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: December 31, 2023

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: 001-10533	Commission file number: 001-34121
Rio Tinto plc	Rio Tinto Limited 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, Australia (Jurisdiction of Incorporation or Organization)
6 St. James's Square London, SW1Y 4AD, United Kingdom (Address of Principal Executive Offices)	Level 43, 120 Collins Street Melbourne, Victoria 3000, Australia (Address of Principal Executive Offices)

Julie Parent, T: 514-848-8519, E: julie.parent@riotinto.com

(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
American Depositary Shares* Ordinary Shares of 10p each** 7.125% Notes due 2028 5.000% Notes due 2033 5.200% Notes due 2040 4.750% Notes due 2042 4.125% Notes due 2042 2.750% Notes due 2051 5.125% Notes due 2053	RIO	New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange

*	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	1,255,892,098	371,216,214	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.

    Yes  ☒    No  ☐

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:

    Yes  ☒    No  ☐

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).

    Yes  ☒    No  ☐

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.:

Large Accelerated Filer  ☒	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.

Yes  ☐    No  ☒

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).

Yes  ☐    No  ☒

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  ☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the

registrants have elected to follow:

Item 17  ☐    Item 18  ☐

If this is an annual report, indicate by check mark whether the registrants are shell companies (as defined in Rule 12b-2 of the Exchange

Act).

    Yes  ☐    No  ☒

(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
KPMG LLP	London, United Kingdom	1118
KPMG	Perth, Australia	1020

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
4	Information on the company
	4.A – History and development of the company	Contents	Cover
		At a glance	2-3
		Chair’s statement	4-5
		Chief Executive’s Q&A	6-7
		Our purpose in action	10-11
		Our stakeholders	12-13
		Strategic context	14-15
		Progressing our strategy	17
		Progressing our four objectives	18-19
		Key performance indicators	20-22
		Chief Financial Officer’s statement	23
		Financial review	24-29
		Portfolio management	30-31
		Iron Ore	32-33
		Aluminium	34-35
		Copper	36-37
		Minerals	38-39
		Our approach to ESG	40-77
		Governance – Additional statutory disclosure – Operating and financial review	146-147
		Financial statements – Note 1 – Our financial performance by segment – Note 5 – Acquisitions and disposals	173-175 181-182
		Rio Tinto Financial Information by Business Unit	286-288
		Shareholder Information – Organisational structure – Nomenclature and financial data – History – Dual-listed companies structure	347 347 347 347
		Additional information – US disclosure – Document on display                                       – Registered offices	357 382

Form 20-F cross-reference guide

Annual Report on Form 20-F 2023 | riotinto.com i

Item	Form 20-F Caption	Location in this document	Page
	4.B – Business overview	At a glance	2-3
		Chair’s statement	4-5
		Chief Executive’s Q&A	6-7
		Creating value by living our purpose	8-9
		Our purpose in action	10-11
		Our stakeholders	12-13
		Strategic context	14-15
		Our strategy	16
		Progressing our strategy	17
		Progressing our four objectives	18-19
		Key performance indicators	20-22
		Chief Financial Officer’s statement	23
		Financial review	24-29
		Iron Ore	32-33
		Aluminium	34-35
		Copper	36-37
		Minerals	38-39
		Our approach to ESG	40-77
		Governance – Additional statutory disclosure – Government regulations – Environmental regulations	150 150
		Financial statements Note 6 – Revenue by destination and product	182-183
		Metals and minerals production	297-298
		Mineral Resources and Mineral Reserves	299-322
		Qualified Persons	323
		Mines and production facilities	324-342
		Additional information – US disclosure – Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934	354
	4.C Organisational structure	Financial statements – Note 30 – Principal subsidiaries – Note 31 – Principal joint operations – Note 32 – Principal joint ventures and associates	226-228 228-229 229-231
		Shareholder Information – Organisational structure – Dual-listed companies structure	347 347
	4.D – Property, plants and equipment	Key performance indicators	20-22
		Portfolio management	30-31
		Iron Ore	32-33
		Aluminium	34-35
		Copper	36-37
		Minerals	38-39
		Our approach to ESG	40-77
		Governance – Additional statutory disclosure – Environmental regulations – Energy efficiency action	150 150
		Financial statements Note 13 – Property, plant and equipment	191-195
		Metals and minerals production	297-298
		Mineral Resources and Mineral Reserves	299-322
		Qualified persons	323
		Mines and production facilities	324-342
		Additional information – US disclosure – Summary disclosure of operations pursuant to Item 1303 of SK-1300 under Securities Act of 1933	363
		Additional information – US disclosure – Individual property disclosure  pursuant to Item 1304 of SK-1300  under Securities Act of 1933	363-380
		Additional information – US disclosure – Internal controls disclosure pursuant to Item 1305 of SK-1300  under Securities Act of 1933	380
		See Exhibit 96.4	–

ii Annual Report on Form 20-F 2023 | riotinto.com

Item	Form 20-F Caption	Location in this document	Page
4A	Unresolved staff comments	None	–
5	Operating and financial review and prospects
	5.A – Operating results	Chair’s statement	4-5
		Financial review	24-29
		Iron Ore	32-33
		Aluminium	34-35
		Copper	36-37
		Minerals	38-39
		Our approach to ESG	40-77
		Governance – Additional statutory disclosure – Operating and financial review – Government regulations – Environmental regulations	146-147 150 150
		Financial statements –h. Impact of Climate Change on the Group –Note 24 – Financial instruments and risk management	162-165 209-214
		Rio Tinto Financial Information by Business Unit	286-288
		Alternative Performance Measures	289-294
	5.B – Liquidity and capital resources	Portfolio management	30-31
		Copper  – Oyu  Tolgoi underground project	37
		Financial statements – Note 14 – Close-down and restoration provisions – Our capital and liquidity – Note 19 -  Net debt – Note 20 – Borrowings – Note 21 – Leases – Note 22 – Cash and cash equivalents – Note 23 – Other financial assets and liabilities – Note 24 – Financial instruments and risk management – Note 28 – Post-retirement benefits – Note 36 – Other provisions – Note 37 – Contingencies and commitments	196-200 204 205 206-207 207-208 208 209 209-214 218-224 234 234-236
	5.C – Research and development, patents and licenses, etc.	Our strategy	16
		Progressing our strategy	17
		Progressing our four objectives	18-19
		Our approach to ESG - Environmental performance	44-65
		Governance – Additional statutory disclosure – Exploration, research and development	150
		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	184 191-195 195
	5.D – Trend information	At a glance	2-3
		Chair’s statement	4-5
		Chief Executive's Q&A	6-7
		Creating value by living our purpose	8-9
		Our purpose in action	10-11
		Our stakeholders	12-13
		Strategic context	14-15
		Our strategy	16
		Progressing our strategy	17
		Progressing our four objectives	18-19
		Key performance indicators	20-22
		Chief Financial Officer’s statement	23
		Financial review	24-29
		Iron Ore	32-33
		Aluminium	34-35
		Copper	36-37
		Minerals	38-39
	5.E  – Critical accounting estimates	Not Applicable	–
6	Directors, senior management and employees

Annual Report on Form 20-F 2023 | riotinto.com iii

Item	Form 20-F Caption	Location in this document	Page
	6.A – Directors and senior management	Governance – Board of Directors – Executive Committee	92-93 94-95
		Additional statutory disclosure – Directors and executives	147
	6.B – Compensation	Governance – Remuneration at a glance - Policy changes – Remuneration Policy – Implementation report – Implementation report tables	115-117 119-126 127-140 141-145
		Financial statements – Note 26 – Employment costs and provisions – Note 27 – Share-based payments – Note 28 – Post-retirement benefits	215 216-218 218-224
	6.C – Board practices	Governance	90-156
		Governance – Board of Directors – Executive Committee – Audit & Risk Committee report – Remuneration Policy – Executives’ service contracts and termination – Compliance with governance codes and standards	92-93 94-95 107-110 124-125 152-156
		Shareholder information – Directors – Appointment and removal of Directors	352
	6.D – Employees	Our stakeholders – Workforce	12
		Our approach to ESG – Talent, diversity and inclusion	73
		Financial statements – Note 25 – Average number of employees – Note 26 – Employment costs and provisions	215 215
		Rio Tinto financial Information by Business Unit	286-288
	6.E – Share ownership	Governance – Implementation report – Executive Directors’ shareholding                                         – Non-Executive Directors’ share ownership                                         – Other share plans	136 140 140
		Financial statements - Note 27 – Share-based payments	216-218
	6.F – Disclosure of a registrant’s action to recover erroneously awarded compensation	Governance – Remuneration policy – Executive remuneration structure - Policy table See Exhibit 96.5	120-122
7	Major shareholders and related party transactions
	7.A – Major shareholders	Shareholder information - Shareownership – Substantial shareholders in Rio Tinto plc – Substantial shareholders in Rio Tinto Limited – Analysis of ordinary shareholders – Twenty largest registered shareholders	349 349 350 350
	7.B – Related party transactions	Financial review	24-29
		Financial statements Note 33 – Related-party transactions	231
	7.C – Interests of experts and counsel	Not applicable	–

iv Annual Report on Form 20-F 2023 | riotinto.com

Item	Form 20-F Caption	Location in this document	Page
8	Financial Information
	8.A – Consolidated statements and other financial information	Financial review – Our shareholder returns policy	29
		Additional statutory disclosure - Operating and Financial Review	146-147
		Financial statements Note 37 – Contingencies and commitments	234-236
		See Item 18	–
	8.B – Significant changes	Financial statements Note 39 – Events after the balance sheet date	237
9	The offer and listing
	9.A – Offer and listing details	Additional statutory disclosure – Operating and financial review	146-147
		Shareholder information – Organisational structure – Markets	347 348
	9.B – Plan of distribution	Not applicable	–
	9.C – Markets	Shareholder information – Markets	348
		See Exhibit 2.1	–
	9.D – Selling shareholders	Not applicable	–
	9.E – Dilution	Not applicable	–
	9.F – Expenses of the issue	Not applicable	–
10	Additional information
	10.A – Share capital	Not applicable	–
	10.B – Memorandum and articles of association	Financial review – Our shareholder returns policy	28
		Governance – Compliance with governance codes and standards	152-156
		Shareholder information – Dual-listed companies structures – Material contracts – Exchange controls and foreign investment – Directors	347-348 351-352 352 352-353
		See Exhibit 2.1	–
	10.C – Material contracts	Financial statements – Our capital and liquidity
		Shareholder information – Material contracts	351-352
	10.D – Exchange controls	Shareholder information – Exchange controls and foreign investment	352
	10.E – Taxation	Additional information – US disclosure – Taxation	354-356
	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	357
	10.I – Subsidiary information	Not applicable	–
	10.J – Annual report to security holders	Additional information – US disclosure – Document on display	357
11	Quantitative and qualitative disclosure about market risk	Risk factors	81-88
		Financial statements Note 24 – Financial instruments and risk management	209-214
		Cautionary statement about forward-looking statements	383
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)	356-357
13	Defaults, dividend arrearages and delinquencies	Not applicable	–

Annual Report on Form 20-F 2023 | riotinto.com v

Item	Form 20-F Caption	Location in this document	Page
14	Material modifications to the rights of security holders and use of proceeds	Not applicable
15	Controls and Procedures	Governance – Additional statutory disclosure – Disclosure controls and procedures – Management’s report on internal control over financial reporting	151 151
		See Item 18 for the Report of the Independent Registered Public Accounting Firm	–
16	[Reserved]	Not applicable	–
16A	Audit committee financial expert	Governance – Audit & Risk Committee report – US listing requirements – Compliance with governance codes and standards	107 152-156
16B	Code of ethics	Our approach to ESG – Governance performance	76-77
16C	Principal accountant fees and services	Governance – Audit & Risk Committee report – External auditors	109-110
		Financial statements – Note 38 – Auditors’ remuneration	237
16D	Exemptions from the listing standards for audit committees	Not applicable	–
16E	Purchase of equity securities by the issuer and affiliated purchasers	Governance – Additional statutory disclosure – Purchases	149
		Financial statements – Note 34 – Share capital	232
16F	Change in registrant’s certifying accountant	Not applicable	–
16G	Corporate Governance	Governance – Compliance with governance codes and standards	152-156
16H	Mine safety disclosure	See Exhibit 16.1	–
16I	Disclosure regarding foreign jurisdictions that prevent inspections	Not applicable	–
16J	Insider trading policies	Not applicable	–
16K	Cybersecurity	Our approach to risk management	79-80
		Risk factors – Preventing material business disruption and data breaches due to cyber events
		Additional information – US disclosure – Cybersecurity	358-362
17	Financial statements	Not applicable	–
18	Financial statements	About Rio Tinto	158
		About the presentation of our financial statements	158-167
		Group Income Statement	168
		Group Statement of Comprehensive Income	169
		Group Cash Flow Statement	170
		Group Balance Sheet	171
		Group Statement of Changes in Equity	172
		Financial statements – Notes 1 to 40	173-237
		Report of Independent Registered Public Accounting Firms	267-269
19	Exhibits	See Exhibit List at the end of this document

Other information contained within Rio Tinto’s Annual Report on Form 20-F 2023 (Form 20-F) is not included in this Form 20-F unless specifically

identified above and is furnished to the SEC for information only.

vi Annual Report on Form 20-F 2023 | riotinto.com

Contents

Strategic report
2023 year in review	1
At a glance	2
Chair's statement	4
From the Chief Executive	6
Creating value by living our purpose	8
Finding better waysTM in 2023	10
Our stakeholders	12
Strategic context	14
Our strategy	16
Progressing our strategy	17
Progressing our four objectives	18
Key performance indicators	20
Chief Financial Officer's statement	23
Financial review	24
Portfolio management	30
Iron Ore	32
Aluminium	34
Copper	36
Minerals	38
Our approach to ESG	40
Environmental performance	44
Social performance	66
Governance performance	76
Our approach to risk	78
Our approach to risk management	79
Risk factors	81
Five-year review	89
Directors’ report
Governance	90
Chair's introduction	91
Board of Directors	92
Executive Committee	94
Our stakeholders - Section 172(1) statement	96
How the Board monitors culture	101
Board activities in 2023	102
Governance framework	103
Evaluating our performance	104
Nominations Committee report	105
Audit & Risk Committee report	107
Sustainability Committee report	111

Remuneration report
Annual statement by the People & Remuneration Committee Chair	113
Remuneration Policy	119
Implementation report	127
Additional statutory disclosure	146
Compliance with governance codes and standards	152
Financial statements
About Rio Tinto	158
About the presentation of our financial results	158
Group primary statements	168
Notes to the 2023 financial statements	173
Other information
Report of independent registered public accounting firms	267
Financial information by business unit	286
Alternative Performance Measures	289
Production, Reserves, Resources and Operations
Metals and minerals production	297
Mineral Resources and Mineral Reserves	299
Qualified Persons	323
Mines and production facilities	324
Additional information
Independent limited assurance report	344
Shareholder information	347
US disclosure	354
Contact details	382
Cautionary statement about forward-looking statements	383

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 only.

References to KPMG's limited assurance report related to

sustainability are not incorporated in, and do not form

part of, this Form 20-F.

Our operations are located on land and waters that have belonged to Indigenous

Peoples for thousands of years. We respect their ongoing deep connection to, and

their vast knowledge of, the land, water and environment. We pay respects to Elders,

both past and present, and acknowledge the important role Indigenous Peoples

play within our business and the communities where we live and work.

Cover | The BlueSmelting™ project in Sorel-Tracy, Canada. BlueSmelting™ involves a completely new ilmenite reduction

technology that could generate 95% less greenhouse gas emissions than the current reduction process, enabling the

production of titanium dioxide, steel and metal powders with a significantly lower-carbon footprint.

2023 year in review We are finding better waysTM to provide the materials the world needs. In 2023, our teams around the world sought opportunities to reduce our carbon footprint, to partner to develop technologies to decarbonise steel and aluminium production, to find more efficient ways to supply copper and critical minerals essential for the energy transition, and to create new products from waste. We explore, we mine, we process, and our ambition continues to be a business with a commodity mix aligned with evolving customer demand in a decarbonising world. But we cannot do it on our own. So we strive to create partnerships that solve problems and create solutions with lower societal and environmental impact. The approach applies as much to large-scale, transformational innovation as it does to incremental everyday progress, such as our safety and operational performance.	All-injury frequency rate	Consolidated sales revenue
	0.37	$54.0bn
	(2022: 0.40)	(2022: $55.6bn)
	Women in our workforce	Profit after tax attributable to owners of Rio Tinto
	24.3%	$10.1bn
	(2022: 22.9%)	(net earnings) (2022: $12.4bn)1
	Scope 1 and 2 greenhouse gas emissions	Net cash generated from operating activities
	32.6Mt	$15.2bn
	(equity CO2e) (2022: 32.7Mt)2	(2022: $16.1bn)
	Increase in spend with Indigenous businesses in Australia	Underlying EBITDA3
	28%	$23.9bn
	(2023 A$725 million increased from A$565 million in 2022)	(2022: $26.3bn)
	Completion rate of “Building Everyday Respect” employee learning module	Total dividend per share
	83.5%	435 cents
	(2022 comparative dataset is not available due to new program)	(2022: 492 cents)

		For more information about our environmental, social and governance (ESG) performance see page 43.		For more information about our financial review see page 24.
1.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 “Income Taxes”. Refer to page 166 for details. 2.In 2023, we improved our carbon emissions reporting and now use the market-based method as our primary measure for assessing performance against our targets. We have restated prior year numbers and our 2018 baseline accordingly. We exclude reductions achieved by divesting assets and increases associated with acquisitions from our target and so also adjust our 2018 baseline to take this into account. For comparison purposes, we have disclosed our 2022 emissions on the same basis. Our adjusted 2022 figures are 32.7Mt CO2e and our actual 2022 emissions (unadjusted for acquisitions) are 32.3Mt CO2e. 3.Underlying EBITDA is a non-IFRS measure. A definition of underlying EBITDA and a reconciliation to its closest IFRS measure is presented in note 1 (pages 174-175).

Our 2023 reporting suite

Our Annual Report is part of our broader 2023 reporting suite. You can find this report and others, including our 2023 Climate Change Report,

Sustainability Fact Book, 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology and Industry Association Disclosure, on our

website. Some of our reports are published on our website later in the year, including our 2023 Taxes Paid Report, Country-by-Country Report,

Modern Slavery Statement, and our Voluntary Principles on Security and Human Rights report.

To view and download these documents see riotinto.com/reports.

2023 Annual Report	2023 Climate Change Report	2023 Sustainability Fact Book	2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology	2023 Industry Association Disclosure

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 1

Our business

We operate in 351 countries where our 57,000 employees2 are working to find better ways to provide the

materials the world needs. Our portfolio includes iron ore, copper, aluminium and a range of other minerals and

materials needed for people, communities and nations to grow and prosper, and for the world to cut carbon

emissions to net zero. We continuously search for new projects that can support the energy transition, currently

exploring for eight commodities in 18 countries.

We have more than 150 years of mining and processing experience guiding our work. Today, our business relies

on technology such as automation and artificial intelligence to help us run safer, more efficient operations and

leave a lighter footprint.

Iron Ore			Aluminium
Segmental revenue $32.2bn (2022: $30.9bn)	Underlying EBITDAn $20.0bn (2022: $18.6bn)	Production (100% basis) 331.5Mt Pilbara iron ore (2022: 324.1Mt)	Segmental revenue $12.3bn (2022: $14.1bn)	Underlying EBITDA $2.3bn (2022: $3.7bn)	Production (our share) 54.6Mt bauxite (2022: 54.6Mt) 3,272kt aluminium (2022: 3,009kt)
Employees2 16,000 (2022: 15,000)			Employees2 15,000 (2022: 15,000)
Our products Our portfolio includes iron ore, aluminium, bauxite, alumina, copper, diamonds, titanium dioxide, lithium, salt and borates.

For more information see pages 32-39.

Operations and projects3

Iron Ore

Aluminium

Copper

Minerals

Mines

Projects

Smelters, refineries, processing plants and

power and shipping facilities remote from mine

Non-managed operations

1.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.

2.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint

ventures. Refer to page 215 for more information.

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.

Operations and projects are indicated according to their product group. The Iron Ore Company of Canada is an iron ore operation

but is reported under Minerals due to the management structure. 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.

4.2022 underlying EBITDA for Copper has been adjusted to reflect a change in management responsibility for the Simandou iron

ore project from Copper to the Chief Technical Officer. As a result, we have moved Simandou outside of reportable segments and

accordingly adjusted prior period comparatives.

At a glance

2 Annual Report on Form 20-F 2023 | riotinto.com

Outlook

We have a strong portfolio of assets across six continents. Our focus is on growing our business while decarbonising,

providing products to our customers that support the transition to a low-carbon economy, and delivering attractive

returns to our shareholders.

Many of our products are essential for the energy transition: we expect this new source of demand, combined

with traditional sources, to drive significant volume growth in our products over the coming decades. In developed

markets, customer demand for low-carbon and recycled materials is growing with supply security top of mind.

In developing economies, reliable access to raw materials for domestic processing is critical. We have the people,

orebodies, technology, processing capabilities, access to capital and relationships to meet these diversifying needs.

Copper			Minerals
Segmental revenue $6.7bn (2022: $6.7bn)	Underlying EBITDA $1.9bn (2022: $2.6bn)4	Production (consolidated basis) 620kt mined copper (2022: 607kt)	Segmental revenue $5.9bn (2022: $6.8bn)	Underlying EBITDA $1.4bn (2022: $2.4bn)	Production (our share) 1,111kt titanium dioxide slag (2022: 1,200kt) 9.7Mt iron ore pellets and concentrate (2022: 10.3Mt)
Employees2 8,000 (2022: 8,000)			Employees2 10,000 (2022: 9,500)

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 3

Very sadly, I must begin by acknowledging the tragic deaths of our four

Diavik colleagues and two airline crew members in a plane crash near Fort

Smith, in the Northwest Territories, Canada, on 23 January 2024. They will

all be dearly missed, and our thoughts are very much with their loved ones,

everyone in Fort Smith, and our team at Diavik.  

Our focus in 2023, and as we move into 2024,

has been on embedding an empowering

culture and on delivering consistent

operational performance to progress our four

key strategic objectives.

We recognise that creating and maintaining a

culture where everyone can be at their best

requires constant effort but, two years since we

started learning from the findings of the

Everyday Respect Report, there is positive

momentum. Our executive team is driving this

change, with the full support of the Board,

reinforcing the importance of mindsets

and behaviours that ensure everyone,

everywhere in our operations feels safe, valued

and empowered.

The Group has also made progress on our

four key objectives of becoming best operator,

excelling in development, having impeccable

environmental, social and governance (ESG)

credentials and strengthening Rio Tinto’s

social licence. There have been real

improvements in our Pilbara iron ore

operations; we are ramping up underground

copper production at Oyu Tolgoi; we are

significantly closer to unlocking the Simandou

project; and we have made strategic and

exciting investments in our aluminium

business, such as the Matalco recycling joint

venture.

Our strong results in 2023 demonstrate our

continued progress towards our four

objectives, with a continued focus on financial

discipline. This discipline has enabled us to

invest in the future health of our business

while at the same time delivering attractive

returns to investors, with the Board

recommending a final dividend of 258 US

cents, taking total dividends declared to $7.1

billion.

Growing and deepening connections

We are committed to deepening connections

with our stakeholders to earn trust, resolve

conflicts, and strengthen our social licence.

This is constant work in progress, but there

were many bright spots in the way our

relationships with governments, communities

and Indigenous Peoples evolved in 2023.

Our partnership with the Mongolian

Government highlights the mutual benefits

when we get this right. We are now deepening

our connection to Mongolia, most recently

forming a partnership with UNESCO to

support its sustainable development. In

Canada, we are growing our aluminium

business, including expanding the use of

AP60 low-carbon smelting technology, with

the continued support of the national and local

governments.

More broadly, we are embedding and

replicating the learnings from a shift to co-

management and co-development at our

operations, such as working closely with the

Nyiyaparli and Ngarlawangga people as we

progress the Rhodes Ridge project in the

Pilbara. As we get closer to unlocking

Simandou in Guinea, we are doing so in close

partnership with communities, in a way that

will support further economic development

beyond the mine.

This commitment to ESG and a stronger

social licence does not end with the life of a

mine. At Le Thoronet in south-east France, a

rehabilitated former bauxite mine we have

handed back to the French authorities, I saw

evidence of how we are thinking about the full

lifecycle of our assets, beyond our time as their

custodians.

An important part of our engagement is with

non-governmental organisations (NGOs).

Taking part in our civil society roundtables in

the US, UK and Australia provided opportunities

to listen to the concerns of leading civil society

voices, what we can learn to do better, and

understand how we can better work with these

groups. They encouraged us to forge ahead on

establishing nature and biodiversity targets and

helped me understand further how we can better

engage with our communities.

Since becoming Chair almost two years ago, I

have been fortunate to spend a lot of time with

our talented people across the organisation.

In our 150th anniversary year, we reflected

together on how we can reinvigorate the core

parts of our DNA and be successful in the 150

years to come. With every person I meet and

every site I visit, I grow in confidence that we

are heading in the right direction. This was

clearly illustrated when the Board saw our four

objectives in action at Oyu Tolgoi. We were

deeply impressed by the productivity, the use

of cutting-edge technology and the connection

to the community; a blueprint for what we can

achieve everywhere.

Meetings with stakeholders have also

reinforced the important societal role we have

to play. As a Board, we spent time in China

with our customers, partners, and government

to better understand how combining our

knowledge and technology can create win-win

opportunities and help address the climate

challenge. Similarly, in conversations with

officials in Washington D.C., Canberra,

Ottawa, London, Brussels, Ulaanbaatar and

more, we have discussed the critical role of

mining for energy security, in addition to

providing the basis for resurgent

manufacturing.

What is very clear to me, is Rio Tinto’s

strategic importance in helping societies

resolve their most urgent challenges. Rio

Tinto can be fundamental to the energy

transition. Our industry has been and will

continue to be relied upon to provide the vast

quantities of metals and minerals needed to

build the infrastructure for the generation,

transmission, and storage of renewable

power. The need to repower our own assets

with renewable power can also support

investment in renewables – our Gladstone

aluminium operations being a recent example

of this.

Chair’s statement

4 Annual Report on Form 20-F 2023 | riotinto.com

Innovation and growth

Innovation and technology are key to driving

our progress, while helping us to simplify and

automate for safer and more efficient

operations. There is real momentum in our

project pipeline and our Chief Scientist’s office

is steering us towards more breakthroughs in

sustainable mining and processing, including

BlueSmeltingTM, ELYSISTM and BioIronTM.

We are also working towards our ambitious

targets of a 50% reduction in Scope 1 and 2

emissions by 2030 and achieving net zero

by 2050. This is a physically challenging

task that will require great imagination,

collaboration, and technological advances that

do not yet exist. However, we have

now progressed to a disciplined and

detailed roll-out program, providing greater

definition to what an economical pathway

to decarbonisation looks like. At the

same time, we are exploring more ways

to help our customers accelerate

their own decarbonisation to tackle

our Scope 3 emissions.

We are also seeking to further embed these

targets by introducing a decarbonisation

scorecard into our long-term incentive plan as

part of our 2024 Remuneration Policy

proposals. More detail on these proposals is

set out on page 135.

Our partnerships are key to how we are

developing the technologies to grow and

reduce emissions. Highlights include working

with China Baowu to explore projects to

decarbonise the steel value chain, a multi-

year supply agreement between Iron Ore

Company of Canada and H2 Green Steel in

Sweden, and teaming up with Sumitomo at

our Aluminium Pacific Operations to build a

first-of-a-kind hydrogen plant in Gladstone to

trial lower-carbon alumina refining, with

support from the Australian Government.

Board changes

In the summer of 2022, we evaluated the mix

of skills and experience on the Board and

concluded that we needed to refresh our

composition, with a particular focus on

deepening our mining, operations and

projects experience, as well as our renewable

energy and sustainability capabilities. We also

needed to prepare for future transitions in our

Audit and Risk Committee. I am pleased that

we have made significant progress in this,

with the announcement of six new Non-

Executive Directors.

Dean Dalla Valle, who joined the Board in

June, has vast operational and technical

expertise, and wide experience developing

complex mining projects. Susan Lloyd-

Hurwitz, who also joined in June, is a highly

respected leader and brings deep CEO

experience across large projects, cultural

change, diversity and inclusion, and

sustainability. Joc O’Rourke joined the

Board in October and brings 25 years of

mining industry experience and a passion

for improving operational performance.

In December, we announced the

appointments of Martina Merz, who joined the

Board on 1 February 2024, and Sharon

Thorne, who will join the Board in July 2024.

Both are exceptional leaders, Martina with

deep CEO experience in handling cyclical

businesses, research and development

and decarbonisation initiatives, and Sharon

with deep industry knowledge gained over

30 years of auditing and advising multinational

companies.

As part of that phased transition, Simon

McKeon has agreed to step down as a

Director at the conclusion of our annual

general meetings in 2024, and will not

therefore seek re-election by shareholders.

I am extremely grateful to Simon for his

invaluable contribution. Having regard for his

roles as Rio Tinto Limited's Senior

Independent Director and the Designated

Director for workforce engagement, Simon

has taken a particular interest in Rio Tinto's

revitalised approach to engagement with the

broader Australian community as well as the

company's cultural reset. On behalf of the

Board, I wish him well for the future.

In December, we also said goodbye to a

colleague who will be greatly missed.

Dr Megan Clark stepped down after 9 years

on the Board. Her experience and wise

counsel were invaluable, and we wish her

well for the future.

I am excited to lead a Board with such depth

and breadth of insight, who I know share a

commitment to help Rio Tinto capture

opportunities and achieve its full potential. For

more information on the Board, please see

the Directors’ report on pages 90 to 145.

Looking ahead

There is no doubt we are living through

turbulent times. Politics is becoming

increasingly polarised, the geopolitical

landscape has become more complex

and volatile, and the economic backdrop

remains challenging.

Nevertheless, our purpose, “Finding better ways

to provide the materials the world needs”, drives

everything your company does.

I look to the future with optimism - there has

never been greater demand for what we do, and

the capability of our people, and the quality of our

partnerships, assets, technology, and innovation

give me great confidence we can deliver for all of

our stakeholders.

Once again, I want to thank the leadership

team and the thousands of employees,

contractors and partners around the world

who are bringing Rio Tinto’s purpose and

values to life.

Dominic Barton

Chair

21 February 2024

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 5

Q&A with Jakob Stausholm

2023 highlights

0.37

All-injury frequency rate

(2022: 0.40)

$15.2bn

net cash generated from operating

activities

(2022: $16.1bn)

$10.1bn

profit after tax attributable to owners of

Rio Tinto

(2022: $12.4bn)

$7.1bn

total dividend declared

(2022: $8bn)

What are your reflections on 2023?

We approached the year with confidence in

our strategy, a deep commitment to safety and

financial discipline, and a continuous

improvement mindset. By continuing to focus

on our four objectives, we have put Rio Tinto

in a stronger position to capture traditional

and emerging opportunities. In 2023, we

returned to investing in profitable growth with

an eye to the future. Of course, we have a lot

more to do. But that is the best part; there is

so much ahead of us.

While we had zero fatalities at our managed

operations in 2023, four team members from

our Diavik Diamond Mine in the Northwest

Territories in Canada and two crew members

lost their lives when a charter flight crashed

on its way to the mine in January 2024.

We are devastated by this tragic incident

and are working with the authorities to

understand the full facts of what happened.

Nothing is more important than the safety of

our employees, contractors and communities

and we remain committed to evolving our

culture and processes to ensure everyone

goes home safely every day.

We made encouraging progress improving our

operations, including the Pilbara, where we

achieved guidance for iron ore shipments. We

also hit project milestones including first

underground copper production at Oyu Tolgoi in

Mongolia. Despite continued uncertainty in the

operating environment, we delivered another set

of robust financial results. We generated

underlying earnings of $11.8 billion (2022:

$13.4 billion) and net cash generated from

operating activities of $15.2 billion (2022:

$16.1 billion). Profit after tax attributable to

owners of Rio Tinto was $10.1 billion (2022:

$12.4 billion) and our balance sheet remains

strong with net debt of $4.2 billion (2022: net

debt of $4.2 billion). As a result, the Board has

recommended a final ordinary dividend of 258

US cents per share, resulting in total shareholder

returns declared this year of $7.1 billion. This

represents a pay-out ratio of 60%, in line with our

policy.

2023 was another year of extreme weather and

broken temperature records. In December, I

attended the UN climate summit (COP28) and

came away concerned the world is not on track

with the Paris Agreement goal to limit warming to

1.5°C by 2100. National targets are not in line

with the overall goal, and current climate policies

in many countries are not yet aligned with their

stated ambitions.

Many 1.5°C scenarios now overshoot the long

term temperature goal and rely on significant

deployment of carbon dioxide removals to get

to net zero that may not be plausible. No

single company or country can halt the course

of climate change alone, so partnering to

reduce emissions is vital. This is why we put

the low-carbon transition at the heart of our

business strategy and are working with

governments, customers, communities and

others to decarbonise our operations and

value chains.

Rio celebrated its 150th anniversary in

2023. What did reaching this milestone

mean to you?

Rio Tinto’s strength is built upon its rich

history, and it has been important to explore

our past in our anniversary year to inform our

future. Our story is full of achievements and

failures we must learn from, but there is one

consistent theme: the spirit of innovation and

continuous improvement. This is what our

purpose – finding better ways to provide the

materials the world needs – is all about.

Our people have been doing this from the

beginning, and reaching this milestone has

reinvigorated our commitment to our purpose.

It has also been a reminder that we are a

long-term business. We are laying the

groundwork to ensure Rio Tinto is successful

not just today but for another 150 years.

We remained focused on our four

objectives in 2023. How are we doing

on our journey to best operator?

We need to be in the best shape possible to

capture the opportunities ahead of us, which

is why we are investing in the long-term health

of our people, assets, and ore bodies. By

prioritising these areas, we are creating the

conditions for consistent operational and

financial performance.

Evolving our culture is fundamental to how we

unlock performance. We have continued to

implement the 26 recommendations

of the Everyday Respect Report, and we are

embedding best practices and empowering

our people by deepening the rollout of

the Safe Production System (SPS). This is a

multi-year process, but it is already having a

profound impact. SPS has delivered real

improvements in our Pilbara iron ore

operations, realising a 5 million tonne

production uplift in 2023 and on target to

deliver another 5 million tonnes in 2024. At the

same time, Oyu Tolgoi is an example

of what becoming best operator looks like.

Less than a year since we started

underground production, we are well on track

to ramp up to 500,000 tonnes of copper per

annum, from 2028 to 2036 from this world-

class operation.

From the Chief Executive

6 Annual Report on Form 20-F 2023 | riotinto.com

“Nothing is more important

than the safety of our

employees, contractors and

communities. We remain

committed to evolving our

culture and processes to

ensure everyone goes home

safely every day.”

Our Chief Operating Officer Arnaud Soirat was

instrumental to the success of SPS and Oyu

Tolgoi. Arnaud stepped down at the end of

January 2024 ahead of his retirement,

and I want to thank him for his incredible

contribution and dedication to Rio Tinto for

more than a decade.

How is striving for impeccable ESG

helping us meet customer

expectations?

Our customers increasingly tell us they

want sustainable, traceable, and transparent

low-carbon materials, as well as help

decarbonising their own value chains.

Our strategy and commitment to the highest

environmental, societal and governance

standards positions us to meet these aims.

Our Boron operation became the first open pit

mine to fully transition its heavy machinery to

renewable diesel, and we had breakthroughs

including piloting our BlueSmeltingTM technology,

which reduces emissions from processing

ilmenite into titanium dioxide.

More broadly, our approach to environmental,

social and governance (ESG) is informing our

decision-making as we develop projects

including Oyu Tolgoi and Simandou. We are

working closely with communities in areas such

as biodiversity and water management, and to

help realise the full opportunities for economic

development at a national and local level. By

working to the highest ESG standards and

utilising our STARTTM blockchain technology, we

are providing customers with the sustainable and

traceable products they expect.

How is progress on excelling in

development positioning the business

for the future?

Excelling in development is all about shaping our

portfolio for the future. We have an attractive

pipeline and considerable momentum to grow in

the materials essential for the energy transition.

We are further strengthening our Iron Ore

business with key projects in the Pilbara, and in

Guinea we hit major milestones to help us unlock

Simandou, the world’s largest known untapped

source of high-grade iron ore. I visited Guinea in

October and was impressed by how quickly early

works are progressing as we move closer to full

sanction.

In our Aluminium business, we announced an

investment of $1.1 billion to expand our state-

of-the-art AP60 smelter, replacing the Arvida

smelter. We also launched into the rapidly

growing North American market for recycled

aluminium with Matalco, a joint venture that

develops our position further along the

value chain. We remain on track to deliver

1 million tonnes of copper per annum by

the end of the decade, with considerable

progress at Oyu Tolgoi underground,

expansion pathways at Kennecott, the

continued development of Resolution, and

further options with La Granja and Winu.

Further down the pipeline, we have finalised

Nuevo Cobre, a joint venture with Codelco, to

actively explore for copper in Chile.

Critical minerals are vital to achieving a net

zero future, and we continue to explore

opportunities in this area. Highlights from

2023 include steadily advancing the Rincon

lithium project in Argentina, and the

acquisition of the BurraTM Scandium Project in

New South Wales, Australia, a high-grade

scalable resource that could produce up to 40

tonnes per annum of scandium oxide.

How have we strengthened our social

licence this year?

Our social licence underpins all our objectives –

we cannot function as a business without it and

our understanding of this is deepening across

our teams. My conversations with stakeholders

this year suggest we have come a long way to

rebuild trust. However, this is an ongoing journey,

and it is ultimately up to others to judge how we

are performing. We need to continue to listen to

voices from the communities where we operate

and engage with civil society organisations to

understand what we can do better.

Part of this development is having greater

transparency. In March we published an

independent report based on an audit of our

Cultural Heritage Management performance.

The report helped us identify target areas

for improvement, such as a sustained focus

on community engagement throughout

the life of our operations. We have started

taking a more community-led approach,

with co-management and co-development

of sites becoming an embedded part of our

process from the beginning.

We continued to work closely with Indigenous

Peoples this year to ensure better outcomes for

all stakeholders. This has involved partnering for

economic prosperity, such as increasing

opportunities for Pilbara Aboriginal Businesses

as construction progresses at Western Range.

Other highlights include working with the

Yindjibarndi Energy Corporation to explore

opportunities for renewable energy projects and

signing the Aganow agreement to enable greater

participation by the Naskapi Nation of

Kawawachikamach in Iron Ore Company of

Canada activities.

What are your main focus areas

for 2024?

Rio Tinto is at the heart of the energy transition

and facing an opportunity-rich world. At the same

time, we are still seeing powerful traditional

drivers of demand and our core markets are

growing. Global trends such as re-

industrialisation and a renewed emphasis on

supply-chain security are presenting even more

opportunities. As both a mining company and a

processing company with a global footprint and a

portfolio built for the future, we are well-

positioned to capture these over the long-term.

Our focus will remain on securing the

enduring health and success of the business,

with an emphasis on disciplined growth,

improving operational performance, exploring

options along the value chain, and investing in

the technologies that will allow us to reach our

decarbonisation targets.

We’ll continue our journey of culture change,

building an environment of trust where

everyone feels safe, respected and

empowered to deliver results. This is what will

drive our performance and enable us to keep

delivering for all our stakeholders in 2024.

Jakob Stausholm

Chief Executive

21 February 2024

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 7

Creating value by living our purpose

Our purpose is at the core of everything we do. It inspires our efforts and guides our decisions.

Finding better ways™

to provide the materials the world needs.

Our strategy will move our business, customers, partners and the world forward.

Grow in materials essential for the energy transition Aim to grow in commodities such as copper, aluminium, high-grade iron ore, lithium and other critical minerals. Accelerate the decarbonisation of our assets Switch to renewable power, electrifying processing and running electric mobile fleets. Develop products and technologies that help our customers decarbonise Partner with customers and suppliers and invest in R&D to reduce emissions across our value chains.

Our objectives guide our everyday work to achieve our strategy and drive progress.

Become the best operator Expand our capabilities and empower our people to improve our operational performance.	Achieve impeccable ESG  Align our priorities with community expectations and consider sustainability in all decisions.
Excel in development Grow and develop our pipeline of opportunities, and build our capabilities and partnerships for capital-efficient delivery.	Strengthen our social licence Earn trust by building meaningful relationships and partnerships, continuing to listen and learn.

Our people, culture and values create an environment where everyone feels safe,

respected and empowered, so we can continue to find better ways together.

Care about the safety of ourselves and others, creating an environment of trust, and the impact we have on our colleagues and others, communities and the environment. Courage to show vulnerability, speak up and challenge when we can do better, and take ownership of our actions and outcomes to drive performance. Curiosity to learn and grow in our fields of expertise, look for opportunities to solve problems with everyday innovation, and be open to different perspectives.

8 Annual Report on Form 20-F 2023 | riotinto.com

Our business model helps us deliver value that matters to our stakeholders.

Most importantly, effective and responsive corporate governance manages our performance.

Tracked and measured

We measure our strategic progress through a

mix of financial and non-financial key

performance indicators (KPIs) that align with our

purpose and strategy. In addition to key financial,

operational and safety performance metrics, we

track progress across ESG themes including

gender diversity and greenhouse gas (GHG)

emissions.

Overseen by our Board

Our success depends on effective and

responsive corporate governance. Our Board

oversees how we deliver on our purpose and

strategy and monitors our culture to make sure

it aligns with our values. The Board

also oversees how we manage social and

environmental risks and monitors our

performance to ensure we generate value

for shareholders while our business

contributes to wider society.

Reflected in remuneration

Our Remuneration Policy is designed to

support the delivery of our strategy in a

responsible and sustainable way that reflects

our purpose and values. It considers our

financial and safety performance, our culture

and our ESG measures, such as accelerating

decarbonisation and strengthening our social

licence. The main elements include base

salary, short-term incentive plan (STIP) and

long-term incentive plan (LTIP).

For more information about our business model see riotinto.com/ourbusiness.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 9

Repurpose & renew

We design and operate our assets

to leave a positive legacy when

operations cease. We engage our

stakeholders in rehabilitation

planning and we review each

site’s plans annually.

Explore & evaluate

We use new and advanced

technologies to explore,

discover and deliver attractive

growth opportunities, focusing

on materials essential for the

energy transition.

Market & deliver

We market our products to meet

the diverse needs of our

customers and maximise value

for our business, delivering

them safely, reliably and

efficiently through our global

logistics network.

Develop & innovate

We are an industry leader in

research and development

and partner with customers,

technology providers, academia

and local communities to

develop new projects and more

efficient, safer and sustainable

production pathways.

Mine & process

We own and operate mining and

processing operations spanning

a range of countries and

commodities. We are a global

industry leader, focused on safe,

productive and environmentally

responsible performance.

Finding better ways™ in 2023

Our purpose in action

Continuous improvement and innovation are part of our DNA. Right across the

business, we are finding better ways to provide the materials the world needs

while reducing our carbon footprint, developing technologies needed to make net

zero a reality, and continuing to support our people and the communities where

we live and work.

For more highlights from 2023 see our end-of-year video at riotinto.com/ annualreport.

BioIronTM – pioneering breakthrough technologies	Connecting with Country	Accelerating innovation: bringing the outside world in
In 2023, we continued developing BioIronTM, which has the potential to reduce CO2 emissions by more than 95% during steelmaking. BioIronTM uses raw biomass produced from agricultural by-products (instead of metallurgical coal) and microwave energy, to convert Pilbara iron ore to metallic iron during steel making. It also uses approximately 65% less electricity during steel making when compared to other green hydrogen1 technologies. We have proved BioIronTM works on a small scale through a successful collaboration with the University of Nottingham and Metso Corporation. Now we have secured a site to continue testing on a larger scale, and are progressing regulatory approvals for the BioIronTM Continuous Pilot Plant which will have the capacity of one tonne per hour.	In 2023, we commenced cultural immersion secondments with JawunTM, a non-profit partnership program with Indigenous organisations and communities across Australia. Every year, 24 of our people will contribute their skills to support Aboriginal economic development as part of the program, while also learning about Aboriginal culture and history. This two-way learning opportunity has already deepened our cultural understanding and contributes to a more culturally aware workplace. “You have an opportunity to provide back to an Indigenous organisation, and in return you get to explore this beautiful Country and learn a lot of things from the local Indigenous Peoples.” Travis Creed, Superintendent Capability Development.	In 2023, we established an Innovation Advisory Committee, bringing together experts in innovation and research and development. The Committee is helping us accelerate our innovation portfolio and offers guidance on emerging technologies in areas such as health and safety, environmental, social and governance, growth, carbon abatement and productivity. To help us find innovative ways to provide the materials the world needs for the energy transition, we have also committed $150 million over ten years to create a Centre for Future Materials led by Imperial College London.

1.Green hydrogen is produced using renewable energy.

For more information about BioIronTM see riotinto.com/bioiron.

10 Annual Report on Form 20-F 2023 | riotinto.com

Becoming best operator with our Safe Production System

We are implementing lessons from our own pockets of excellence. We continue to see improved production efficiency,

safety and engagement at the sites where we have deployed our Safe Production System (SPS).

Global 25% improvement in AIFR1 in the second half of 2023 at SPS sites, when compared to the first half	Iron Ore 5Mt year-on-year production uplift at Pilbara iron ore sites, attributable to SPS	Copper 90% record performance of concentrator effective utilisation at Kennecott across Q3 and Q4
Aluminium 8% year-on-year increase in casting operating time at Grande Baie (excluding shutdowns)	Iron Ore 34% decreased variability in processing operating time year-on-year at Hope Downs	Minerals 32% year-on-year improvement in AIFR1 at Iron Ore Company of Canada

1.All-injury frequency rate. For more information about SPS see riotinto.com/innovation.

First open pit mine in the world to move to renewable diesel	Investing in recycled aluminium
Our Boron operation in California has fully transitioned their heavy machinery from fossil diesel to renewable diesel. We expect this to reduce our CO2 equivalent by up to 45,000 tonnes per year, similar to eliminating the emissions of 9,600 cars. In the first quarter of 2024, we will begin to replace our entire fossil diesel consumption with renewable diesel at our Kennecott copper operation in Utah. It will reduce emissions by around 495,000 tonnes of CO2 equivalent per year, similar to eliminating the emissions of more than 107,000 cars. Note: emissions-to-cars conversion source - Greenhouse Gas Equivalencies Calculator | US EPA.	We have formed a joint venture with  Giampaolo Group to purchase a 50% stake in Matalco. Aluminium is an essential metal needed to decarbonise, but its production requires vast amounts of electricity and accounts for about 3% of the world’s CO2. The partnership will help us provide a broader range of high-quality and low- carbon, primary, recycled, and blended aluminium products, at a time when customers are looking for solutions to lower their carbon footprint. This move follows other recent investments in our aluminium business in North America, including $1.1 billion to expand AP60 smelter equipped with low-carbon technology at Complexe Jonquière in Canada, and $107 million to install a new alumina conveyor at Kitimat.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 11

Our stakeholders

Through partnerships and

collaboration, we gain the

benefit from the expertise

and insight of others.

Our stakeholders give us

a competitive edge and

encourage us to work more

thoughtfully and responsibly.

By engaging with them and

listening to their views, we

can make a more meaningful

contribution to society

while becoming a more

sustainable company.

Section 172(1) statement

This stakeholder section, together

with our stakeholder pages in the

Governance section (pages 96-100),

explains how the Board takes

account of stakeholder interests.

These comprise our “Section 172(1)

statement”.

Workforce

We are creating an environment of trust,

where our people feel safe, respected and

empowered to be their best, to help us attract,

retain and grow great talent and deliver results.

In 2023, we focused on initiatives to help our

people better align with our strategy and culture

journey; we updated our incentive and

performance management framework,

refreshed our Code of Conduct and continued

to develop our leaders.

Our people survey is one of the tools that helps

us understand how our employees experience

working for us. In our most recent survey

conducted in October 2023, our employee

satisfaction rating (eSAT) increased by 1 point

(73 to 74).

55,000¹

Employees across six continents

(2022: 52,000)

74

Employee satisfaction score

(eSAT)

(2022: 73)

Civil society organisations

One way we can help address the world’s

many complex environmental, social and

governance challenges, such as climate

change, human rights violations, bribery and

corruption, is through collaboration with civil

society organisations (CSOs) and other

stakeholders. Our senior leaders regularly

engage with CSOs, and although our opinions

may differ from time to time, we respect their

views and value the challenges they set for us

to improve performance across our business.

We hold yearly roundtable discussions with

CSOs in Australia, Europe and North America.

28

Organisations participated in our 2023 CSO

roundtable discussions in person

3

Roundtables held in Washington D.C.,

London and Sydney in 2023. A wide range

of topics was discussed, including nature

targets; free, prior and informed consent

(FPIC); community support; our operations

in Madagascar; and Resolution Copper.

Communities

Communities are the places and the people

who make up where we live, work and call

home – from the Gobi Desert in Mongolia, to

KwaZulu-Natal, South Africa, and Saguenay–

Lac-Saint-Jean, Quebec, Canada. We strive to

partner consistently and honestly with

communities on a range of issues, such as

jobs and local procurement, as well as the

impact of our operations on the local

environment. Over the past few years, we

have focused on our own standards of open

and transparent engagement. We are

targeting for all sites to co-manage cultural

heritage with communities and the knowledge

holders, by 2026.

$84.0m

Voluntary social investment in 2023

(2022: $62.6m)

A$725m

Spent with Indigenous businesses in

Australia in 2023

(2022: A$565m)

Governments

Governments – national, state and provincial,

and local – are important stakeholders for our

business. They regulate our operations, are

among our commercial partners, and receive

revenue from our taxes and royalties. Our

economic contribution can be significant for

national budgets and local development

priorities, such as job creation and skills

training. We engage with officials on issues

such as how we explore, mine and process ore;

conditions of land tenure; health, safety and

environment; taxation; intellectual property;

competition and foreign investment; data

privacy; conditions of trade and export; and

infrastructure access.

$76bn

Paid in taxes and royalties globally over the

past ten years

$4.6bn²

Corporate tax paid in 2023

(2022: $6.9bn)

$4.1bn²

Corporate tax paid in Australia in 2023

(2022: $6.1bn)

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 2023 rounded to nearest 1,000.

2.When combined with royalties and other taxes, and with our share of taxes and royalties paid by equity accounted units, this

resulted in payments to governments of around $8.5 billion (2022: $10.8 billion), including around $6.5 billion paid in Australia

(2022: $8.5 billion).

12 Annual Report on Form 20-F 2023 | riotinto.com

Investors

Our investors include pension funds,

global fund managers, bondholders,

and tens of thousands of individuals

around the world, including approximately

34,000 Rio Tinto employees.

It is important that we understand our investors’

needs and their vision for the company. We

therefore communicate and engage extensively

with them throughout the year, both in person

and through virtual forums across multiple

jurisdictions. In addition to our annual general

meetings in the UK and Australia, we also held

our 2023 Investor Seminar in Sydney, where

our Executive Committee provided an update

on our progress against our strategy, our

Simandou project and how we are advancing

our decarbonisation program.

$7.1bn

Total dividends declared to shareholders

(2022: $8.0bn)

34,000

Rio Tinto employees own shares

in the company1

(2022: 30,000)

Customers

Our customers’ needs are central to our

operational decision making. Using the insights

generated from everything we buy, sell and

move around the world, our Commercial team

works closely with customers to ensure we

deliver products that meet their specific

requirements. Periodically, we ask our

customers for their feedback via a survey and

the insights help us deliver new and better

products and services. Where possible, we

partner to co-develop solutions that support our

environmental, social and governance

commitments. For example,

in 2023 we significantly expanded our

low-carbon portfolio by forming the Matalco

joint venture to produce and market recycled

aluminium in North America.

1,900

Customers across multiple industries

and countries

$54.0bn

Consolidated sales revenue in 2023

(2022: $55.6bn)

543Mt CO2e

Scope 3 emissions from the processing

of our products

(2022: 549Mt CO2e)

Suppliers

Engaging with suppliers is an important way in

which we can have a positive impact on

communities. We partner with, and help

develop, local businesses where we operate,

so they can share in our success. Having

good relationships with our suppliers also

helps us take part in technological and market

developments, and we continually strive to

improve our supplier experiences. As with our

customers, we periodically ask our suppliers to

share their feedback in a  survey to better

understand how we can develop our

collaboration. We work closely with our

suppliers to create innovative partnerships,

such as our partnership with Neste and Rolls-

Royce that resulted in our Boron site in

California becoming the first open pit mine to

operate heavy machinery running entirely on

renewable diesel.

$20.8bn

Spent with suppliers globally in 2023

(2022: $22.5bn)

26Mt CO2e

Scope 3 emissions from all procurement

(2022: 26Mt CO2e)

1.Shareholders, primarily through myShare, our global employee share plan.

Western Range spends

A$1 billion with WA

businesses

We spend billions of dollars with local

suppliers across Western Australia and the

Pilbara every year, helping support thriving

communities across the State by providing

local jobs for local people.

Western Australian businesses have so far

been awarded contracts totalling A$1 billion as

construction progresses at our Western Range

mine in the Pilbara, a joint venture together

with China Baowu Steel Group.

Construction at Western Range, which will

help sustain production from our existing

Paraburdoo mining hub, started in 2023 and is

expected to support around 1,600 jobs.

For more information about our local procurement strategy see riotinto.com/sustainableprocurement.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 13

Strategic context

Our strategy is informed by a deep analysis of the interplay of global megatrends, explored

through the lens of plausible scenarios. These set the context for our industry and

underpin our portfolio choices and how we operate. Our success relies on our ability to

strengthen our resilience while building partnerships and capabilities that enable us to

grow profitably.

Our scenario approach We use global scenarios in our strategy and capital allocation processes to stress test our portfolio and investment decisions under alternative macroeconomic settings. Our scenario framework focuses on two prevailing forces: the speed of global economic growth and the trajectory of climate action, each heavily influenced by global geopolitics and governance. Our central reference case commodity forecasts and valuations are informed by a blend of our two core scenarios (Competitive Leadership and Fragmented Leadership). These are used to derive critical accounting estimates and are included as inputs for impairment testing; estimating remaining economic life for units of production, depreciation and discounting; and closure and rehabilitation provisions. Further detail is provided in the “Impact of climate change on the Group” section to the financial statements on pages 162-165. We use additional scenarios (including our Aspirational Leadership scenario, which provides our view of a pathway aligned with 1.5°C by 2100) to further stress test decisions and assess potential risks to our portfolio. Our two core scenarios Competitive Leadership reflects a world of high growth and stronger climate action, particularly after 2030, with change driven by policy and competitive innovation. A proactive reform environment encourages business innovation and helps boost investment and productivity. This allows global GDP to continue growing at near recent historical levels with an increasing contribution from India and other developing countries. Fragmented Leadership represents a world where economic growth and climate action are constrained by ineffective policy and rising social and geopolitical tensions. In this world, investment in new technologies slows and their global adoption is highly inconsistent. This, combined with more significant climate damage, results in weaker long-term productivity growth.

For more information about our scenarios, methodology and portfolio implications see pages 47-48.

New industrial policies and

regional competition

In the last two years, we have entered a new

era of industrial policies characterised by

increasing government intervention in the

market and unprecedented levels of subsidies

and policy support, specifically tailored

towards de-risking supply chains and

supporting the energy transition.

Faced with inflationary pressures and

macroeconomic uncertainty, regional and

national governments are attempting to

balance different societal choices, from

accelerating decarbonisation to strengthening

local manufacturing and enhancing supply

security. This has created an increasingly

fragmented and competitive industrial and

climate policy landscape.

Oyu Tolgoi copper-gold mine, Mongolia.

Industrial policies are becoming an

increasingly important determinant of

commodity prices, regional premiums and

project economics.

Policies designed to accelerate the energy

transition are bolstering demand growth for

essential materials such as aluminium, copper

and lithium. To mitigate supply bottleneck risks

and support reindustrialisation, governments

are also promoting the development of new

mining and processing (smelting and refining)

projects via financing or regulatory support.

While this is creating new growth opportunities

for existing producers, it is also incentivising

competition and could result in increasing

risks, such as tighter trade barriers and

resource nationalisation, as value chains

reconfigure.

14 Annual Report on Form 20-F 2023 | riotinto.com

Energy transition and climate

action

While global efforts to tackle climate change

have continued, the long-term pledges made

by governments and companies still fall short

of what is required to reach net zero emissions

by 2050, to limit the global temperature rise to

1.5°C above pre-industrial levels.

In response, new government policies

and initiatives, such as the US’s Inflation

Reduction Act (IRA), the EU’s Carbon Border

Adjustment Mechanism (CBAM) and Australia’s

Safeguard Mechanism, have been implemented

to support decarbonisation and tackle climate

change.

While these policies are helping accelerate

regional deployment of renewables and

fossil fuel alternatives, several industries still

face significant technology and capital

constraints. This is particularly apparent for

continuous, energy-intensive processes

requiring both large-scale renewables and

grid-scale firming solutions.

As the energy transition progresses,

long-standing materials supply chains will be

reconfigured, creating opportunities and risks

for metals and mining participants. Given

current technology and regulatory hurdles,

processes requiring firm power, such as

aluminium and steel production, will prize

access to hydroelectricity or continue to rely

on nuclear or fossil fuel-based electricity to

offset variability in wind and solar energy.

Existing operations with access to hydropower

could see significant cost advantages,

particularly if carbon penalties increase. By

contrast, industries that can use intermittent

power or green hydrogen1 will have an

advantage in areas rich in solar and wind

resources.

ESG priorities and evolving

customer needs

Consumers are becoming more

ESG-conscious in their purchasing

behaviours, taking into consideration a

range of themes beyond carbon, including

biodiversity, water, supplier ethics and

integrity, transparency and impacts of

operations and broader value chains on

local communities and society.

With the technology challenges and long

development timelines associated with

decarbonising large-scale processes, 

customers in developed markets are

increasingly focusing on securing recycled

materials as they look to reduce their

value chain emissions as well as their

environmental and social footprints.

Community engagement, Simandou, Guinea.

This trend is being further supported by new

industrial policies that have set recycled

content targets and ESG performance hurdles

to access government support.

While recycling presents a direct risk to

primary metal demand growth, it also offers

unique growth and commercial opportunities

for mining companies that have downstream

processing capabilities. These companies can

meet customers’ diverse needs by providing

both high-quality primary products (essential

for some applications) and recycled products

with reduced footprints.

1.Green hydrogen is produced using renewable energy.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 15

Our strategy

Climate change and the low-carbon transition are at the heart of our strategy. We aim to strengthen

our resilience to the physical effects of climate change and secure new opportunities and partnerships

created by changing market fundamentals. Our strategy is designed to deliver strong returns and

growth options while reducing the environmental and social impacts of our business and broader

value chains.

Our strategy has three pillars

Grow in materials essential for the

energy transition

The energy transition will create significant

additional demand for copper, aluminium,

lithium and a range of other critical minerals.

We aim to grow in these commodities as well

as in the supply of high-grade, high-quality

iron ore, essential for low-carbon

steel production.

Accelerate the decarbonisation

of our assets

Due to the scale of our mining and processing

activities, we have significant Scope 1 and 2

emissions (32.6Mt CO2e). We are working

with stakeholders to find commercial and

technological solutions to reduce these by

50% (relative to 2018 levels) by 2030. We

anticipate a total capital spend on

decarbonisation of $5-6 billion by 20301.

Develop products and technologies

that help our customers decarbonise

Our Scope 3 emissions were 578Mt CO2e

in 2023, over 94% of which was from the

downstream processing of our products. We are

partnering with our customers and suppliers and

investing in research and development to

decarbonise our broader value chains and bring

forward their targets, to achieve net zero

processing emissions by 2050.

1.Excluding the purchase of offsets.

Our four objectives

Our strategy is centred around our four objectives: to be the best operator, to achieve impeccable ESG

credentials, to excel in development and to strengthen our social licence. These essential components will

help improve our productivity, reduce capital intensity and assist us in becoming a partner of choice for a

range of stakeholders globally.

Our culture is a key enabler of our strategic

ambitions. It guides us on the journey to

best operator, makes us a better partner and

helps us solve problems as we work towards

net zero.

By building an environment of trust

where everyone feels safe, respected and

empowered, we can attract and retain curious

people who care about their work and

colleagues and are courageous about finding

better ways to do things. This is how

we will deliver on our purpose.

Best operator

We aim to improve our operational

performance by identifying and replicating best

practices across our portfolio and empowering

our people to make positive changes.

Impeccable ESG

We will strive to align our business priorities

with society’s expectations and ensure

sustainability considerations are at the

core of every decision we make.

Excel in development

We will expand and progress our pipeline

of growth opportunities and build capabilities

and partnerships to execute projects

and establish a strong track record of capital-

efficient delivery.

Social licence

We will build meaningful and enduring

relationships and partnerships with our

stakeholders by listening, learning and

respecting diverse perspectives.

16 Annual Report on Form 20-F 2023 | riotinto.com

Progressing our strategy

Grow in materials essential for the energy transition
High-grade iron ore –Progressed the Simandou high-grade iron ore project in Guinea with our partners. We announced plans to invest $6.2 billion1 (Rio Tinto share) on mine, port and rail infrastructure development. Production is expected to ramp up over 30 months from 2025 to a capacity of 60 million dry tonnes2 annually (27 million dry tonnes Rio Tinto share). –Approved $77 million for a pre-feasibility study to progress the development of the Rhodes Ridge project in the East Pilbara in Western Australia, one of the world’s most attractive undeveloped iron ore deposits. Aluminium –Acquired a 50% equity stake in Matalco from Giampaolo Group for $738 million. The Matalco joint venture combines the strengths of North America's largest primary and secondary aluminium producers to meet growing demand for low-carbon products. –Announced we will invest $1.1 billion to expand our AP60 aluminium smelter equipped with low-carbon technology at the Complexe Jonquière with financial support from the Quebec government.	Copper –Started production from the Oyu Tolgoi underground mine in Mongolia, which will make Oyu Tolgoi one of the most important producers of copper in the world. –Approved investment to significantly increase production from underground mining at Kennecott. Production is expected to deliver around 250 thousand tonnes3 of additional mined copper over the next ten years (2023-2033). –Formed a joint venture with First Quantum Minerals to unlock the development of the La Granja project in Peru, one of the largest undeveloped copper deposits in the world. Minerals –Progressed development of a three thousand tonne per annum lithium carbonate starter plant at the Rincon lithium project with production expected by the end of 2024. –Acquired the high-grade BurraTM Scandium Project in New South Wales, Australia. The project could produce up to 40 tonnes of scandium oxide per year.
Accelerate the decarbonisation of our assets
Decarbonisation spend –Spent a total of $425 million on decarbonisation in 2023 (2022: $299 million). We estimate a total capital spend of $5-6 billion over the period 2022-2030, including $1.5 billion cumulative spend over the period 2024-2026. Pacific Operations repowering –Signed a power purchase agreement (PPA) to buy 1.1GW of renewable energy from the Upper Calliope Solar Farm project which could provide part of a solution to repower our three Gladstone production assets. Renewable energy –Constructed a 5MW solar plant pilot project at Kennecott Copper. –Approved, subject to regulatory approvals, a 12.4MW solar photovoltaic system and a 2.1Mwh battery storage system via long- term PPA for Amrun operations. –Signed a memorandum of understanding (MoU) with the Yindjibarndi Energy Corporation (YEC) to explore opportunities to collaborate on renewable energy projects on Yindjibarndi Country in the Pilbara.	Diesel transition –Advanced our diesel transition at Boron and Kennecott. Boron became the world’s first open-cut mine to fully transition 100% of its heavy machinery to renewable diesel. Alumina processing –Approved the Yarwun Hydrogen Calcination Pilot Demonstration Program. –Progressed a double digestion pre-feasibility study at Queensland Alumina Limited (QAL). Minerals processing –Commissioned the BlueSmeltingTM demonstration plant at Rio Tinto Iron and Titanium Quebec Operations, with the first tonne of pre-reduced ore produced. The project is part of a partnership with the Government of Canada. Nature-based solutions –Continued to develop pilot projects in Madagascar and progressed pre-feasibility and feasibility work for opportunities in South Africa, Guinea, US and Argentina.
Develop products and technologies that help our customers decarbonise
Steel value chain decarbonisation –Progressed partnerships on various low-carbon pathways, including our collaboration with the world’s largest steel producer – Baowu. –Completed a feasibility study for the BioIronTM Continuous Pilot Plant and secured a location, completed an Electric Smelting Furnace concept study with BlueScope, and progressed design of the Baowu Meishan microwave lump drying pilot plant. Shipping decarbonisation –Lowered shipping emissions intensity by 37% (relative to 2008 baseline) and introduced five liquified natural gas vessels into the fleet in 2023. –Completed a 12-month biofuel trial.	Aluminium value chain decarbonisation –ELYSIS started commissioning activities following completion of construction work and expects to start the first 450kA cell in 2024. –Defined potential areas of collaboration to help decarbonise alumina refining with customers, representing 47% of global bauxite sales. Procurement –Completed a study to understand the sources of our procurement- related emissions.

1.Subject to the remaining conditions being met including receipt of regulatory approvals.

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.The production target of around 250 thousand tonnes of additional mined copper over the next ten years (2023 to 2033) at Kennecott was previously reported in a release to the Australian

Securities Exchange (ASX) dated 20 June 2023 titled “Rio Tinto invests to strengthen copper supply in US”. Rio Tinto confirms that all material assumptions underpinning that production target

continue to apply and have not materially changed.

For more information about our projects see the Portfolio management section on pages 30-31.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 17

Progressing our four objectives

Best operator

Focus

Safety and operational performance.

Progress in 2023

Safety

Safety is our top priority. Our focus is on eliminating

fatalities, preventing catastrophic events and

reducing injuries. While we had zero fatalities at our

managed operations in 2023, tragically four

colleagues died in a plane crash while travelling to

our Diavik mine in January 2024. Our all-injury

frequency rate (AIFR) was 0.37 in 2023 

(compared to 0.40 in 2022). We are strengthening

our safety maturity model (SMM) by including

health and environment risks, and we are gaining

greater insight into the culture at each site so we

can take actions to improve.

Operational performance

We continued rolling out the Safe Production

System (SPS) across our assets, engaging our

people to identify issues and improvement

opportunities and develop and share best

practices across the Group.

We have deployed SPS at ~60% of our sites to

date, with implementation at various stages of

maturity. Key performance highlights include a 5

million tonne uplift in iron ore production and a 25%

improvement in AIFR globally in the second half of

2023 (when compared to the first half), at sites

where SPS has been deployed.

In 2023, we announced plans to increase

annual iron ore capacity at Gudai-Darri in

Australia by seven million tonnes to 50 million

tonnes at a cost of $70 million through

incremental productivity gains.

We also initiated a number of projects designed

to improve the Group’s asset management

performance. These included building up

capabilities in our Asset Management Centre of

Excellence, improving critical risk maintenance

plans and spare parts programs and bolstering

shutdown support.

Future priorities

Safety

In 2024, we will strengthen the way we manage

our critical risks, our primary fatality elimination

tool which helps ensure that controls are in place

and working where there is a fatal risk. We will

continue to enhance the understanding and

impact of critical risk management by focusing on

quality conversations and verifications at our

global operations.

We have strong standards and processes to

approve air operators, including regular audits

and engagements to make sure aviation safety

systems match our expectations of safety and

care for our people. In 2024, we will continue

to work with all our sites to actively review

compliance with aviation safety tools and controls

to provide further assurance on top

of our existing processes.

We will also evolve SMM and evaluate its impact

on individuals’ mindsets, rather than simply

verifying safety systems and processes. This will

be strengthened through assessor training, and

how we perform SMM assessments at our sites.

Operational performance

The rollout of the SPS will continue in 2024.

Our focus will be on working with our product

groups to double down on impacts at existing

high-value sites, rather than new deployment

launches. We will also work on significant

maturity uplift of best practices, specifically

problem solving, and completion of site-wide

deployment and end-to-end systems. We will

continue to work with asset management to

integrate efforts to rapidly bring assets back to

health so they can deliver industry-best

performance.

Relevant KPIs

All-injury frequency rate

Underlying earnings & underlying EBITDA

Net cash generated from operating activities

Underlying return on capital employed 

Free cash flow

Net (debt)/cash

Scope 1 and 2 greenhouse gas emissions

Gender diversity

Total shareholder return

Impeccable ESG

Focus

Decarbonisation, nature, water and waste

management, closure, communities, workforce

diversity, culture and leadership. 

Progress in 2023

Environment

We continued to progress our six large carbon

abatement programs focused on repowering

our Pacific Aluminium operations, renewables,

ELYSISTM, alumina process heat, minerals

processing and diesel transition. We also

formed new partnerships with our customers

to reduce value chain emissions.

We also identified several opportunities for

investment in large-scale nature-based solutions

with the potential to halt and reverse nature loss,

support positive, sustainable change for

communities and address climate change.

In 2023, we progressed a number of

innovative projects designed to reduce our

environmental footprint and create new

revenue streams through the adoption of more

circular practices. These spanned the

extraction of by-products, recycling and finding

new life for our closure sites.

Social

Our work in 2023 focused on delivering our new

communities and social performance strategy,

underpinned by updated standards, targets and

vision for the business. We continued to work on

improving our approach to engage and partner

with our host communities and better manage

cultural heritage. In 2023, we completed an

independent Cultural Heritage Audit, providing a

systematic review of all the heritage sites that we

manage worldwide.

Governance

In 2023, we continued to drive leadership,

management and ethics and compliance

improvements, with a focus on building a

thriving culture, implementing the learnings

from the Everyday Respect Report, and

improving our transparency and practices.

In 2023, the Business Conduct Office (BCO)

launched Care Hub, an independent care unit

providing support, care and resolution options

to anyone affected by harmful behaviours.

Care Hub currently supports matters reported

through myVoice.

72% of senior leaders have now completed

Voyager, our senior leadership program. We

also increased the offering of the Leading

Sustainable Corporations and Leader as

Coach programs to further support

development and our cultural journey.

Future priorities

Environment

We will define our next round of climate and

nature targets in 2024, drawing on knowledge

and experience from across the business and

from our external partners, to develop more

holistic commitments across these key areas.

We will continue to progress our emissions

reduction targets to build upon those currently in

place, considering learnings from the approach

we have taken with our water targets.

Social

Guided by our 2026 Communities and Social

Performance Targets, a core 2024 focus is for

our people in high human rights risk roles to

complete job-specific and general human

rights training. We will also continue to work

together with communities to manage and

protect heritage and find ways to deepen the

impact of our social investment through

strategic, outcomes-focused partnerships.

Governance

We will continue our cultural journey towards an

inclusive and diverse workplace led by our values

of care, courage and curiosity focusing in

particular on safety, leadership and employee

listening. In 2024, we will be working to clarify our

measures to demonstrate progress.

For more information about our ESG progress see pages 40-77.

Relevant KPIs

All-injury frequency rate

Total shareholder return

Scope 1 and 2 greenhouse gas emissions

Gender diversity

18 Annual Report on Form 20-F 2023 | riotinto.com

Excel in development

Focus

Project development, future options (pipeline

projects, exploration and M&A), technology

development and deployment.

Progress in 2023

Project development

We have continued to advance a number of

projects across the business (see page 17),

including making significant progress at the

Simandou iron ore project in Guinea in

collaboration with our joint venture partners.

In our iron ore business, Gudai-Darri reached

nameplate capacity in the second quarter with

the current wave of replacement mines like

Robe Valley in production and Western Range

commencing construction.

In our aluminium business, we announced

investment in a significant AP60 expansion.

We also acquired a 50% equity stake

in Matalco from Giampaolo Group for

$738 million to become a leader in recycled

aluminium supply in North America.

In our copper business, we achieved first

sustainable production from the Oyu Tolgoi

underground mine with associated

infrastructure ramping up on schedule. Work

has also progressed to expand underground

operations at Kennecott. 

Pipeline projects

We advanced studies and permitting at a

range of greenfield projects including

Resolution and Winu, and formed a joint

venture with First Quantum to help unlock the

La Granja copper project.

Exploration

We also continued to fill and progress our

pipeline of exploration opportunities. We

entered a joint venture (Nuevo Cobre) with

Corporación Nacional del Cobre de Chile

(Codelco) to explore and potentially develop

copper assets in Chile’s prospective

Atacama region.

Technology

We continued to progress our technology

roadmap while building our technical

capabilities and partnership networks. In 2023,

we progressed 130 priority research and

development projects, including 32 growth-

focused projects on discovering new ore

bodies, reducing capital intensity and

unlocking new revenue streams.

Future priorities

We will continue to explore new approaches,

technologies and partnership opportunities to

discover, progress and develop projects to

support future growth in close consultation

with communities.

We will manage our pipeline of opportunities

to deliver high-quality growth options, with a

strong focus on materials needed in a

decarbonising world.

Future priorities include development of the

mine, rail and port infrastructure for Simandou

in Guinea in collaboration with our partners,

construction of the Rincon lithium starter plant

in Argentina, management of key closure

projects at Argyle and Gove and optimisation

of the next tranche of replacement mines in

the Pilbara.

We will continue to explore and evaluate new

mining, processing, technology and renewable

energy opportunities to ensure we maintain a

high-quality portfolio of short-, medium- and

long-term growth options that can deliver

strong and resilient cash flows throughout the

cycle.

For more information about our capital projects and future options see pages 30-31.

Relevant KPIs

Total shareholder return

Underlying return on capital employed

Free cash flow

Net (debt)/cash

Scope 1 and 2 greenhouse gas emissions

Social licence

Focus

Adopting a multi-stakeholder approach for

external engagements to deepen connections

and build mutually beneficial partnerships.

Building cultural capability and competency

across the Group to ensure we fully understand,

value and partner with our host communities.

Progress in 2023

Communities and partners

In 2023, we piloted a Group-wide approach to

community perception monitoring that brings

the voices of communities into the business,

supporting deeper, more effective and data-

driven social performance.

We also signed an MoU with the YEC to

explore opportunities to collaborate on

renewable energy projects on Yindjibarndi

Country in the Pilbara region of Western

Australia.

The Iron Ore Company of Canada (IOC) and

the Naskapi Nation of Kawawachikamach

signed an agreement to establish a mutually

beneficial relationship based on dialogue,

collaboration and trust over the coming

decades. This socio-economic agreement

aims to create opportunities for greater

participation by the Naskapi People in IOC’s

activities through training and development,

employment, collaboration on environmental

projects, and procurement.

Future priorities

Communities and partners

Our future priorities are informed by our 2026

Communities and Social Performance (CSP)

targets which help us monitor progress toward

the core objectives of our CSP strategy. Our

targets guide progress across the business as

well as for individual assets, which will

continue to maintain local targets and metrics,

developed in consultation with local

communities.

In 2024, a core focus is on ensuring all

employees in high human rights risk roles

complete job-specific and general human rights

training. We will also continue to progress longer

term targets including by 2026 for:

–all sites to co-manage cultural heritage with

communities and knowledge holders

–70% of total community investment to be

through strategic, outcomes-focused

partnerships.

Understanding and acting on the perceptions of

communities who host our operations is

essential. We will roll out our new community

perception monitoring program that we piloted in

2023 to all our assets throughout 2024 and 2025.

We continue to find better ways to work

with communities and Indigenous Peoples,

particularly in how we protect heritage.

Our approach aims to enhance our

understanding and appreciation of cultural

heritage and ensure the voices of communities

inform our planning and decision making.

For more information about our community engagement see pages 66-70.

Relevant KPIs

Total shareholder return

Scope 1 and 2 greenhouse gas emissions

Gender diversity

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 19

Key performance indicators

We use a range of financial and non-financial metrics to measure Group performance against our four

objectives: to be best operator; to achieve impeccable environmental, social and governance (ESG)

credentials; to excel in development; and to strengthen our social licence.

Alignment to our four objectives and associated risks key

l Best operator l Impeccable ESG l Excel in development l Social licence

All-injury frequency rate

(AIFR)

per 200,000 hours worked

Alignment to our four objectives and associated

risks

ll

Definition

We define AIFR as the number of injuries per

200,000 hours worked by employees and

contractors at the operations that we manage.

It includes medical treatment cases, restricted

workday and lost-day injuries.

Relevance to strategy

The safety and wellbeing of our employees

and contractors is our number one priority.

We are committed to having a safe work

environment and our focus is on eliminating

fatalities, preventing catastrophic events and

reducing injuries. We continue to implement

our safety maturity model (SMM). By

implementing our systems, including SMM,

critical risk management (CRM) and the Safe

Production System (SPS), we are ensuring we

advance our safety culture and foster both

physical and psychological safety.

We continue to share learnings and

strengthen our partnerships with industry and

associated committees (such as the

International Council on Mining and Metals),

contracting partners and local communities

to improve health, safety and wellbeing

outcomes.

Link to executive remuneration

AIFR and SMM are included as performance

metrics in the safety component of the short-term

incentive plan (STIP) (see page 130-133).

Our performance in 2023 and

forward plan

Our AIFR was 0.37 in 2023, an improvement

from 2022 (2022: 0.40). While we had no

fatalities at managed operations in 2023,

tragically four colleagues died in a plane crash

travelling to our Diavik mine in January 2024.

We will renew focus on our critical risk

management program. We will also work on

embedding enhancements to the SMM.

Total shareholder return

(TSR)¹

measured over the preceding five years

(using annual average share price)

Alignment to our four objectives and associated

risks

llll

Definition

TSR is a combination of share price

appreciation (using annual average share

price) and dividends paid and reinvested to

show the total return to the shareholder over

the preceding five years.

Relevance to strategy

Our strategy aims to maximise shareholder

returns through the commodity cycle, and TSR

is a direct measure of that.

Link to executive remuneration

TSR is reflected in the long-term incentive

plan (LTIP), measured equally against a

mining based index (the EMIX Global Mining

Index historically and from 1 August 2023

the S&P Global Mining Index) and a broader-

based index of large global corporates

(the MSCI World Index) (see page 134-135).

Our performance in 2023 and

forward plan

TSR performance over the five-year period

was driven principally by movements in

commodity prices and changes in the global

macro environment. Rio Tinto significantly

outperformed both the EMIX Global Mining

Index and the MSCI World Index over the five-

year period.

We will continue to focus on generating free

cash flow from our operations. This allows us

to return cash to shareholders (short-term

returns) while investing in the business

(long-term returns).

Underlying return on capital

employed (ROCE)

%

Alignment to our four objectives and associated

risks

ll

Definition

Underlying ROCE is a non-IFRS measure

defined as underlying earnings excluding net

interest divided by average capital employed

(operating assets). For more information and a

reconciliation of underlying ROCE to the

nearest comparable IFRS measure, see

Alternative Performance Measures (pages 

289-294).

Relevance to strategy

Our portfolio of low-cost, long-life assets

delivers attractive returns throughout the cycle

and has been reshaped significantly in recent

years. Underlying ROCE measures how

efficiently we generate profits from investment

in our portfolio of assets.

Link to executive remuneration

Underlying earnings, as a component of

underlying ROCE, is included in the STIP.

In the longer term, underlying ROCE also

influences TSR, which is included in the LTIP

(see pages 134-135).

Our performance in 2023 and

forward plan

Underlying ROCE decreased five percentage

points to 20% in 2023, reflecting the decrease

in underlying earnings driven by lower

commodity prices, and an increase in capital

employed due to capital expenditure and

acquisitions.

We will continue to focus on maximising

returns from our assets over the short,

medium and long term. We will invest with

discipline to strengthen our operations while

delivering growth in a decarbonising world.

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 five years. This is consistent with the

methodology used for calculating the vesting outcomes for Performance Share Awards (PSA). The data presented in this chart accounts for the dual corporate structure of Rio Tinto.

20 Annual Report on Form 20-F 2023 | riotinto.com

Underlying earnings¹ and

underlying EBITDA

$ millions

Underlying earnings

Underlying EBITDA

Alignment to our four objectives and associated

risks

l

Definition

Underlying earnings and underlying EBITDA

are non-IFRS measures.

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. For more information on these

exclusions and a reconciliation to the nearest

IFRS measures refer to Alternative

Performance Measures (pages 289-294).

Underlying EBITDA is a segmental

performance measure and represents profit

before tax, net finance items, depreciation and

amortisation. Exclusions from underlying

EBITDA and a reconciliation to the nearest

IFRS measures can be found in note 1.

Relevance to strategy

These financial KPIs measure how well we are

managing costs, increasing productivity and

generating the most revenue from each of

our assets.

Link to executive remuneration

Underlying earnings are reflected in the STIP.

In the longer term, both measures influence

TSR, which is the primary measure for the

LTIP (see pages 134-135).

Our performance in 2023 and

forward plan

Underlying earnings of $11.8 billion were

$1.6 billion lower than in 2022. Underlying

EBITDA of $23.9 billion was $2.4 billion lower

than in 2022. The 9% decrease in underlying

EBITDA resulted from lower commodity prices

and higher operating unit costs partially offset

by improvements in sales volumes across our

portfolio.

We remain focused on cost control, in

particular maintaining discipline over fixed

costs to drive attractive margins and returns

across our portfolio.

1.Comparative information for year 2021 and 2022 has been

restated to reflect the adoption of narrow scope

amendments to IAS12 “Income Taxes”; refer to page 166

for details.

Net cash generated from

operating activities

$ millions

Alignment to our four objectives and associated

risks

l

Definition

This KPI 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.

Relevance to strategy

This KPI measures our ability to convert

underlying earnings into cash.

Link to executive remuneration

Net cash generated from operating activities is

included in the STIP. In the longer term, the

measure influences TSR, which is included in

the LTIP (see pages 134-135).

Our performance in 2023 and

forward plan

Net cash generated from operating activities of

$15.2 billion was 6% lower than 2022. This

was primarily driven by price movements for

our major commodities and a modest rise in

working capital.

We continue to focus on effectively delivering

strong and stable cash flows while optimising

the health and performance of our  assets.

Free cash flow

$ millions

Alignment to our four objectives and associated

risks

ll

Definition

Free cash flow is a non-IFRS measure defined

as net cash generated from operating

activities minus purchases of property, plant

and equipment, intangibles, and payments of

lease principal, plus proceeds from the sale of

property, plant and equipment, and intangible

assets. For more information and a

reconciliation of free cash flow to the nearest

comparable IFRS measure see Alternative

Performance Measures (pages 289-294).

Relevance to strategy

This KPI measures the net cash returned by

the business after the expenditure of

sustaining and growth capital. This cash can

be used for shareholder returns, reducing debt

and other investment.

Link to executive remuneration

Free cash flow is included in the STIP. In the

longer term, the measure influences TSR,

which is included in the LTIP (see pages

134-135).

Our performance in 2023 and

forward plan

Free cash flow decreased by $1.3 billion to

$7.7 billion in 2023, primarily due to the

decrease in net cash generated from

operating activities and increases in sustaining

and growth capital expenditure.

We continue to focus on effectively delivering

strong and stable cash flows while optimising

the health and performance of our  assets.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 21

Net (debt)/cash

$ millions

Alignment to our four objectives and associated

risks

ll

Definition

Net (debt)/cash is a non-IFRS measure

defined as total borrowings plus lease

liabilities less cash and cash equivalents

and other liquid investments, adjusted for

derivatives related to net (debt)/cash (see note

19 of the financial statements). For more

information and a reconciliation of net (debt)/

cash to the nearest comparable IFRS

measure, see Alternative Performance

Measures (pages 289-294).

Relevance to strategy

This KPI measures how we are managing

our balance sheet and capital structure.

A strong balance sheet is essential for

giving us the flexibility to take advantage

of opportunities as they arise, and for returning

cash to shareholders.

Link to executive remuneration

Net (debt)/cash is, in part, an outcome of free

cash flow, which itself is reflected in the STIP.

In the longer term, net (debt)/cash influences

TSR, which is reflected in the LTIP (see pages

134-135).

Our performance in 2023 and

forward plan

Net debt remained stable at $4.2 billion.

This included free cash flow of $7.7 billion,

offset by dividends of $6.5 billion and the

$0.7 billion acquisition of Matalco1.

We continue to focus on effectively delivering

strong and stable cash flows while optimising

the health and performance of our  assets.

Scope 1 and 2² greenhouse

gas emissions

(equity Mt CO2e)

Alignment to our four objectives and associated

risks

llll

Definition

We measure our Scope 1 and 2 greenhouse

gas emissions on an equity basis. 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.

Relevance to strategy

Climate risks and opportunities have formed part

of our strategic thinking and investment

decisions for over two decades. The low-carbon

transition is at the heart of our business strategy.

We focus on growth in the materials that enable

the transition, decarbonising our operations and

partnering with our customers to decarbonise

our value chains.

Link to executive remuneration

Climate change is included in our ESG metrics

for executive remuneration with a weighting of

10% of the STIP (see page 130). The carbon

abatement target set for 2023 was 10Mt CO2e.

A total of 29 projects progressed though a

development stage during the year, leading to

an above target performance of 12Mt CO2e

abatement expected by 2030. We have put

forward proposals to incorporate

decarbonisation related performance

measures into our LTIP as part of our 2024

Remuneration Policy. See page 134-135 for

further information.

Our performance in 2023 and

forward plan

Our Scope 1 and 2 emissions were 32.6Mt

CO2e in 2023. This is 6% below our adjusted

2018 baseline of 34.5Mt CO2e and slightly

below our 2022 adjusted emissions of 32.7Mt

CO2e (adjusted for acquisitions). Abatement

delivered by our projects in 2023 exceeded

emissions growth from higher production

giving a slight reduction in emissions on a like

for like basis. Our 2023 emissions were

slightly higher than our actual 2022 emissions

total of 32.3Mt CO2e due to the recent

acquisitions of additional equity in OT and

MRN. By 2025, we expect to have made

financial commitments to abatement projects

that will achieve more than 15% of Group

emissions. However, it is expected our actual

emissions abatement will lag this.

A summary of our Climate Action Plan can be

found on pages 52-55 of this Annual Report as

well as in our 2023 Climate Change Report.

Gender diversity

representation of women within our workforce

Alignment to our four objectives and associated

risks

lll

Definition

Includes our total workforce based on

managed operations (excludes the Group’s

share of non-managed operations and

joint ventures)4.

Relevance to strategy

Inclusion and diversity are imperative for

the sustainable success of the business.

Our sustained performance and growth rely on

having workforce diversity that is

representative of the communities in which we

operate and having a workplace where people

are valued for who they are and encouraged

to contribute to their full potential.

Link to executive remuneration

In 2023, our aspiration was to increase the

proportion of women in our workforce by two

percentage points. This aspiration was

included in our strategic scorecard for

executive remuneration, with a 5% weighting

of the STIP. For more information

see pages 130-131.

Our performance in 2023 and

forward plan

In this first year of the target, our

representation of women at Rio Tinto

increased from 22.9% to 24.3%, a 1.4

percentage point increase. We saw

improvements across all levels of the

organisation with senior leaders increasing

from 28.3% to 30.1%, and operations and

general support increasing from 16.2%

to 17.7%.

Our target to increase the proportion of

women in our workforce year-on-year creates

an important focus.

We are focused on implementing the

recommendations from the Everyday Respect

Report and we are confident that this will

improve both the attraction and retention of

women and other diverse

groups to Rio Tinto. For more information

about the Everyday Respect initiative see

riotinto.com/everydayrespect.

1.Subject to usual closing adjustments.

2.In 2023, we improved our carbon emissions reporting and now use the market-based method as our primary measure for assessing performance against our emissions targets. Further detail on

this change in reporting and the implications for our emissions baseline is available in our 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology. Our adjusted scope 1 and 2

emissions (adjusted for acquisitions) have been disclosed for 2022.

3.In 2020, we updated our definition of our total workforce to include those employees who were unavailable for work (eg on parental leave) and temporary contractors. Note: less than 1% of the

workforce gender is undeclared.

4.Baseline reset with definition for 2020 to 2023 gender diversity. 

Key performance indicators continued

22 Annual Report on Form 20-F 2023 | riotinto.com

Chief Financial

Officer’s statement

"In 2023, our financial results were resilient,

driven by an improvement in our operational

performance. As we shape our portfolio for the

future, we will continue to allocate capital with

discipline."

Uplift in operational performance

drives resilient financial results

In 2023, the Group’s total copper equivalent

production increased by just over 3% from

2022. This reflected the Gudai-Darri mine in

the Pilbara reaching its nameplate capacity

and deployment of our Safe Production

System. In addition, we benefited from our

increased ownership in Oyu Tolgoi as the

underground ramps up and the Kitimat

aluminium smelter returned to full capacity. In

a year in which average commodity prices

declined compared to the prior period, we

maintained our discipline on cost and capital,

leading to net cash generated from operating

activities of $15.2 billion, underlying earnings

of $11.8 billion and profit after tax attributable

to owners of Rio Tinto of $10.1 billion.

We maintained our financial strength, ending

the year with net debt of $4.2 billion, just 1%

higher than the position at the start of the year.

Our balance sheet strength enables us to run

our business consistently and maintain

investment, regardless of where we are in the

cycle. We have chosen 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 capital allocation,

balancing essential capex with

shareholder returns and growth

We will continue to allocate the capital

generated by our operations with discipline

and remain committed to attractive

shareholder returns. We have consistently

applied our financial framework, which has

been in place for more than a decade. It is

straightforward and serves us well,

underpinned by our three priorities. Essential

capex remains the first priority - sustaining

capex to ensure the integrity of our assets,

high-returning replacement projects and

investment for decarbonisation. The second

priority is the ordinary dividend within our well-

established returns policy, where we now have

an eight-year track record of paying out at

60% of underlying earnings. The third involves

testing investment in compelling growth

against debt management and further cash

returns to shareholders.

In 2023, capital expenditure rose by 5% to

$7.1 billion, reflecting the impact of inflation, in

particular on our sustaining capital. We

foresee a disciplined increase in capital

expenditure over the coming years as our

growth projects accelerate and

decarbonisation advances. This is critical to

ensure we have the right portfolio to keep

creating value for decades to come, so we can

benefit from increased demand from both

traditional sources and from the energy

transition. And we have more to come:

exploration and evaluation spend increased to

$1.2 billion, with greenfield spend mainly

focused on copper and lithium, while

evaluation prioritised projects with near-term

investment decisions, including the Simandou

iron ore project in Guinea. We expect

Simandou to become our largest capital

project over the coming years. It will be

constructed and funded by a co-development

partnership that will share the risk and deliver

higher returns than our cost of capital. We

believe that Simandou's high grade, high

quality product will position us well for the

decarbonisation of the steel industry.

Our financial strength means that we can

reinvest for growth, accelerate our

decarbonisation and continue to pay attractive

dividends through the cycle. For 2023, we are

returning 60% of underlying earnings to

shareholders, which equates to a full-year

ordinary dividend of 435 US cents per share,

or $7.1 billion.

Outlook underpins a strong Rio

Tinto for the long term

We are well positioned in an opportunity-rich

world where there has never been greater

demand for what we do, from mining to

processing. The work we are doing today is

creating a stronger Rio Tinto for years to

come.

Net cash generated from operating activities

$15.2 billion

(2022: $16.1 billion)

Profit after tax attributable to owners of Rio

Tinto (net earnings)

$10.1 billion

(2022: $12.4 billion)

Underlying earnings

$11.8 billion

(2022: $13.4 billion)

This is why our strategy is about growing in

the materials the world needs. A strategy that

will ensure Rio Tinto remains strong in the

short, medium and long term with the ability to

invest while always paying attractive returns.

Peter Cunningham

Chief Financial Officer

21 February 2024

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 23

Financial review

The Financial review and Business review for the year ended 31 December 2021 can be found on pages 32 to 39 and pages 42 to 71, respectively,

of our Form 20-F filed with the United States Securities and Exchange Commission on 25 February 2022.

Key financial highlights

At year end	2023	2022	Change
Net cash generated from operating activities (US$ millions)	15,160	16,134	(6)%
Purchases of property, plant and equipment and intangible assets (US$ millions)	7,086	6,750	5%
Free cash flow¹ (US$ millions)	7,657	9,010	(15)%
Consolidated sales revenue (US$ millions)	54,041	55,554	(3)%
Underlying EBITDA¹ (US$ millions)	23,892	26,272	(9)%
Profit after tax attributable to owners of Rio Tinto (net earnings)² (US$ millions)	10,058	12,392	(19)%
Underlying earnings per share (EPS)¹, ² (US cents)	725.0	824.7	(12)%
Ordinary dividend per share (US cents)	435.0	492.0	(12)%
Underlying return on capital employed (ROCE)¹, ²	20%	25%
Net debt¹ (US$ millions)	4,231	4,188	1%

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 289 to 294. Our financial results are prepared in accordance with IFRS — see page 158 for further information.

2.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

Financial performance

Income Statement

Underlying EBITDA

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 289 to 291, respectively.

The principal factors explaining the movements in underlying EBITDA

are set out in this table.

	US$bn
2022 underlying EBITDA	26.3
Prices	(1.5)
Exchange rates	0.6
Volumes and mix	0.4
General inflation	(0.4)
Energy	0.4
Operating cash unit costs	(1.4)
Higher exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects)	(0.3)
Non-cash costs/other	(0.2)
Change in underlying EBITDA	(2.4)
2023 underlying EBITDA	23.9

Resilient financial results, primarily impacted by

commodity price movements

In general, we saw lower prices for our commodities, as supply

improved, outpacing modest demand growth.

Movements in commodity prices resulted in a $1.5 billion decline in

underlying EBITDA overall compared with 2022. This was primarily from

lower pricing for our Aluminium business, driven by London Metal

Exchange (LME) prices, lower premiums and lower alumina pricing.

Higher realised pricing in our Iron Ore business was offset by lower

pricing for copper, diamonds and industrial minerals.

The monthly average Platts index for 62% iron fines converted to a Free

on Board (FOB) basis was 0.5% higher, on average, compared with

2022.

The average LME price for copper was 3% lower, the average LME

aluminium price was 17% lower while the gold price was 8% higher

compared with 2022.

The Midwest premium duty paid for aluminium in the US averaged $512

per tonne, 22% lower than in 2022.

24 Annual Report on Form 20-F 2023 | riotinto.com

Benefit from weaker local currencies in 2023

Compared with 2022, on average, the US dollar strengthened by 4%

against the Australian dollar and by 4% against the Canadian dollar.

Currency movements increased underlying EBITDA by $0.6 billion

relative to 2022.

Improvement in sales volumes but weaker mix

Higher sales volumes across the portfolio increased underlying EBITDA

by $0.7 billion compared to 2022. This was mostly attributable to a 3%

increase in Pilbara iron ore shipments, with the Gudai-Darri mine

reaching full capacity, partly offset by lower portside sales volumes

(down 4%). Higher copper sales were driven by the ramp-up of the Oyu

Tolgoi underground mine. This was partly offset by lower margins

achieved due to our product mix (-$0.3 billion) mainly associated with a

reduced proportion of Aluminium VAP sales and following high quality

diamond sales in 2022.

Impact of inflation offset by lower energy prices

We saw a $0.4 billion benefit to underlying EBITDA on the easing of

energy prices compared to 2022, mainly related to lower diesel prices at

our Pilbara iron ore operations, lower energy prices at our alumina

refineries and aluminium smelters, along with lower fuel prices in our

Marine business. General price inflation across our global operations

resulted in a net $0.4 billion reduction in underlying EBITDA, which

includes a $0.2 billion year-on-year benefit from the impact of inflation

on closure provisions.

Unit cost pressures persist due to temporary

operational factors and weaker markets: some easing

of market-linked raw material prices in second half

We remain focused on cost control, in particular maintaining discipline

on fixed costs, which are expected to be broadly flat in 2024. While

inflation has eased, we continued to see lag effects in its impact on our

third party costs, such as contractor rates, consumables and some raw

materials; we expect this to stabilise in 2024.

In the second half of 2023, we started to see some easing of market-

linked prices for key raw materials such as caustic, coke and pitch:

these benefited underlying EBITDA by $0.2 billion.

Temporary operational issues reduced underlying EBITDA by $0.6

billion. We saw a 20% rise in Copper C1 unit costs, primarily driven by

lower refined volumes at Kennecott following the planned rebuild of the

smelter and refinery. In Minerals, fixed unit cash costs increased at Iron

Ore Company of Canada (IOC), driven by lower production following the

wildfires in Northern Quebec in June as well as extended plant

downtime and conveyor belt failures in the third quarter.

Other cost pressures and weaker market demand lowered underlying

EBITDA by $1.0 billion. In Minerals, we experienced market weakness

for many of our products, in particular for TiO2 feedstock, which gave

rise to lower volumes and resulting higher unit costs. In the Pilbara, a

higher mine work index and investment in mine maintenance and

system health were in part offset by cost efficiencies on delivering

increased volumes. In Aluminium, we invested in improving the integrity

across our integrated operations.

Overall, we continue to experience tightness in our key labour markets,

in Western Australia, Quebec and Utah, which raised costs above

general inflation. We also entered into a new collective bargaining

agreement at IOC and applied the new labour law in Mongolia.

We have also increased our investment in decarbonisation, research &

development, technology, along with communities and social investment

to deliver on our four objectives.

Increasing our global exploration and evaluation

activity

Our ongoing exploration and evaluation expenditure in 2023 was $0.9

billion, compared with guidance of $1.0 billion and $0.7 billion in 2022.

The increase was mainly attributable to increased activity at the Rincon

lithium project in Argentina and across the other product group projects.

We also expensed costs associated with the Simandou iron ore project

in Guinea (included in underlying EBITDA on a 100% basis): these

increased from $0.2 billion to $0.5 billion, with qualifying Simandou

costs being capitalised from the fourth quarter of 2023. These

expenditures were partly offset by a $0.2 billion gain on disposal of 55%

of our interest in the La Granja copper project in Peru to First Quantum

Minerals in 2023, leading to a net charge to the Income Statement of

$1.2 billion (2022: $0.9 billion).

Net earnings

The principal factors explaining the movements in underlying earnings and net earnings are set out below.

	US$bn
2022 net earnings	12.4
Changes in underlying EBITDA (see above)	(2.4)
Increase in depreciation and amortisation (pre-tax) in underlying earnings	(0.1)
Decrease in interest and finance items (pre-tax) in underlying earnings	0.2
Increase in tax on underlying earnings	(0.2)
Decrease in underlying earnings attributable to outside interests	0.8
Total changes in underlying earnings	(1.6)
Changes in items excluded from underlying earnings (see below)	(0.7)
2023 net earnings	10.1

Financial figures are rounded to the nearest million, hence small differences may result in the totals. Comparative information has been restated to reflect the adoption of narrow scope amendments

to IAS12 'Income Taxes'.

Increase in tax on underlying earnings

The effective tax rate on underlying earnings in 2023 was 30%

compared with 26% in 2022. Consequently the tax on underlying

earnings increased by $0.2 billion despite a decrease in underlying

EBITDA. The rate in 2023 was in line with guidance, whereas the 2022

rate was lower due to the recognition of additional deferred tax assets in

respect of Oyu Tolgoi and adjustments in respect of prior periods.

Decrease in underlying earnings attributable to

outside interests

We completed the acquisition of Turquoise Hill Resources' non-

controlling interests in December 2022, which resulted in a reduction of

Oyu Tolgoi's earnings being attributable to outside interests and

therefore a higher share of income being attributable to Rio Tinto. The

ramp-up of exploration and evaluation spend at Simandou resulted in

greater charges attributable to outside interests given our 45.05%

effective interest in the project.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 25

Items excluded from underlying earnings

The differences between underlying earnings and net earnings are set out in this table (all numbers are after tax and exclude amounts attributable to

non-controlling interests).

	2023	2022
Year ended 31 December	US$bn	US$bn
Underlying earnings	11.8	13.4
Items excluded from underlying earnings
Net impairment charges	(0.7)	(0.1)
Change in closure estimates (non-operating and fully impaired sites)	(1.1)	(0.2)
Foreign exchange and derivative gains on net debt and intragroup balances and derivatives not qualifying for hedge accounting	(0.3)	(0.1)
Deferred tax arising on internal sale of assets in Canadian operations	0.4	–
Gains recognised by Kitimat relating to LNG Canada's project	–	0.1
Loss on disposal of interest in subsidiary	–	(0.1)
Gain on sale of Cortez royalty	–	0.3
Write-off of Federal deferred tax assets in the United States	–	(0.9)
Total items excluded from underlying earnings	(1.7)	(1.0)
Net earnings	10.1	12.4

Financial figures are rounded to the nearest million, hence small differences may result in the totals. Comparative information has been restated to reflect the adoption of narrow scope amendments

to IAS12 'Income Taxes'.

On pages 290 to 291 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 175.

We recognised net impairment charges of $0.7 billion (after tax), mainly related to our alumina refineries in Queensland, taken in the first half of

2023. This was triggered by the challenging market conditions facing these assets, together with our improved understanding of the capital

requirements for decarbonisation and the recently legislated cost escalation for carbon emissions. For a detailed explanation of the impairment

process, refer to note 4 to the Financial Statements in the 2023 Annual Report. The signing of key agreements with the Government of Guinea and

other joint venture partners for co-development of the infrastructure for the Simandou iron ore project gave rise to an impairment reversal trigger, for

amounts which had been fully impaired in 2015. Previously capitalised exploration and evaluation costs associated with the mine and retained items

of property, plant and equipment totalling $0.2 billion (after tax and outside interests) have therefore been reversed.

We excluded $1.1 billion of closure cost charges from underlying earnings, of which $850 million related to the closure update announced by Energy

Resources of Australia (ERA) on 12 December 2023. This was considered material and was therefore aggregated with other closure study updates

in the second half of 2023 which were similar in nature. These other updates were at legacy sites and at the Yarwun alumina refinery, which was

expensed due to the impairment earlier in the year.

We recognised an exchange and derivative loss of $0.3 billion (2022: loss of $0.1 billion). The exchange losses are largely offset by currency

translation gains recognised in equity. The quantum of US dollar debt is largely unaffected and we will repay it from US dollar sales receipts.

Our Canadian aluminium business completed an internal sale of assets. This 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 $0.4 billion has been recognised.

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

2023 was $10.1 billion (2022: $12.4 billion). We recorded a profit after tax in 2023 of $10.0 billion (2022: $13.0 billion) of which a loss of $0.1 billion

was attributable to non-controlling interests (2022 profit: $0.7 billion).

Underlying EBITDA and underlying earnings by product group

	Underlying EBITDA			Underlying earnings
	2023	2022	Change	2023	2022	Change
Year ended 31 December	US$bn	US$bn	%	US$bn	US$bn	%
Iron Ore	20.0	18.6	7%	11.9	11.2	6%
Aluminium	2.3	3.7	(38)%	0.5	1.5	(64)%
Copper	1.9	2.6	(26)%	0.1	0.7	(81)%
Minerals	1.4	2.4	(42)%	0.3	0.9	(63)%
Reportable segment total	25.6	27.3	(6)%	12.9	14.3	(10)%
Simandou iron ore project	(0.5)	(0.2)	185%	(0.2)	(0.1)	10%
Other operations	–	–	—%	(0.3)	(0.3)	(28)%
Central pension costs, share-based payments, insurance and derivatives	0.2	0.4	(55)%	–	0.4	(87)%
Restructuring, project and one-off costs	(0.2)	(0.2)	10%	(0.1)	(0.1)	32%
Other central costs	(1.0)	(0.8)	29%	(0.9)	(0.7)	29%
Central exploration and evaluation	(0.1)	(0.3)	(60)%	(0.1)	(0.2)	(71)%
Net interest				0.3	0.1	130%
Total	23.9	26.3	(9)%	11.8	13.4	(12)%

Financial figures are rounded to the nearest million, hence small differences may result in the totals and period-on-period change. 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 289 to 294.

Financial review continued

26 Annual Report on Form 20-F 2023 | riotinto.com

Simandou iron ore project

Costs attributable to the Simandou project in Guinea increased from

$0.2 billion to $0.5 billion (100% basis at underlying EBITDA level) on

ramp-up of project activity in 2023. We commenced capitalising

qualifying spend on Simandou from the fourth quarter of 2023, with $0.3

billion included in capital expenditure (100% basis).

Central and other costs

Pre-tax central pension costs, share-based payments, insurance and

derivatives were a $0.2 billion credit compared with a $0.4 billion credit

in 2022, reflecting movement on derivatives in the two years.

On a pre-tax basis, restructuring, project and one-off central costs were

mainly associated with corporate projects and were comparable to 2022.

Other central costs of $1.0 billion were 29% higher than 2022, reflecting

increased investment in decarbonisation, research & development and

technology. Our core central costs increased in line with inflation.

On an underlying earnings basis, net interest was a credit of $0.3 billion

(2022: credit of $0.1 billion), reflecting Rio Tinto's increased interest in

Oyu Tolgoi and the related financing items following the acquisition of

Turquoise Hill minorities in 2022.

Continuing to invest in greenfield exploration

We have a strong portfolio of greenfield exploration projects in early

exploration and studies stages, with activity in 18 countries across eight

commodities. This is reflected in our pre-tax central spend of

$0.3 billion. The bulk of this expenditure in 2023 focused on copper in

Australia, Chile, Colombia, Namibia, the United States and Zambia;

diamonds in Canada; nickel in Brazil, Canada and Peru; heavy mineral

sands in South Africa; and potash in Canada. We recently partnered

with Codelco on the Nuevo Cobre copper project in the prospective

Atacama region in Chile and with Charger Metals on the Lake Johnston

lithium project in the Yilgarn, Western Australia. This spend is offset by

the gain recognised on disposal of 55% of our interest in the La Granja

copper project ($0.2 billion, pre-tax).

Cash flow

	2023	2022
Year ended 31 December	US$bn	US$bn
Net cash generated from operating activities	15.2	16.1
Purchases of property, plant and equipment and intangible assets	(7.1)	(6.8)
Lease principal payments	(0.4)	(0.4)
Free cash flow¹	7.7	9.0
Dividends paid to equity shareholders	(6.5)	(11.7)
Acquisitions	(0.8)	(0.9)
Purchase of the minority interest in Turquoise Hill Resources Ltd	–	(3.0)
Disposals	–	0.1
Cash receipt from sale of Cortez royalty	–	0.5
Other	(0.4)	0.2
Movement in net debt/cash¹	–	(5.8)

Financial figures are rounded to the nearest million, hence small differences may result in the totals.

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 289 to 294. Our financial results are prepared in accordance with IFRS — see page 158 for further information.

–$15.2 billion in net cash generated from operating activities, 6% lower

than 2022, primarily driven by price movements for our major

commodities and a $0.9 billion rise in working capital, partly offset by

lower taxes paid. The cash outflow from the working capital increase

was driven by healthy stocks in the Pilbara, still elevated in-process

inventory at Kennecott following the extended smelter rebuild and

higher working capital at Iron & Titanium, reflective of weaker market

conditions. Receivables also reflected a 20% higher iron ore price at

2023 year end (vs 2022) that will be monetised in 2024. Operating

cash flow was also impacted by lower dividends, primarily from

Escondida ($0.6 billion in 2023; $0.9 billion in 2022).

–Taking into account the timing of payments in Australia, taxes paid of

$4.6 billion in 2023 were at a similar level to 2022, which included

around $1.5 billion of payments related to prior years.

–Our capital expenditure of $7.1 billion was comprised of $1.0 billion of

growth ($0.9 billion on a Rio Tinto share basis), $1.6 billion of

replacement, $4.3 billion of sustaining and $0.2 billion of

decarbonisation capital (in addition to $0.2 billion of decarbonisation

spend in operating costs). We expect to spend around $4.0 billion

each year on sustaining capital; spend in 2023 included the smelter

and refinery rebuild at Kennecott ($0.3 billion) and targeted

investment in asset health in Iron Ore and Aluminium. We funded our

capital expenditure from operating activities and generally expect to

continue funding our capital program from internal sources.

–$6.5 billion of dividends paid in 2023, being the 2022 final ordinary

and the 2023 interim ordinary dividends.

–$0.8 billion of acquisitions related to the Matalco recycling joint

venture and the Nuevo Cobre exploration joint venture with Codelco.

–The above movements, together with $0.4 billion of other

movements, resulted in net debt1 remaining stable year-on-year at

$4.2 billion at 31 December 2023.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 27

Balance sheet

Net debt1 of $4.2 billion was unchanged at 31 December 2023

compared to the prior year end.

Our net gearing ratio1 (net debt/(cash) to total capital) was 7% at

31 December 2023 (31 December 2022: 7%). See page 294.

Our total financing liabilities excluding net debt derivatives at

31 December 2023 (see page 205) were $14.4 billion (31 December

2022: $12.3 billion) and the weighted average maturity was around 12

years. At 31 December 2023, approximately 68% of these liabilities

were at floating interest rates (75% excluding leases). The maximum

amount within non-current borrowings maturing in any one calendar

year is $1.65 billion, which matures in 2033.

On 7 March 2023, we priced $650 million of 10-year fixed rate SEC-

registered debt securities and $1.1 billion of 30-year fixed rate SEC-

registered debt securities. The 10-year notes will pay a coupon of 5.000

per cent and will mature 9 March 2033 and the 30-year notes will pay a

coupon of 5.125 per cent and will mature 9 March 2053.

We had $10.5 billion in cash and cash equivalents plus other short-term

cash investments at 31 December 2023 (31 December 2022:

$8.8 billion).

Provision for closure costs

At 31 December 2023, provisions for close-down and restoration costs

and environmental clean-up obligations were $17.2 billion

(31 December 2022: $15.8 billion). The increase was largely due to

revised closure estimates following new studies at certain operations

and legacy sites, including ERA, together with the amortisation of

discount ($1.0 billion), which includes the effect of elevated inflation for

the year. This was partly offset by a revision of the closure discount rate

to 2.0% (from 1.5%), reflecting expectations of higher yields from long-

dated bonds, which resulted in a $1.1 billion decrease in the provision.

$0.8 billion of the provision was also utilised through spend in 2023.

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 289 to 294.

Financial review continued

28 Annual Report on Form 20-F 2023 | riotinto.com

Our shareholder returns policy

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. 

At the end of each financial period, the Board determines an appropriate total level of ordinary dividend per share. This takes into account the

results for the financial year, the outlook for our major commodities, the Board’s view of the long-term growth prospects of the business and the

company’s objective of maintaining a strong balance sheet. The intention is that the balance between the interim and final dividend be weighted to

the final dividend. 

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. Acknowledging the cyclical nature of the industry, it is the Board’s intention to supplement the ordinary dividend with additional

returns to shareholders in periods of strong earnings and cash generation.

60% payout ratio on the ordinary dividend delivers an eight-year track record

	2023 US$bn	2022 US$bn
Ordinary dividend
Interim1	2.9	4.3
Final1	4.2	3.7
Full-year ordinary dividend	7.1	8.0
Payout ratio on ordinary dividend	60%	60%

1.Based on weighted average number of shares and declared dividends per share for the respective periods and excluding foreign exchange impacts on payment.

We determine dividends in US dollars. We declare and pay Rio Tinto plc dividends in pounds sterling and Rio Tinto Limited dividends in Australian

dollars. The 2023 final dividend has been converted at exchange rates applicable on 20 February 2024 (the latest practicable date before the

dividend was declared). American Depositary Receipt (ADR) holders receive dividends at the declared rate in US dollars.

Ordinary dividend per share declared	2023	2022
Rio Tinto Group
Interim (US cents)	177.00	267.00
Final (US cents)	258.00	225.00
Full-year (US cents)	435.00	492.00
Rio Tinto plc
Interim (UK pence)	137.67	221.63
Final (UK pence)	203.77	185.35
Full-year (UK pence)	341.44	406.98
Rio Tinto Limited
Interim (Australian cents)	260.89	383.70
Final (Australian cents)	392.78	326.49
Full-year (Australian cents)	653.67	710.19

The 2023 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.

On 18 April 2024, we will pay the 2023 final ordinary dividend to holders of ordinary shares and holders of ADRs on the register at the close of

business on 8 March 2024 (record date). The ex-dividend date is 7 March 2024.

Rio Tinto plc shareholders may choose to receive their dividend in Australian dollars or New Zealand dollars, and Rio Tinto Limited shareholders

may choose to receive theirs in pounds sterling or New Zealand dollars. Currency conversions will be based on the pound sterling, Australian dollar

and New Zealand dollar exchange rates five business days before the dividend payment date. Rio Tinto plc and Rio Tinto Limited shareholders must

register their currency elections by 26 March 2024.

We will operate our Dividend Reinvestment Plans for the 2023 final dividend (visit riotinto.com for details). Rio Tinto plc and Rio Tinto Limited

shareholders’ election notice for the Dividend Reinvestment Plans must be received by 26 March 2024. Purchases under the Dividend

Reinvestment Plan are made on or as soon as practicable after the dividend payment date and at prevailing market prices. There is no discount

available.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 29

Portfolio management

Capital projects

Project (Rio Tinto 100% owned unless otherwise stated)	Total capital cost (100% unless otherwise stated)	Status/Milestones
Ongoing
Iron ore
Investment in the Western Range iron ore project, a joint venture between Rio Tinto (54%) and China Baowu Steel Group Co. Ltd (46%) in the Pilbara to sustain production of the Pilbara BlendTM from Rio Tinto's existing Paraburdoo hub. First production is anticipated in 2025.	$1.3bn (Rio Tinto share)1	Approved in September 2022, the mine will have a capacity of 25 million tonnes per year. The project includes construction of a primary crusher and an 18 kilometre conveyor connection to the Paraburdoo processing plant. Construction is currently on schedule with civil work well advanced, while we continue to progress primary crusher works, bulk earthworks and mine pre-strip.
Investment in the Simandou 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 Simandou2 (WCS), Baowu and the Republic of Guinea (the partners). Overall, the co-developed infrastructure represents more than 600 kilometres of new multi-user (including passenger and general freight services) rail together with port facilities to be co-developed by the partners to allow the export of up to 120 million tonnes per year of iron ore mined by Simfer's and WCS's respective mining concessions.3	$6.2bn4 (estimated Rio Tinto share)	Announced in December 2023, the Simfer joint venture5 will develop, own and operate a 60 million tonne per year6 mine in blocks 3 & 4. First production at the mine is expected in 2025, ramping up over 30 months to an annualised capacity of 60 million tonnes per year (27 million tonnes Rio Tinto share). WCS will construct the project's ~536 kilometre dual track main line 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. Pending completion and commissioning of its 60 million tonne per year transhipment vessel port, Simfer will be able to export its ore using WCS's barge port. The Rio Tinto Board has approved the project, subject to the remaining conditions being met, including joint venture partner approvals and regulatory approvals7 from China and Guinea.
Aluminium
Investment to expand the low-carbon AP60 aluminium smelter at the Complexe Jonquière in Quebec. The investment includes up to $113 million of financial support from the Quebec government.	$1.1bn	Approved in June 2023, the investment will add 96 AP60 pots, representing 160,000 tonnes of primary aluminium per year, replacing the Arvida smelter which is set to gradually close from 2024. We continued early works for the expansion of the AP60 smelter. Commissioning is expected in the first half of 2026, with the smelter fully ramped up by the end of that year. Once completed, it is expected to be in the first quartile of the industry operating cost curve.
Copper
Phase two of the south wall pushback to extend mine life at Kennecott in Utah by a further six years.	$1.8bn	Approved in December 2019, the investment will further extend strip waste rock mining and support additional infrastructure development. This will allow mining to continue into a new area of the orebody between 2026 and 2032. In March 2023, a further $0.3 billion was approved to primarily mitigate the risk of failure in an area of geotechnical instability known as Revere, necessary to both protect open pit value and enable underground development.
Investment in the Kennecott underground development of the North Rim Skarn (NRS) area.	$0.5bn	Approved in June 2023, production from NRS8 will commence in the first quarter of 2025 (previously 2024) and is expected to ramp up over two years, to deliver around 250,000 tonnes of additional mined copper over the next 10 years9 alongside open cut operations.
Development of the Oyu Tolgoi underground copper-gold mine in Mongolia (Rio Tinto 66%), which is expected to produce (from the open pit and underground) an average of ~500,000 tonnes10 of copper per year from 2028 to 2036.	$7.06bn	We delivered first sustainable underground production from Panel 0 in March 2023. The commissioning of infrastructure for ramp-up to full capacity remains on target: we expect shafts 3 and 4 and the conveyor to surface in the second half of 2024, while the concentrator conversion is expected to be progressively completed from the fourth quarter of 2024 through to the second quarter of 2025. Construction of primary crusher 2 commenced in December 2023 and is due to be complete by the end of 2025.

1.Rio Tinto share of the Western Range capital cost includes 100% of funding costs for Paraburdoo plant upgrades.

2.WCS is currently a consortium of Singaporean company, Winning International Group (50%), Weiqiao Aluminium (part of the China Hongqiao Group) (50%) and United Mining Supply Group

(nominal shareholding). 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. Baowu Resources has entered into an agreement to acquire a 49% share of WCS mine and infrastructure projects through a Baowu-led consortium, subject to conditions including

regulatory approvals. In the case of the mine, Baowu has an option to increase to 51% during operations.

3.WCS holds the mining concession for Blocks 1 and 2, while Simfer SA holds the mining concession for blocks 3 and 4. Simfer and WCS will independently develop their mines.

4.Estimated numbers, subject to approval by the Simfer board and government authorities. Spend incurred on the project in 2023 was $0.9 billion of which $539 million was charged to the Income

Statement and $330 million was capitalised ($266 million on a cash basis). All qualifying costs are being capitalised from the fourth quarter of 2023.

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.U. will deliver Simfer’s scope of the co-developed rail and port infrastructure,

and is, on the date of this notice, a wholly-owned subsidiary of Simfer Jersey Limited, but will be co-owned by the Guinean State (15%) after closing of the co-development arrangements.

6.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.

7.Co-development of the rail and port infrastructure remains subject to a number of conditions, including regulatory approvals in Guinea and China, the entry into a number of legal agreements,

ratification of the investment framework for co-development by the Republic of Guinea, and agreement between Simfer, WCS and the Republic of Guinea regarding the budget for the rail and port

infrastructure.

8.The NRS Mineral Resources and Ore Reserves, together with the Lower Commercial Skarn (LCS) Mineral Resources and Ore Reserves, form the Underground Skarns Mineral Resources and

Ore 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.

10.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.

30 Annual Report on Form 20-F 2023 | riotinto.com

Future options

	Status
Iron Ore: Pilbara brownfields
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.	In addition to Western Range (Greater Paraburdoo), which is under construction, we continue to progress studies for Hope Downs 1 (Hope Downs 2 and Bedded Hilltop), Brockman 4 (Brockman Syncline 1), Greater Nammuldi and West Angelas. We continue to work closely with local communities, Traditional Owners and governments to progress approvals for these new mining projects.
Iron Ore: Rhodes Ridge
In October 2022, Rio Tinto (50%) and Wright Prospecting Pty Ltd (50%) agreed to modernise the joint venture covering the Rhodes Ridge project in the Eastern Pilbara, providing a pathway for development utilising Rio Tinto’s rail, port and power infrastructure.	A resource-drilling program is currently underway to support future project studies. In December 2023, we announced approval of a $77 million pre-feasibility study (PFS). This follows completion of an Order of Magnitude study that considered development of an operation with initial capacity of up to 40 million tonnes per year, subject to relevant approvals. Completion of the PFS is expected by the end of 2025 and will be followed by a feasibility study, with first ore expected by the end of the decade. Longer term, the resource could support a world-class mining hub with a potential capacity of more than 100 million tonnes of high-quality iron ore a year.
Lithium: Jadar
Development of the greenfield Jadar lithium-borates project in Serbia will include an underground mine with associated infrastructure and equipment, including electric haul trucks, as well as a beneficiation chemical processing plant.	The Board committed funding in July 2021, subject to receiving all relevant approvals, permits and licences. We are focused on consultation with all stakeholders to explore all options following the Government of Serbia's cancellation of the Spatial Plan in January 2022.
Lithium: Rincon
We completed the acquisition of the Rincon Lithium project in Salta province, Argentina in March 2022. Development of a 3,000 tonne per year battery-grade lithium carbonate starter plant is ongoing with first saleable production expected at the end of 2024. Studies are continuing on the full-scale plant, which will have benefits of economies of scale, with the capital intensity, based on current stage of studies, forecast to be in line with regional lithium industry benchmarks.	In July 2022, we approved $140 million of investment and $54 million for early works to support a full-scale operation. To date, the majority of costs have been expensed through exploration and evaluation expenditure. In July 2023, we approved a further $195 million to complete the starter plant: the increase was driven by the project now being fully defined (previously conceptual), scope adjustments to design (including column performance improvements and changes to waste and spent brine disposal facilities), rising capital costs across the lithium industry, particularly for processing equipment and from broad cost escalation in Argentina.
Mineral Sands: Zulti South
Development of the Zulti South project at Richards Bay Minerals (RBM) in South Africa (Rio Tinto 74%).	Approved in April 2019 to underpin RBM’s supply of zircon and ilmenite over the life of the mine. The project remains on full suspension.
Copper: Resolution
The Resolution Copper project is a proposed underground copper mine in the Copper Triangle, in Arizona, US (Rio Tinto 55%). It has the potential to supply up to 25% of US copper demand.	The United States Forest Service (USFS) continued work to progress the Final Environmental Impact Statement and complete actions necessary for the land exchange. We continued to advance partnership discussions with several federally- recognised Native American Tribes who are part of the formal consultation process. We are also monitoring the Apache Stronghold versus USFS case held in the US Ninth Circuit Court of Appeals. While there is significant local support for the project, we respect the views of groups who oppose it and will continue our efforts to address and mitigate these concerns.
Copper: Winu
In late 2017, we discovered copper-gold mineralisation at the Winu project in the Paterson Province in Western Australia. In 2021, we reported our first Indicated Mineral Resource. The pathway remains subject to regulatory and other required approvals. In parallel, we continue to explore options aimed at enhancing project value, including further optimisation of the current pathway and alternative development models and partnerships.	In 2023, Project Planning Agreements were executed with the Nyangumarta and Martu groups, the Traditional Owners of the land on which the proposed Winu mine and airstrip will be located. Study activities, drilling and fieldwork progressed sufficiently to commence Winu’s formal Western Australian Environmental Protection Authority approval process. The environmental approval deliverables and Project Agreement negotiations with both Traditional Owner groups remain the priority.
Copper: La Granja
In August 2023, we completed a transaction to form a joint venture with First Quantum Minerals that will work to unlock the development of the La Granja project in Peru, one of the largest undeveloped copper deposits in the world, with potential to be a large, long-life operation.	First Quantum Minerals acquired a 55% stake in the project for $105 million and 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. All subsequent expenditures will be applied on a pro-rata basis in line with shared ownership.
Aluminium: ELYSIS
ELYSIS, our joint venture with Alcoa, supported by Apple, the Government of Canada and the Government of Quebec, is developing a breakthrough inert anode technology that eliminates all direct greenhouse gases from the aluminium smelting process.	ELYSIS has started commissioning activities following completion of the construction of the first commercial-scale prototype cells. ELYSIS expects to start the first 450kA cell in 2024.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 31

Iron Ore
	We are one of the world’s leading producers of iron ore, the primary raw material in steelmaking. In the Pilbara region of Western Australia, we operate a network of 17 iron ore mines, four port terminals and a rail network spanning 1,900 kilometres. Steel remains essential for ongoing urbanisation and will support the global shift to decarbonise.
	Snapshot of the year
	0.61 AIFR (2022: 0.68)	69% Pilbara underlying FOB EBITDA margin (2022: 68%)	$20.0bn Underlying EBITDA (2022: $18.6bn)	$32.2bn Segmental revenue (2022: $30.9bn)
	$2.6bn Capital expenditure (2022: $2.9bn)	$14.0bn Net cash generated from operating activities (2022: $14.0bn)	3.2Mt Scope 1 and 2 GHG emissions (equity Mt CO2e) (2022: 3.1Mt)	16,000 Employee numbers1 (2022: 15,000)

Safety

The number of potentially fatal incidents (PFIs)

in Iron Ore decreased 48% to 13 with falling

objects and vehicle collisions/rollovers 

accounting for the majority of these incidents.

Our all-injury frequency rate (AIFR) decreased

10% to 0.61, compared to 0.68 in 2022.

These improvements are the result of

consistently using the safety maturity model

(SMM) for the past four years across our

operations. SMM encourages best practices

across our business in leadership, team

engagement and learning to improve our

safety culture. We also re-engaged our

workforce on critical risk management (CRM),

a safety program that makes sure frontline

workers are focused on the critical safety risks

in their work.

We continued our journey to mature our

workplace safety culture and create an

environment where our people are both

physically and psychologically healthy and

safe. We completed the first year in our five-

year Mentally Healthy Iron Ore Strategy, with a

focus on building capability in our leaders to

manage psychosocial risks in the workplace.

Our focus remains on creating a safe,

respectful and inclusive workplace where our

people can bring their whole selves to work.

For more information about our global health and safety initiatives see pages 71-72.

In April 2023 the Radiological Council, an

independent statutory authority, found Rio

Tinto did not breach the Radiation Safety Act

in relation to the loss of a radioactive capsule

while in transit from our Gudai-Darri mine site.

We also conducted a thorough review and

identified opportunities to further improve the

selection of radiation gauges, and how the

items are packaged and transported.

Market Insights

Iron ore market fundamentals were well-

supported in 2023. Steelmakers in China

maintained elevated operating rates as

domestic demand rose 1.5% year-on-year.

Infrastructure and other government-backed

construction surpassed residential property as

the largest steel consuming sectors, while

manufacturing continued to contribute

substantial volumes of demand.

A 47% increase in net steel exports further

supported China’s crude steel production which

exceeded one billion tonnes for the fourth

consecutive year. China’s steel exports also

resulted in higher contestable iron ore demand

globally since they in part displaced steel,

which would have been produced in other

regions using captive iron ore or higher scrap

rates. This resulted in a 6.6% year-on-year

increase in China’s iron ore imports, reaching

a record 1.18 billion tonnes, which helped

absorb the 5% year-on-year increase in

seaborne supply (to 1.5 billion tonnes). At the

same time, China’s port inventories declined

to a three-year low.

Enabling the low-carbon transition

In 2023, our Iron Ore business’s absolute

greenhouse gas (GHG) emissions were

3.2Mt CO2e (on an equity basis), an increase

of 0.57Mt CO2e compared to the 2018

emissions baseline (2.64Mt CO2e). This was

driven by an increase in production.

Approximately one-quarter of Iron Ore emissions 

are from the gas used to generate power. To reduce

our reliance on gas we are progressing

development of 600 to 700MW of renewable energy

capacity and preparing for early fleet electrification

from 2030. We continue to progress the potential

development of a Pilbara coastal solar farm and are

partnering with the Yindjibarndi Energy Corporation

to explore opportunities to collaborate on renewable

energy projects.

For more information about our decarbonisation efforts in the Iron Ore product group, see our 2023 Climate Change Report at riotinto.com/ climatereport.

From customer to strategic partner In 2023, we extended a key climate partnership with our largest customer, China Baowu, to accelerate efforts to decarbonise the steel value chain and reduce our Scope 3 emissions. This is the result of a coordinated approach across our sales, marketing, and research and development teams based on decades of deep relationship building with the world’s biggest steelmaker, who is also a joint venture partner in the Western Range and Simandou projects.

For more information see riotinto.com/baowu.

1.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

32 Annual Report on Form 20-F 2023 | riotinto.com

Iron Ore

Year ended 31 December	2023	2022	Change
Pilbara production (million tonnes — 100%)	331.5	324.1	2%
Pilbara shipments (million tonnes — 100%)	331.8	321.6	3%
Salt production (million tonnes — Rio Tinto share)¹	6.0	5.8	4%
Segmental revenue (US$ millions)	32,249	30,906	4%
Average realised price (US$ per dry metric tonne, FOB basis)	108.4	106.1	2%
Underlying EBITDA (US$ millions)	19,974	18,612	7%
Pilbara underlying FOB EBITDA margin²	69%	68%
Underlying earnings (US$ millions)³	11,882	11,213	6%
Net cash generated from operating activities (US$ millions)	14,045	14,005	–%
Capital expenditure (US$ millions)⁴	(2,588)	(2,940)	(12%)
Free cash flow (US$ millions)	11,374	11,033	3%
Underlying return on capital employed³, ⁵	64%	61%

Production figures are sometimes more precise than the rounded numbers shown, hence small differences may result in the year on year change.

1.Dampier Salt is reported within Iron Ore, reflecting management responsibility. Iron Ore Company of Canada continues to be reported within Minerals. The Simandou iron ore project in Guinea

reports to the Chief Technical Officer and is reported outside the Reportable segments.

2.The Pilbara underlying free on board (FOB) EBITDA margin is defined as Pilbara underlying EBITDA divided by Pilbara segmental revenue, excluding freight revenue.

3.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

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.

5.Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.

Financial performance

Underlying EBITDA of $20.0 billion was 7%

higher than 2022, with a 2% improvement in

realised prices ($0.8 billion) and higher

volumes, following the ramp-up of Gudai-Darri.

Unit costs of $21.5 per tonne were $0.2 per

tonne lower than 2022. Cost escalation from

inflation was offset by a weaker Australian

dollar and gains on derivative contracts.

Higher iron ore volumes offset a higher mine

work index and mine maintenance costs.

Our Pilbara operations delivered an underlying

FOB EBITDA margin of 69%, compared with

68% in 2022, largely due to the iron ore price.

We price the majority of our iron ore sales

(79%) by reference to the average index price

for the month of shipment. In 2023, we priced

approximately 10% of sales with reference to

the prior quarter’s average index lagged by

one month with the remainder sold either on

current quarter average, on the spot market or

other mechanisms. We made approximately

74% of sales including freight and 26% on an

FOB basis.

We achieved an average iron ore price

of $99.7 per wet metric tonne on an FOB basis

(2022: $97.6 per wet metric tonne) across our

product suite. This equates to $108.4 per dry

metric tonne, assuming 8% moisture (2022:

$106.1 per dry metric tonne), which compares

with the monthly average Platts index for 62%

iron fines converted to an FOB basis of $110.3

per dry metric tonne (2022: $109.8 per dry

metric tonne). The 2% lower realised price

compared to the Platts index was mainly due

to the lower average grades of our portfolio

compared to the 62% index.

Segmental revenue for our Pilbara operations

included freight revenue of $2.1 billion (2022:

$2.2 billion).

Net cash generated from operating activities

of $14.0 billion was on a par with 2022.

Benefits from higher realised prices and higher

volumes offset a build in working capital to

ensure healthy stocks across the system and

an increased receivables balance due to

strong iron ore prices at year end. Free cash

flow of $11.4 billion was $0.3 billion higher

than 2022, mostly driven by a $0.4 billion

reduction in capital expenditure to $2.6 billion

due to lower spend on replacement capital.

Review of operations

Pilbara operations produced 331.5 million

tonnes (100% basis) of iron ore, 2% higher

than 2022. Shipments, on a 100% basis, were

3% higher (+10 million tonnes) than in 2022,

making 2023 the second highest shipment

year on record. Improved system performance

supported by a 5 million tonne uplift from

implementation of the Safe Production

System, and ramp-up of Gudai-Darri to its 43

million tonne nameplate capacity, offset mine

depletion. SP10 volumes accounted for 47.5

million tonnes of 2023 shipments (or 14%).

We continue to see strong demand for our

portside product in China, with sales totalling

23.3 million tonnes in 2023 (2022: 24.3 million

tonnes). At the end of 2023, inventory levels

were 6.4 million tonnes, including 3.9 million

tonnes of Pilbara product. In 2023,

approximately 86% of our portside sales were

either screened or blended in Chinese ports.

In January 2024, Dampier Salt Limited entered

into a sales agreement for the Lake MacLeod

salt and gypsum operation in Carnarvon,

Western Australia with privately-owned salt

company Leichhardt Industrials Group for

$251 million (A$375 million). Completion of the

sale is subject to certain commercial and

regulatory conditions being satisfied. The

transaction is subject to capital gains tax.

For more information about our capital projects and future growth options, see pages 30-31.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 33

Aluminium
	As a global leader in low-carbon aluminium, we are uniquely positioned to further decarbonise our business and support the world’s transition towards a lower-carbon footprint. A critical material – lightweight and highly recyclable – aluminium is found in diverse products ranging from solar panels and transmission lines to jet engines, electric vehicles and smartphones.
	Snapshot of the year
	0.33 AIFR (2022: 0.35)	21% Underlying EBITDA margin (integrated operations) (2022: 29%)	$2.3bn Underlying EBITDA (2022: $3.7bn)	$12.3bn Segmental revenue (2022: $14.1bn)
	$1.3bn Capital expenditure (2022: $1.4bn)	$2.0bn Net cash generated from operating activities (2022: $3.1bn)	24.2Mt Scope 1 and 2 GHG emissions (equity Mt CO2e) (2022: 23.3Mt)	15,000 Employee numbers1 (2022: 15,000)

Safety

In 2023, we continued to focus on building

resilience within our safety systems and

processes. We implemented actions to

improve our safety culture for our employees

and our contractors, by identifying areas of

organisational improvement, strengthening our

control environment, and leveraging our safety

maturity model to analyse and address the

root causes of all our potentially fatal incidents

(PFIs).

The improvement in our safety maturity

translated into a decrease of almost 6% in our

all-injury frequency rate (AIFR) from 0.35 in

2022 to 0.33 in 2023. Increased incident

identification and proactive PFI2 reporting

have been key elements in enhancing our

safety culture. However, despite this

improvement, five workers were injured in PFI

incidents in 2023; three of these injuries

occurred in vehicle-related incidents. We

continue to progress our program to reduce

vehicle-pedestrian risks, focusing on fatigue

and work scheduling as primary factors

contributing to this trend. Ongoing work will be

needed in 2024 to help re-emphasise the

importance of working together to build and

sustain a strong safety culture.

For more information about our global health and safety initiatives, see pages 71-72.

Market Insights

Aluminium prices came under pressure in

2023, mainly driven by weaker demand

outside of China. This impact on operating

margins was partly offset by lower operating

costs. Supply was volatile, with hydropower-

integrated smelters in China only able to fully

resume production in the third quarter

following low precipitation in the first half, yet

production was curtailed once again in the

fourth quarter due to the oncoming dry

season. Global demand was similarly uneven

through the year.

While China’s electric vehicle and solar panel

manufacturers significantly increased their

consumption, the US, Europe and Japan

recorded historically low levels of aluminium

semi-fabricated orders and shipments.

Primary aluminium inventory remained

low in China due to strong demand and

seasonal disruptions to domestic production,

which required high levels of aluminium

primary imports, mainly from Russia.

Meanwhile, aluminium inventories

outside the Chinese market remain

below average historical levels.

Enabling the low-carbon transition

In 2023, our Aluminium business’s absolute

greenhouse gas emissions (24.2Mt CO2e)

were 1.4% lower than the 2018 equity

baseline (24.5Mt CO2e). This reduction

includes improvements in processing

efficiency, increased use of hydroelectric

boilers in refining instead of natural gas

boilers, and reduced aluminium production at

the Kitimat smelter. Following a strike in 2021,

the Kitimat smelter resumed its operations and

reached full operating capacity in September

2023.

The 2023 emissions intensity of our

managed Canadian smelters, powered by

hydroelectricity, was 2.28Mt CO2e per tonne of

aluminium. Our Vaudreuil alumina refinery

continues to have one of the lowest carbon

footprints of any metallurgical alumina refinery

in the world today.

For more information about our decarbonisation efforts in the Aluminium product group, see our 2023 Climate Change Report at riotinto.com/ climatereport.

1.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

2.A proactive PFI is one where there was neither injury nor property damage.  Proactive PFIs are leading indicators of safety performance and offer the opportunity to learn from near miss incidents.

They reflect a psychologically safe culture.

34 Annual Report on Form 20-F 2023 | riotinto.com

Aluminium

Year ended 31 December	2023	2022	Change
Bauxite production ('000 tonnes — Rio Tinto share)	54,619	54,618	—%
Alumina production ('000 tonnes — Rio Tinto share)	7,537	7,544	—%
Aluminium production ('000 tonnes — Rio Tinto share)	3,272	3,009	9%
Segmental revenue (US$ millions)	12,285	14,109	(13%)
Average realised aluminium price (US$ per tonne)	2,738	3,330	(18%)
Underlying EBITDA (US$ millions)	2,282	3,672	(38%)
Underlying EBITDA margin (integrated operations)	21%	29%
Underlying earnings (US$ millions)¹	538	1,504	(64%)
Net cash generated from operating activities (US$ millions)	1,980	3,055	(35%)
Capital expenditure — excluding EAUs (US$ millions)²	(1,331)	(1,377)	(3%)
Free cash flow (US$ millions)	619	1,652	(63%)
Underlying return on capital employed¹, ³	3%	10%

1.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.

2.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).

3.Underlying return on capital employed (ROCE) is defined as underlying earnings excluding net interest divided by average capital employed.

Financial performance

Although global primary aluminium demand

rose by ~1% in 2023, falling costs and an

increase in global supply led to a 17%

reduction in the LME price and lower market

and product premiums. Market-related costs

for key materials such as caustic, coke and

pitch moderated with some of this benefitting

underlying EBITDA in the second half.

Operating costs particularly in our mines and

refineries increased year on year with a focus

on improved operational stability and asset

health. Overall there was significant margin

compression for our Aluminium business with

a 38% decrease in underlying EBITDA to $2.3

billion. Underlying EBITDA margin fell eight

percentage points to 21%.

We achieved an average realised aluminium

price of $2,738 per tonne, 18% lower than

2022.

Average realised aluminium prices comprise

the LME price, a market premium and a value-

added product (VAP) premium. The cash LME

price averaged $2,250 per tonne, 17% lower

than 2022, while in our key US market, the

Midwest premium duty paid, which is 57% of

our total volumes (2022: 57%), decreased by

22% to $512 per tonne (2022: $655 per

tonne). Our VAP sales represented 46% of the

primary metal we sold (2022: 50%) and

generated product premiums averaging $354

per tonne of VAP sold (2022: $431 per tonne).

Our conversion of underlying EBITDA to cash

remained relatively strong, with net cash

generated from operating activities of $2.0

billion. Free cash flow of $0.6 billion reflected

investment in the business of $1.3 billion.

Review of operations

Bauxite production of 54.6 million tonnes was

unchanged from 2022. Operations saw a

continued improvement in the fourth quarter,

following the challenges of higher-than-

average rainfall at Weipa in the first quarter

and equipment downtime at both Weipa and

Gove in the first half.

We shipped 37.3 million tonnes of bauxite to

third parties, 2% lower than 2022. Segmental

revenue for bauxite was also unchanged at

$2.4 billion. This includes freight revenue of

$0.5 billion (2022: $0.6 billion).

Alumina production of 7.5 million tonnes was

unchanged from 2022, with the Yarwun and

Queensland Alumina Limited (QAL) refineries

showing improved operational stability.

For the 2023 calendar year, as the result of

QAL's activation of a step-in process following

sanction measures enacted by the Australian

Government in 2022, we continued to take on

100% of capacity for as long as the step-in

continues. We have used Rusal’s 20% share

of capacity under the tolling arrangement with

QAL. This additional output is excluded from

our production results as QAL remains 80%

owned by Rio Tinto and 20% owned by Rusal.

On 1 February 2024, the Federal Court of

Australia rendered its decision in the litigation

initiated by Rusal against Rio Tinto and QAL,

dismissing Rusal’s case. Rio Tinto and QAL

are working to understand the impacts of the

decision.

Aluminium production of 3.3 million tonnes

was 9% higher than 2022, after we returned to

full capacity at the Kitimat smelter and

completed cell recovery efforts at Boyne

during the third quarter. All other smelters

continued to demonstrate stable performance.

For more information about our capital projects and future growth options, see pages 30-31.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 35

Copper
		Copper is essential to creating a sustainable, low-carbon world. Rapid electrification across all aspects of daily life is set to drive long-term demand for copper. With assets spanning the globe and an evolving suite of technologies to enable low-carbon production, we are accelerating growth and decarbonisation by producing the materials that enable a cleaner future.
		Snapshot of the year
	0 . X X A I F R ( 2 0 2 2 : 0 . 2 2 )	0.35 AIFR (2022: 0.22)	42% Underlying EBITDA margin (product group operations) (2022: 49%)	$1.9bn Underlying EBITDA (2022: $2.6bn)1	$6.7bn Segmental revenue (2022: $6.7bn)
	$ X . X b n C a p i t a l e x p e n d i t u r e ( 2 0 2 2 : $ 1 . 6 b n )	$2.0bn Capital expenditure (2022: $1.6bn)	$0.5bn Net cash generated from operating activities (2022: $1.5bn)1	1.0Mt Scope 1 and 2 GHG emissions (equity Mt CO2e) (2022: 1.7Mt)	8,000 Employee numbers2 (2022: 8,000)

Safety

We experienced an increase in the number of

injuries and Potentially Fatal Incidents (PFIs)

across our copper assets. There were 22 PFIs

in 2023 compared to 18 in the previous year.

We had an overall all-injury frequency rate

(AIFR) of 0.35 compared to 0.22 in 2022, an

increase of 59%, with an employee AIFR of

0.31 and a contractor AIFR of 0.38.

Unfortunately, in 2023, we also experienced

two permanent damage injuries at our

Simandou project and Kennecott Underground

project, and a Process Safety Tier I event at

our Kennecott smelter. Extensive action plans

are being executed to ensure our people and

their safety remains at the centre of everything

we do, and through our critical risk

management we are focusing on fatality

prevention across our sites. Underpinning our

strategy, we continue our journey to embed

our enhanced safety maturity model to help us

improve and sustain exceptional safety

performance. Copper assets continue to focus

on understanding and reducing their most

significant health risks exposures, including

heat stress, diesel particulate matter and SO2

exposure through the Kennecott smelter

rebuild. First line assurance for catastrophic

risk prevention is well embedded at Oyu Tolgoi

and is beginning to develop at our other

assets. This will provide greater certainty on

our risk control effectiveness for major hazard

and process safety risks going forward.

For more information about our global health and safety initiatives, see pages 71-72.

Market Insights

London Metal Exchange copper prices were

supported by expectations that China’s

demand would recover substantially as

COVID-19 restrictions were lifted at the

beginning of 2023. Disruptions to mine supply

in major mining countries further tightened

market fundamentals in the first quarter,

before loosening later in the year with the

commissioning of new mining projects in

South America and Africa.

Concerns about the US and China’s economic

growth towards the middle of the year

undermined sentiment. That was followed by a

stabilisation in China after pro-growth

measures were stepped up in the third quarter.

Overall, China’s demand was resilient, lending

support to copper prices together with

inflationary pressure, although price gains

were capped by US dollar appreciation. In the

final months of 2023, there were several

disruptions to mine supply in Latin America

that resulted in a notably tighter copper

concentrates market.

Enabling the low-carbon transition

In 2023, our Copper business’s absolute

greenhouse gas emissions (1.0Mt CO2e) were

65.5% lower than the 2018 equity baseline

(3.04Mt CO2e). The decrease in emissions

was mainly driven by decarbonising power

and commercial transactions in renewable

energy. Rio Tinto Kennecott is fully

transitioning to renewable diesel after a

successful seven month trial. Kennecott’s fleet

of 90 haul trucks and all heavy machinery will

begin to transition to renewable diesel in the

first quarter of 2024, along with consumption

from the concentrator, smelter, and refinery.

The transition will reduce Kennecott’s carbon

emissions by approximately 495,000 tonnes of

CO2 equivalent per annum, comparable to

eliminating the annual emissions of more than

107,000 cars3. 

NutonTM, our bioleaching technology venture,

has the potential to deliver game changing

ESG performance. Compared to conventional

concentrating and smelting and based on our

comparative environmental benchmark study

with the University of Technology, Sydney,

NutonTM is projected to have a carbon intensity

up to 60% lower than a global average of 5.2

tonnes per tonne of copper. Combined with

opportunities for renewable energy that can

further reduce emissions from NutonTM, we’re

excited about the incredible outcome NutonTM

could bring.

For more information about our decarbonisation efforts in the Copper product group, see our 2023 Climate Change Report at riotinto.com/ climatereport.

1.2022 has been adjusted to reflect a change in management responsibility for the Simandou iron ore project from Copper to the Chief Technical Officer. As a result, we have moved Simandou

outside of reportable segments and accordingly adjusted prior period comparatives.

2.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

3.Comparison calculation used US EPA Greenhouse gas equivalencies calculator (https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator).

36 Annual Report on Form 20-F 2023 | riotinto.com

Copper

Year ended 31 December	2023	2022	Change
Mined copper production ('000 tonnes — consolidated basis)	620	607	2%
Refined copper production ('000 tonnes — Rio Tinto share)	175	209	(16%)
Segmental revenue (US$ millions)	6,678	6,699	–%
Average realised copper price (US cents per pound)¹	390	403	(3%)
Underlying EBITDA (US$ millions)	1,904	2,565	(26%)
Underlying EBITDA margin (product group operations)	42%	49%
Underlying earnings (US$ millions)	133	687	(81%)
Net cash generated from operating activities (US$ millions)²	545	1,523	(64%)
Capital expenditure — excluding EAUs³ (US$ millions)	(1,976)	(1,622)	22%
Free cash flow (US$ millions)	(1,438)	(116)
Underlying return on capital employed (product group operations)⁴	3%	6%

2022 has been restated following the transfer of the Simandou iron ore project to outside the Reporting segments, as it now reports to the Chief Technical Officer, and to reflect the adoption of narrow

scope amendments to IAS12 'Income Taxes'.

1.Average realised price for all units sold. Realised price does not include the impact of the provisional pricing adjustments, which positively impacted revenues by $2 million (2022: $175 million

negative).

2.Net cash generated from operating activities excludes the operating cash flows of equity accounted units (EAUs) but includes dividends from EAUs (Escondida).

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

EAUs.

4.Underlying return on capital employed (ROCE) is defined as underlying earnings (product group operations) excluding net interest divided by average capital employed.

5.Mine design and plans will be reviewed by regulatory bodies as part of the OTFS23 process.

6.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.

Financial performance

We delivered first sustainable production from

the underground mine at Oyu Tolgoi, where

we doubled our interest to 66% following the

acquisition of Turquoise Hill Resources at the

end of 2022. However, lower refined copper

volumes and higher unit costs, primarily driven

by the planned smelter and refinery rebuild at

Kennecott, in addition to higher energy prices

and an increase in exploration and evaluation

expenditure, led to underlying EBITDA being

down 26% to $1.9 billion. Underlying EBITDA

margin remained relatively strong at 42%.

Our copper unit costs, at 195 cents per pound,

increased by 32 cents, or 20%, as a result of

the lower shipment volumes of refined copper

following the planned rebuild at Kennecott and

higher input costs.

We generated $0.5 billion in net cash from

operating activities, a 64% decrease on 2022,

from the same drivers as underlying EBITDA,

together with $0.3 billion lower dividends from

Escondida.

Negative free cash flow of $1.4 billion reflected

the above movements and significant

investment of $2.0 billion in sustaining capital

and our growth projects. This mainly related to

the ongoing development of the Oyu Tolgoi

underground, the projects at Kennecott and

evaluation costs at Resolution and Winu.

Review of operations

Mined copper production, at 620 thousand

tonnes, was 2% higher than 2022, reflecting

first sustainable production from Oyu Tolgoi

underground in the first quarter. This offset

challenges at Kennecott following a conveyor

failure in March, with the concentrator not

returning to full capacity until the third quarter.

Our share of mined copper production from

Escondida was flat at 300 thousand tonnes.

Refined copper production decreased by 16%

to 175 thousand tonnes as we undertook the

largest rebuild of the smelter and refinery in

Kennecott’s history across the second and

third quarters. The smelter rebuild was

successfully completed in the fourth quarter of

2023 and the ramp-up is progressing.

Oyu Tolgoi underground project

During 2023, Rio Tinto, Oyu Tolgoi and the

Government of Mongolia continued to work

together towards the implementation of

Mongolian Parliamentary Resolution 103.

We continue to see strong performance from

the underground mine, with a total of 86

drawbells opened from Panel 0, including 67

drawbells in 2023.

By the end of 2023, shafts 3 and 4 sinking had

reached 923 metres and 1,013 metres below

ground level, respectively. Final depths

required for shafts 3 and 4 are 1,130 and

1,176 metres, respectively. Both shafts are

expected to be commissioned in the second

half of 2024.

Construction of the conveyor to surface works

continued to plan and was 88% complete at

the end of 2023. Commissioning remains on

track for the second half of 2024.

Construction of primary crusher 2 commenced

in December 2023 and is due to be complete

by the end of 2025.

Construction works for the concentrator

conversion remains on schedule.

Commissioning is expected to be

progressively completed from the fourth

quarter of 2024 through to the second quarter

of 2025. Technical studies for mine design and

schedule optimisation for Panels 1 and 2 were

completed during the second quarter5. The

operation remains on track to ramp up to

deliver average mined copper production of

~500 thousand tonnes per year (100% basis)

between 2028 and 20366.

For more information about our capital projects and future growth options, see pages 30-31.

Nuevo Cobre exploration joint

venture agreement

We have entered into a joint venture with

Corporación Nacional del Cobre de Chile

(Codelco) following the acquisition of

PanAmerican Silver’s 57.74% stake in

Agua de la Falda S.A. The new joint

venture, known as Nuevo Cobre (New

Copper), will allow us to explore and

potentially develop Nuevo Cobre’s assets

in partnership with Codelco in Chile’s

prospective Atacama region.

Chile has the largest copper reserves in

the world, and currently is the leading

copper producer. Chile is also a leader in

other critical minerals that the world

needs for the energy transition and to

achieve net zero carbon emissions.

The partnership builds on a collaboration

agreement with Codelco, which first

commenced in 2007, that encourages

best practices, innovation, and

technology to improve safety and

productivity in underground mining.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 37

Minerals
		Our Minerals portfolio includes a global suite of businesses producing materials essential to a low-carbon future and projects well-positioned to meet the growing demand for electric vehicles. We produce high-grade, low-impurity iron ore pellets and concentrate, titanium dioxide, diamonds and borates from our operations in Canada, Madagascar, South Africa and the US.
		Snapshot of the year
	0 . X X A I F R ( 2 0 2 2 : 0 . 3 8 )	0.24 AIFR (2022: 0.38)	30% Underlying EBITDA margin (product group operations) (2022: 40%)	$1.4bn Underlying EBITDA (2022: $2.4bn)	$5.9bn Segmental revenue (2022: $6.8bn)
	$ X . X b n C a p i t a l e x p e n d i t u r e ( 2 0 2 2 : $ 0 . 7 b n )	$0.7bn Capital expenditure (2022: $0.7bn)	$0.5bn Net cash generated from operating activities (2022: $1.5bn)	3.7Mt Scope 1 and 2 GHG emissions (equity Mt CO2e) (2022: 4.0Mt)	10,000 Employee numbers1 (2022: 9,500)

Safety

While we recorded zero fatalities at managed

operations in 2023, tragically four colleagues

died in a plane crash while travelling to our

Diavik diamond mine in January 2024.

We are working closely with the authorities

to support their efforts to understand the

full facts of what happened.

Unfortunately, in 2023, we also experienced a

permanent damage injury at our Diavik mine.

The number of potentially fatal incidents (PFIs)

increased to 27, with vehicle collision and

rollover, contact with electricity and lifting

operations accounting for the highest number

of PFIs. Two of these PFIs were also

significant process safety incidents at our

RTIT Quebec Operations site in Sorel-Tracy,

which did not result in injuries. We have

heightened our focus on managing these risks

and have implemented measures in response

to the investigation.

Our all-injury frequency rate (AIFR) decreased

to 0.24, compared to 0.38 in 2022, as we

recorded fewer employee and contractor

injuries. The rate of injuries in our contractor

workforce reduced significantly, going from

0.42 in 2022 to 0.20 in 2023.

In 2024, we will continue our journey of

improvement, enabled by the safety maturity

model. Additionally, we will intensify our focus

on health, environment, and security to

achieve our objectives of creating a safe and

productive workplace for our employees and

contractor partners.

For more information about our global health and safety initiatives, see pages 71-72.

Market Insights

The titanium dioxide (TiO2) market saw a

downturn in demand in developed regions,

although there was a small improvement

towards the fourth quarter. Elevated feedstock

inventory also hampered TiO2 purchases,

leading to production cuts by major producers.

Borates prices also came under pressure as

weak construction markets globally impacted

underlying demand. Higher supply from

leading producers accumulated into inventory

as downstream demand underperformed.

The demand for IOC pellets in the European,

Japanese, and Korean markets was stable in

2023 despite weaker steel production amid

inflationary pressures. Following tentative

signs of stabilisation in the European steel

market in the middle of the year, pellet

demand and premiums came under downward

pressure by the end of the third quarter, and

headwinds in the Atlantic Basin persisted

through to the end of the year. Nevertheless,

the demand for Direct Reduction pellets

remained resilient in the Middle East and

North Africa on the back of firm steel

production in that region.

Downward pressure on lithium carbonate

prices emanated from the deceleration in

electric vehicle (EV) output growth and

inventory accumulation along the supply

chain. Supply from non-traditional regions

(Africa) entered the market, incentivised by

two years of elevated prices. Longer term,

lithium market fundamentals remain strong as

EV adoption continues to accelerate on

supportive government policies and supply

shortfalls requiring further investment.

Enabling the low-carbon transition

In 2023, our Minerals product group’s absolute

greenhouse gas (GHG) emissions were 3.7Mt

CO2e, a 6.7% decrease from 2022 levels and

0.1% lower than the 2018 equity baseline

(3.7Mt CO2e). We started the BlueSmeltingTM

demonstration plant at our RTIT Quebec

Operations, a new ilmenite smelting

technology that, if fully implemented, has the

potential to reduce the site’s overall GHG

emissions by up to 70%.

We announced we would build the largest

solar power plant across Canada’s territories

at Diavik Diamond Mine, featuring over 6,600

solar panels. It is expected to be fully

operational in the first half of 2024. In Boron,

California, we became the first open pit mine

in the world to fully transition our heavy

machinery from fossil to renewable diesel,

which brings an anticipated CO2e reduction of

up to 45,000 tonnes per year. At QIT

Madagascar Minerals, we commissioned the

8MW solar plant and 8.25 MWh lithium-ion

battery energy storage system, and we started

the construction of the 16MW wind project,

scheduled for completion by 2025.

We have also opened a new battery

manufacturing and testing research laboratory

within our Bundoora Technical Development

Centre in Melbourne, Australia, to test how our

minerals and other products will perform in

real-world applications, such as in EV

batteries.

For more information about our decarbonisation efforts in the Minerals product group, see our 2023 Climate Change Report at riotinto.com/ climatereport.

1.This represents the average number of employees for the year, including the Group's share of non-managed operations and joint ventures. Refer to page 215 for more information.

Strategic report

38 Annual Report on Form 20-F 2023 | riotinto.com

Minerals

Year ended 31 December	2023	2022	Change
Iron ore pellets and concentrates production¹ (million tonnes — Rio Tinto share)	9.7	10.3	(6%)
Titanium dioxide slag production ('000 tonnes — Rio Tinto share)	1,111	1,200	(7%)
Borates production ('000 tonnes — Rio Tinto share)	495	532	(7%)
Diamonds production ('000 carats — Rio Tinto share)	3,340	4,651	(28%)
Segmental revenue (US$ millions)	5,934	6,754	(12%)
Underlying EBITDA (US$ millions)	1,414	2,419	(42%)
Underlying EBITDA margin (product group operations)	30%	40%
Underlying earnings (US$ millions)²	312	854	(63%)
Net cash generated from operating activities (US$ millions)	548	1,522	(64%)
Capital expenditure (US$ millions)³	(746)	(679)	10%
Free cash flow (US$ millions)	(229)	814	(128%)
Underlying return on capital employed (product group operations)2, 4	13%	22%

1.Iron Ore Company of Canada (IOC) continues to be reported within Minerals.

2.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 'Income Taxes'.                                                                                                                                                                                                                                                 

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 (product group operations) excluding net interest divided by average capital employed.

Financial performance

Underlying EBITDA of $1.4 billion was 42%

lower than 2022, primarily due to lower prices

and higher costs. We experienced market

weakness for many of our products, in

particular for TiO2 feedstock, where underlying

demand for pigment was subdued on weak

real estate activity in the Americas, Europe

and China. This gave rise to lower sales

volumes and, in combination with the two

furnace failures at our RTIT Quebec

operations, resulted in higher unit costs.

Net cash generated from operating activities of

$0.5 billion was 64% lower than 2022, while

negative free cash flow of $0.2 billion reflected

the lower underlying EBITDA, higher working

capital due to market conditions and a modest

rise in capital expenditure.

Review of operations

Production of iron ore pellets and concentrate

at IOC of 9.7 million tonnes was 6% lower

than 2022 with challenges due to the wildfires

in Northern Quebec in the second quarter, as

well as extended plant downtime and

conveyor belt failures in the third quarter.

TiO2 slag production of 1,111 thousand tonnes

was 7% lower than 2022. Two furnaces at our

RTIT Quebec Operations remain offline

following process safety incidents in June and

July. In the fourth quarter, we decommissioned

an additional furnace, which is due for

reconstruction in 2024. As a result, we entered

2024 with six out of nine furnaces operating at

our RTIT Quebec Operations and three out of

four online at Richards Bay Minerals (RBM).

Borates production was 7% lower than 2022,

as we adjusted for decreased customer

demand, despite improved equipment

reliability.

Our share of carats recovered was 28% lower

than 2022, due to depleting one of three

underground pipes and reaching the end of life

for open pit mining.

For more information about our capital projects and future growth options, see pages 30-31.

Breakthrough technology:

Scandium, a case in point

Scandium is a critical mineral in

increasing demand for the energy

transition and modern technologies

such as aerospace, lasers and

microelectronics due to its alloying and

emerging high-tech properties. We are

combining scandium with our low-

carbon aluminium to produce an alloy

that is stronger, more flexible and more

resistant to heat and corrosion.

Today, our commercial scale

demonstration plant in Quebec uses an

innovative process to extract and

produce high-purity scandium oxide

from the waste streams of the existing 

TiO2 production, without any additional

mining.

This will make Rio Tinto one of the

largest producers of scandium in the

Western world. In two years, we have

gone from testing the extraction

process in a laboratory, to being able to

supply a large share of the global

scandium market.

In 2023, we acquired a high-grade

scandium resource in New South

Wales, Australia. The BurraTM

Scandium Project is a small, high-value

physical scandium asset, with a small

environmental footprint. When

operational, Burra will significantly

increase, and geographically and

operationally diversify, our annual

scandium production.

Scandium is emblematic of Rio Tinto’s

transformation in terms of what we

mine and how we mine.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 39

Our approach

to ESG

As temporary custodians of the

land where we operate, we are

entrusted with accessing the

world’s essential materials and

making them available for

society’s use.

These resources are finite, and we have a

responsibility to find better ways to extract the

full value from them in the safest and most

sustainable way possible.

We know that responsibly managing our

business impacts is fundamental if we want to

continue to grow and deliver on our strategy.

Two of our core objectives are to strengthen

our social licence and achieve impeccable

environmental, social and governance (ESG)

credentials. As part of these commitments, we

align our business priorities with society’s

expectations and ensure sustainability

considerations are at the core of every

decision we make.

Our shareholders, employees and host

governments expect us to find better ways to

lower our impact, decarbonise our operations

and increase circularity, while contributing to a

positive legacy for the host communities and

countries where we operate.

And we have a big role to play in the world’s

transition to a low-carbon future. The materials

we produce are essential in many low-carbon

technologies. It also means we must deliver

our own decarbonisation, alongside investing

in research and development that enables our

customers to decarbonise more quickly.

To meet our goals, we are focusing on

developing the right mindset and culture,

encouraging our people to work together to

find new solutions and building partnerships

with those who share our ambition for a more

sustainable future.

Solar panel plant at Gudai-Darri, the Pilbara, Western Australia. See our 2023 Climate Change Report for further information about this project.
40	Annual Report on Form 20-F 2023  |  riotinto.com

Our ESG

framework

We want to ensure all our

stakeholders benefit from the

success of our business. To do this,

our priorities and performance must

align with society’s expectations,

which are constantly evolving.

Each year we complete a materiality

assessment to understand what ESG issues

and topics matter most to, and have the

greatest impact on, our stakeholders and our

business. We gather information from internal

and external stakeholders via interviews,

surveys and reviews of publicly available

information. We ask them what is important

now and what they think will be important in five

to ten years. Some issues are identified as

higher materiality than others. Our ESG

framework describes how we manage and

report externally on these issues and how we

contribute to the United Nations Sustainable

Development Goals (UN SDGs).

The insights we gather through this process

guide our work towards achieving impeccable

ESG credentials and strengthening our social

licence. This includes providing people and

communities with economic opportunities;

safeguarding and promoting the health, wellbeing

and human rights of people and communities;

combating climate change; and being excellent

stewards of the natural resources entrusted to

us. Our commitment to running a transparent,

values-based, ethical business underpins all

our work.

Environment			Social					Governance
Low intensity materials	Environmental stewardship	Mining & metals practices	Heritage, culture & Indigenous Peoples	Human rights	Talent, diversity & inclusion	Health, safety & wellbeing	Supporting social & economic opportunity	Transparent, values-based ethical business
Climate change	Water management	Tailings & mineral waste management	Cultural & heritage site management	Respecting human rights	Inclusion, diversity & equity	Health, safety & wellbeing	Local community relations	Business integrity & governance
End-to-end materials management	Biodiversity & ecosystems	Closure, post- mining & land rehabilitation			Employment & talent retention	Pandemic response & public health	Impact of technology	ESG transparency & disclosure
Future-proof assets	Industrial environment impacts							Business performance
Key l Higher materiality l Medium materiality l Lower materiality								Risk management & cybersecurity
								Responsible tax & royalty payments
								Supply chain transparency
Each material topic above appears under either the environment, social or governance theme to which it primarily relates. However, there is crossover among ESG themes, meaning some material topics can be relevant to two or even all three themes. Accordingly, we work with themes and topics holistically, not in silos.

To achieve impeccable ESG credentials,

we aim to:

–Provide people and communities with social

and economic opportunities so they can live

and grow sustainably.

–Play our role to advance a fair and socially

inclusive energy transition.

–Build a healthy, diverse and inclusive

workforce, support local communities to

achieve their goals and aspirations, and

deliver positive social outcomes.

–Decarbonise our operations (Scope 1

and 2) and our value chains (Scope 3) and

maximise the full value of our resources.

–Encourage circularity and provide critical

minerals that the world needs to advance.

–Minimise environmental and heritage

impacts and act as a responsible steward of

water and biodiversity, to strengthen our

resilience to a changing environment.

The UN SDGs

Our approach to ESG aligns with the UN SDGs,

which are recognised as the global blueprint for a

sustainable future. The SDGs are a useful

reference point to ensure we direct our efforts

where they can deliver the most impact and our

focus areas reflect society’s expectations. We

focus on goals that we feel are most relevant to

operating our business responsibly and where

we can have the biggest impact. Our two lead

goals are SDG 12 (responsible consumption and

production) and SDG 8 (decent work and

economic growth).

Our operations also contribute to eight

supporting SDGs (3, 4, 5, 6, 9, 10, 13 and 15),

while SDG 17 (partnerships for the goals)

reflects our approach to sustainability and is

fundamental to the way we run our business.

For more information about our approach to the UN SDGs see riotinto.com/sustainabilityapproach.

What is important now

Our internal and external stakeholders are

broadly aligned on the four highly material ESG

topics. Climate change is the most important

topic and includes greenhouse gas emissions

reduction, climate resilience and adaptation, and

just transition. Respecting human rights; cultural

and heritage site management; and health,

safety and wellbeing are the other three highly

material topics.

For our business, the safety and wellbeing of our

people remains our highest priority. Biodiversity

and ecosystems; business integrity and

governance; ESG transparency and disclosure;

inclusion, diversity and equity; local community

relations, tailings and mineral waste

management; and water management are also

material topics as we strive to build a sustainable

business.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 41

What will be important in the future

Our internal and external stakeholders feel that

climate change will only continue to increase in

importance over the next decade. Biodiversity

and ecosystems; the impact of technology;

respecting human rights; risk management and

cybersecurity; business integrity and

governance; supply chain transparency; and

end-to-end materials management will also

increase in importance.

Water management will continue to be an

extremely important topic in the future due to

the reliance of local communities and our

mining operations on this increasingly scarce

resource. Managing all these ESG topics well

will be integral to our social licence to operate

and the success of our business.

Reporting our performance

Our materiality assessment records the

threshold at which an issue or topic becomes

important enough for us to report on

externally. The importance of a topic is

based on the significance of its impact on

stakeholders. An ESG materiality assessment

differs from financial materiality, which may

use financial metrics or other quantitative

analyses to determine what would be

considered a significant or material impact.

As a member of ICMM, we commit to reporting

on our ESG 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 ESG areas.

In 2022, all 29 Rio Tinto managed

operating and refining assets completed

a self-assessment against the ICMM PEs.

A self-assessment was also completed

for Rio Tinto Corporate. The criteria for

prioritising 26 of our 29 operating assets

for validation, within the three year cycle

(2023-2025), was also disclosed at this time. 

In 2023, on-site third-party validations were

completed for 12 of our priority operating and

refining assets. The validation reports received

to date demonstrate a high level of alignment

between the self-assessment and validation

outcomes, with identification of relevant areas

for improvement. Information on the 2022 self-

assessment or 2023 validation results are

presented in the ICMM PE Summary tab in the

2023 Sustainability Fact Book. We have

continued to improve our reporting to meet

additional disclosure requirements, including

the ICMM Social and Economic Reporting

Framework (SERF). In 2023 we have

disclosed our performance against most of the

SERF indicators.

The majority of our ESG reporting is

incorporated into this Form 20-F and

supplemented by our 2023 Sustainability Fact

Book containing current and historical data on

topics including health, safety, environment,

climate, communities, human rights,

responsible sourcing, ICMM PEs

and transparency.

For more information see our 2023 Sustainability Fact Book at riotinto.com/sustainabilityreporting.

Governance and assurance

The Sustainability Committee oversees

strategies to manage social and environmental

risks, 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, 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 111-112.

This year, the Group’s auditor KPMG was

again engaged to provide the Directors of

Rio Tinto with assurance on selected

sustainability subject matters. KPMG’s limited

assurance statement satisfies the

requirements of subject matters 1 to 4 of the

ICMM assurance procedure.

For more information about our external auditors and internal assurance see page 109.

Non-financial and sustainability

information statement

The ESG section includes information required

by regulation in relation to:

–Environmental and climate matters,

including Task Force on Climate-related

Financial Disclosure (TCFD) disclosures

(pages 44-58).

–Our employees (pages 71-74).

–Social matters (pages 66-75).

–Human rights (page 75).

–Corruption and bribery (pages 76-77).

Other related information can be found here:

–Our business model (page 9).

–Material risks and how they are managed

(pages 80-88).

–Non-financial key performance indicators

(page 43).

Notes on data

The data summarised in this ESG 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.

How we report

	Annual Report	Climate change reports1	Tax reports2	Human rights reports3	Sustainability Fact Book
Linking sustainability to purpose and strategy	l	l
Materiality and material topics	l
Climate change	l	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 Climate Change Report and 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology.

2.Includes our Taxes Paid Report and Country-by-Country Report.

3.Includes our Modern Slavery Statement and our Voluntary Principles on Security and Human Rights Report.

For more information see riotinto.com/sustainabilityreporting.

Our ESG framework continued

42 Annual Report on Form 20-F 2023 | riotinto.com

2023 performance against ESG targets

Targets	2023 performance
Reach zero fatalities and eliminate workplace injuries and catastrophic events.	Zero fatalities at managed operations (2022: 0 fatalities). –All-injury frequency rate (AIFR) at 0.37 (target: 0.40). (2022: 0.40). –1.53 million critical risk management (CRM) verifications. (2022: 1.37 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.	6 assets achieved an exposure reduction to known health risks (airborne contaminants and noise). (2022: 9 assets).
Reduce the rate of new occupational illnesses each year.	27.15% increase in the rate of new occupational illnesses since 2022
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	5.5% reduction in Scope 1 and 2 greenhouse gas emissions below our 2018 baseline (2022: 5.2%).
Disclose permitted surface water allocation volumes, annual allocation usage and the estimated surface water allocation catchment runoff from average annual rainfall for all managed operations by 2023. Achieve local water stewardship targets for selected sites by 2023.	5 of the 7 water stewardship targets attained by 2023 (2022: 5 of 7). For more information about individual water target performance in 2023, see pages 60-61.
Achieve our global Communities and Social Performance (CSP) targets by 2026: –Year-on-year increase in contestable spend sourced from suppliers local² to our operations. –All sites to co-manage cultural heritage with communities and knowledge holders by 2026. –70% of total social investment to be made through strategic, outcomes-focused partnerships by 2026. –All employees in high risk human rights roles to complete job-specific human rights training by 2024. –All employees to complete general human rights training by 2026.	–We sourced 16.8% of contestable spend from suppliers local to our operations. This was a 2.3% increase from 2022. Progress for each product group is included in the 2023 Sustainability Fact Book. –We independently assessed 25 assets against the cultural heritage co- management maturity framework with 8 assets performing at level 4 (integrated), 7 at level 3 (defined), 9 at level 2 (emerging) and 1 at level 1 (learning)3. –Outcome indicator framework and strategic partnering principles were developed and endorsed in 2023 with self-assessment and baseline data to be collected in 2024. –Our human rights team delivered 35 tailored training sessions, targeting 11 assets and 12 functional teams globally. We recorded 2,441 completions of our modern slavery e-learning module, representing 66% of employees and contractors4 in modern slavery high-risk roles.
Improve diversity5 in our business by: –Increasing women in the business (including in senior leadership6) 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.	–24.3% of our workforce were women, up 1.4% from 2022. –25% of executive leaders were women, no change from 2022. –30.1% of senior leadership were women, up 1.8% from 2022. –30.8% of Board roles were held by women, up 0.8% from 2022. –51.6% of our graduate intake were women, down 1.6% from 2022. –37.6% of our graduate intake were from places where we are developing new businesses7, up 1.6% from 2022.
Improve our employee engagement and satisfaction.	1 point increase in our employee satisfaction score (eSAT8) since 2022 (from 73 to 74) (2022: 2 point increase).

1.While we expect to have made financial commitments to abatement projects totalling more than 15% of our emissions by 2025, achieved emissions reductions will lag this.

2.We take a “site-centric” view of the definition of local, which allows operations to establish their own definition, based on a set of common principles. These principles require that each operation,

in defining “local” takes into consideration its geographic, social and economic area of impact as well as ownership. For example, suppliers located within the Pilbara region of Western Australia

are defined as “local” for Rio Tinto Iron Ore’s Pilbara Operations. This approach is consistent with international best practice and aligns with the ICMM Social and Economic Reporting Framework

guidance.

3.The cultural heritage co-management maturity framework sets out a maturity model consisting of five levels of maturity – from "learning the practice" to "leading practice". There are six categories

against which a site will be evaluated to determine its level of maturity, covering various aspects of cultural heritage management.

4.Contractors refers to category 1, 2 and 3 contractors.

5.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.

6.We define senior leadership as Managing Directors, General Managers, Group Advisers and Chief Advisors.

7.Identifying with a nationality is not mandatory. More than 48% of our graduates have not formally reported a nationality.

8.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.

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Annual Report on Form 20-F 2023 | riotinto.com 43

Environmental performance Our purpose is to find better ways to provide the materials the world needs. The low-carbon transition is at the heart of our business strategy: we are focusing on growing production of the materials essential for the energy transition; decarbonising our operations; and partnering with our customers and suppliers to decarbonise our value chains.

Climate change

Our operational emissions targets are

ambitious - to reduce emissions by 15% by

2025 and 50% by 2030 relative to 2018 levels,

reaching net zero by 2050. Our targets cover

more than 95% of our reported Scope 1 and 2

emissions and are aligned with 1.5°C

pathways. We adjust our baseline to exclude

reductions achieved by divesting assets and

to account for acquisitions.

Our definition of net zero applies to our

operational (Scope 1 and 2) emissions on an

equity basis. To reach net zero we will need to

decarbonise our operations as far as

technically and commercially practical, and

address all the remaining emissions with

carbon dioxide removals from the atmosphere

and long-term storage.

To tackle our Scope 3 emissions across our

value chains we are committed to helping our 

customers and suppliers achieve their targets

a decade earlier - reaching net zero by 2050.

In particular, we continue to work with our

customers to develop and scale up the

technologies to decarbonise steel and

aluminium production.

In this section, we comply with the

requirements of Listing Rule 9.8.6(8)R by

including climate-related financial disclosures

consistent with the Task Force on Climate-

related Financial Disclosures (TCFD)

recommendations and recommended

disclosures.

In determining our compliance with all

11 of the TCFD recommendations and

recommended disclosures, we have

considered both Section C of the TCFD Annex

entitled “Guidance for All Sectors”

and Section E of the TCFD Annex entitled

“Supplemental Guidance for Non-Financial

Groups”. The climate-related financial

disclosures made within this section

also comply with the requirements of

the Companies Act 2006 as amended

by the Companies (Strategic Report) (Climate-

related Financial Disclosure)

Regulations 2022.

Climate change matters are also integrated

into other parts of this report, such as the key

performance indicators (KPIs), material risks,

and notes to the financial statements.

Progress on our Climate Action Plan (CAP) is

material to the successful implementation of

our Group strategy. This is summarised in the

metrics and targets area of this climate

change section. For supplementary

information, please see our 2023 Climate

Change Report and 2023 Sustainability Fact

Book. We will continually enhance our climate

reporting in response to emerging standards

and requirements set by the International

Sustainability Standards Board and

national regulators.

“Many 1.5°C climate change

scenarios rely on significant

deployment of carbon

dioxide removals to get to

net zero, which may not be

realistic. No single company

or country can halt the

course of climate change

alone, so partnering to

reduce emissions is vital.”

Jakob Stausholm

Chief Executive

Environmental monitoring. Kennecott, US
44	Annual Report on Form 20-F 2023  |  riotinto.com

Climate-related governance

A)Describe the board’s oversight of climate-related risks and opportunities

B)Describe management’s role in assessing and managing climate-related risks and opportunities

Board, committee and management structure related to climate change			Summary of 2023 activities
	The Board
Direct and monitor	Climate change is a material and strategic topic for our business and is part of ongoing discussion and analysis at the most senior levels of management and the Board. It is also an important topic when the Board and Executive Committee engage with investors and civil society organisations. The Board approves our overall strategy, policy positions and climate disclosures within this report and the Climate Change Report. The Board set the 2025, 2030 and 2050 emissions targets, and monitors performance against targets and operational resilience. The Chair of the Board is responsible for our overall approach to climate change. The Board delegates specific responsibilities to Board committees and the Chief Executive. Climate change and the low-carbon transition are routinely on the Board’s agenda, including as part of strategy discussions, risk management, financial reporting and executive remuneration. The Board considers climate-related matters as we develop and implement our strategy and make investment decisions. The low-carbon transition is at the heart of our business strategy and aligned with our four objectives. For additional information, see our Strategic context and Our strategy sections on pages 14-16.		–Held dedicated meetings to focus on decarbonisation including large-scale renewable projects and repowering our Pacific Aluminium Operations. –Reaffirmed our strategy and engaged with investors and civil society organisations following the publication of our 2022 Climate Change Report. –Approved the 2022 Climate Change Report and climate-related disclosures in the 2022 Annual Report notes to the financial statements.
		For more information on the Board, their activities, and composition see pages 92-104.
	Sustainability Committee The Sustainability Committee maintains oversight of key sustainability areas that may be impacted by climate change, such as biodiversity and water. This includes assessing the effectiveness of associated controls and ensuring the operational-level resilience of the Group.		–Received and discussed the following reports: Physical resilience to climate change, Boron water control framework follow-up, Environment performance and maturity update, and Proposed approach to nature commitments.
		For more information see pages 111-112.
Inform and report	Audit & Risk Committee The Audit & Risk Committee addresses how climate issues (such as climate policy and our scenarios) impact the financial statements. The committee review all material accounting estimates and judgements relating to financial reporting, including those where climate issues are relevant and also appoint the external auditors, who assure greenhouse gas (GHG) emissions and ensure the effectiveness of the risk management framework.		–Reviewed and approved material climate- related accounting estimates and judgements relating to financial reporting. –Considered the relevance of climate- related risks when preparing and approving the Group’s Annual Report.
		For more information see page 107-110.
	People & Remuneration Committee The People & Remuneration Committee ensures the Group’s remuneration structure and policies include climate-related performance metrics and reward individual executives fairly and responsibly.		–Assessed the annual executive performance against climate metrics and approved incentives and remuneration revisions related to the way climate change is incorporated into incentives.
		For more information see page 113-145.
Management role
Investment Committee The Investment Committee reviews and approves the Group’s capital expenditure in relation to abatement projects and climate change research and development. Decarbonisation investment decisions are made under a dedicated evaluation framework which considers the value of the investment and impact on cost base, the level of abatement, the maturity of the technology, the competitiveness of the asset and its policy context and alternative options on the pathway to net zero. Projects are also assessed against our approach to a just transition, with consideration to the impact on employees, local communities and industry.
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. Risk management, portfolio reviews, capital investments, annual financial planning and our approach to government engagement integrate our approach to climate change and emissions targets. The annual plan process focuses on the short-term (up to two years). The new growth and decarbonisation strategy is part of the medium term planning process. The Chief Executive leads the strategy process with the Executive Committee each year and, in 2023, reaffirmed the decision to put the low-carbon transition at the heart of our business strategy. Remuneration: Our Chief Executive’s performance objectives in the short-term incentive plan (STIP) includes 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 Technical Officer, and other members of senior management. Decarbonisation is also included as a performance measure in the long-term incentive plan (LTIP). See pages 119-141 for our Remuneration Policy, 2023 outcomes, and the incorporation of climate-related measures in the LTIP and STIP.
Energy and Climate Team In 2022, we established a central team, Rio Tinto Energy and Climate (RTEC), to deliver progress on our CAP. This is led by the Chief Decarbonisation Officer, who reports to the Chief Technical Officer and is accountable for all aspects of the CAP. The RTEC team is structured according to the 6+1 programs that drive decarbonisation across our operations. Two additional teams complete the RTEC organisation: a Decarbonisation Office that monitors and forecasts GHG emissions, tracks investment decisions and coordinates our approach to physical climate risks; and a Climate Policy and Advocacy team. Rio Tinto Commercial drives the approach to Scope 3 emissions, given its responsibility for procurement, shipping and sales to our customers. The Decarbonisation Office prepares a quarterly progress report for the Executive Committee, which includes operational emissions and progress on abatement projects across the 6+1 programs and other areas of our CAP.

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Annual Report on Form 20-F 2023 | riotinto.com 45

Climate-related strategy and risk management

Strategy

A)Describe the climate-related risks*

and opportunities the organisation

has identified over the short,

medium, and long term.

B)Describe the impact of climate-

related risks and opportunities on

the organisation’s businesses,

strategy and financial planning.

C)Describe the resilience of the

organisation’s strategy, taking into

consideration different climate-

related scenarios, including a 2°C

or lower scenario.

Risk management 

A)Describe the organisation’s

processes for identifying and

assessing climate-related risks.

B)Describe the organisation’s

processes for managing climate-

related risks.

C)Describe how processes for

identifying, assessing, and

managing climate-related risks are

integrated into the organisation’s

overall risk management.

*We typically refer to risks as both threats and

opportunities, but follow TCFD wording in

this section.

Our quantification and assessment of climate-

related risks and opportunities is embedded

within our Group risk management framework.

This includes six core elements that are

continually reviewed to ensure that we are

effectively managing current risks and preparing

for emerging risks.

In 2022, we launched the physical resilience

program which included a climate risk and

resilience assessment methodology. This

guideline provides our assets and product

groups with a bottom-up assessment

framework to quantify physical climate risk and

focuses on the following:

–Climate modelling assumptions: to guide

the selection of future emission scenarios

and time horizons to support bottom-up risk

assessment and analyses.

–A risk assessment process: to identify and

evaluate climate-related risks and

opportunities. 

–A risk management framework: to plan and

implement risk responses, communicate

risks with stakeholders and maintain and

update risk information. 

Our three lines of defence provide assurance

that risks are effectively managed in line with

our policies, standards and procedures. While

risk management is the accountability of our

leaders, all employees are empowered to

identify and manage risks at the point that they

arise in their business. For further detail

regarding the Group risk management

process, the risk factors of the Group and how

ESG has been incorporated into these, see

pages 78-88.

We use scenarios to identify and assess the

climate-related risks and opportunities impacting

our business in the, medium and long term. We

use market analysis for our short-term outlook

rather than the scenarios which provide a longer

term view out to 2050. For climate change

planning purposes, we define short term as up to

two years, medium term as two to ten years and

long term as beyond ten years.

Our short-term time frame aligns with our annual

planning process. The medium-term time frame

aligns to extended planning horizons that align

with our growth projects and emissions

abatement projects. Our long-term time frame

considers the full lifespan of our mining assets

and infrastructure, the long-term extent of our

operations, and the continued impact climate

risks and opportunities are expected to have on

the business.

Low-carbon transition

strategy and risk

management

Through our Group risk assessment process

and climate scenario analysis, it is evident that

the low-carbon transition poses numerous

transitional risks and opportunities for

our business.

Based on our analysis of these risks and

opportunities, their impact on the Group, and the

role played in the transition, we have identified

numerous transition-related material risks and

associated opportunities that have been

incorporated into our Group risk strategy.

The materiality, and subsequent prioritisation, of

each risk has been calculated through assessing

the likelihood of an impact occurring as well as

the effect this would have on the Group’s free

cash flow or business value.

The Group’s climate change and the low-carbon

transition uncertainties, based on our risk

management process, have been assessed

through the following material risks:

2.Preparing our Iron Ore business to meet the

demand for green steel.

3.Building trusted relationships

with communities.

4.Minimising our impact on the environments

we work in and building resilience to

changes in those environments, including

climate change and natural disasters.

7.Delivering on our growth projects.

8.Achieving our decarbonisation targets

competitively.

9.Conducting our business with integrity,

complying with all laws, regulations,

and obligations.

See pages 82-88 where we have highlighted

the key regions impacted by these risks, our

risk management responses, and the relevant

groups with oversight of each process.

The numerous risks and opportunities

resulting from the low-carbon transition affect

our portfolio in a variety of ways. The table on

page 48 provides an overview of the varying

impacts that the low-carbon transition has on

our overall portfolio.

For more information on financial reporting considerations and sensitivities related to climate change and the low-carbon transition, see the notes to our financial statements on pages 162-165.

Capital allocation and

investment framework

Decarbonisation investment is derived from

the Group’s capital allocation framework and

aligned to our 2025 and 2030 Scope 1 and 2

emissions targets.

Our target to reduce emissions by 50% by 2030

relative to 2018 levels remains unchanged.

However, we now believe that achieving this will

require less capital investment and more

operating expenditure. We originally estimated

that approximately 3GW of renewable power

would be needed to decarbonise our operations

in the Pilbara - 1GW to replace gas-fired power

generation and 2GW to decarbonise our diesel-

based fleets. Carbon reduction from economically

viable, large-scale fleet electrification has always

been expected post-2030, however delays in the

availability of this technology mean that we now

do not expect to invest in the same scale of

Pilbara renewables pre-2030. We remain

committed to developing 1GW of renewable

energy capacity in the Pilbara, however, we now

estimate that 600 to 700MW capacity is required

by 2030.

To accelerate our emissions abatement, we will

take advantage of commercial solutions that can

be ready in the market this decade and avoid

lengthy project development schedules.

Therefore, although our 2030 emissions target

remains unchanged, we now believe that this can

be met with $5bn-$6bn of capital investment,

down from previous guidance of $7.5bn. This

excludes capitalised RECs, voluntary offsets and

compliance offset costs.

The table below shows capital and operational

expenditure on decarbonisation. Group figures

have been disclosed on page 173-174 and 184.

Decarbonisation expenditure

Capital expenditure on abatement projects

$94m

(2022: $86m)

Carbon credits and renewable energy

certificates (RECs) (intangible assets)

$61m

(2022: $33m)

Operational expenditure

$234m

(2022: $138m)

Investments

$36m

(2022: $42m)1

1.Our 2022 figures have been restated to include Office of

Chief Scientist and battery material investments.

Environment continued

46 Annual Report on Form 20-F 2023 | riotinto.com

Climate change scenarios

Our scenario approach is reviewed every year

as part of our Group strategy engagement with

the Board. We have not fundamentally

changed the scenarios presented in 2022 or

the analysis undertaken in early 2023 to

evaluate the resilience of our business under

different transition-related scenarios. Our

scenario framework focuses on two prevailing

macro-level business concerns: the rate of

global economic growth and the pace of

climate action, each heavily influenced by

global geopolitics and governance. Our two

core scenarios (Competitive Leadership and

Fragmented Leadership) are used to generate

a central reference case for commodity

forecasts and valuations. Additional scenarios

(including our Aspirational Leadership

scenario) are used to further evaluate the

positive and negative effects of the energy

transition across our portfolio and stress test

investment decisions. We have designed our

Aspirational Leadership scenario with the aim

or reaching net zero by 2050, to help us better

understand the world on a 1.5°C pathway and

what this would mean for our business.

We do not undertake climate modelling

ourselves, but determine the approximate

temperature outcomes in 2100 by comparing

the emissions pathways to 2050 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. The

emissions pathway of Aspirational Leadership

is most closely aligned with the IPCC’s shared

socio-economic pathway 1 (SSP1-1.9) with

emissions reaching net zero by 2050, which

limits warming to 1.5°C. The emissions

pathway in Competitive Leadership limits the

global temperature increase to 1.6-2.0°C

(SSP1-2.6). Fragmented Leadership’s

emissions pathway is between SSP1-2.6 and

SSP2-4.5, so the global temperature increase

is less than 2.5°C by 2100. For physical risk,

we also use the IPCC’s highest emissions

scenario (SSP5-8.5) in our bottom-up asset-

level physical risk and resilience assessments

and other scenarios for our financial risk

modelling (see page 163 for more

information). So, when assessing risks and

opportunities to the business we use a 1.5°C-

aligned scenario to assess a fast low-carbon

transition and we use the highest emissions

and high temperature outcome scenario

(SSP5-8.5) to assess physical climate risks.

While there are many uncertainties about how

a changing climate may negatively affect

gross domestic product (GDP) growth,

physical impacts of climate change are

integrated into the GDP growth assumptions in

our three scenarios. These are most

significant in Fragmented Leadership and

least significant in Aspirational Leadership.

Aspirational Leadership	Competitive Leadership	Fragmented Leadership
Aspirational Leadership reflects our view of a world of high growth, significant social change and accelerated climate action with all countries setting new Nationally Determined Contributions (NDCs) that collectively achieve net zero emissions by mid-century. We believe that despite geopolitical differences, major economies tend to work together through multilateral frameworks and proactively work towards limiting temperature change to 1.5°C by 2100. While there may be temperature overshoot in many 1.5°C scenarios, there is limited risk of this in Aspirational Leadership. Although Aspirational and Competitive Leadership share similar GDP growth, higher carbon prices under Aspirational Leadership result in lower global emissions.	Competitive Leadership reflects a world of high growth and strong climate action post-2030, with change driven by policy and competitive innovation. A proactive reform environment encourages stronger business innovation, higher investment and improved productivity. This allows global GDP to continue growing at close to recent historical levels with a growing contribution from India and other developing countries. Carbon emissions are slightly higher than those in Fragmented Leadership by 2030 due to increased GDP growth. However, these decline over time as carbon prices continue to rise post-2030. Nations drive toward achieving their Glasgow Climate Pact commitments, resulting in global GHG emissions falling from 54Gt CO2e today to 21Gt in 2050.	Fragmented Leadership is characterised by limited progress on policy reform with volatile low growth. The business environment is defined by weak final demand and greater uncertainty, and requires close ties with governments to manage risk. It is a world defined by geopolitical and domestic tensions, spurred by populist agendas that offer leaders little opportunity to build consensus around reform and environmental agendas. Nations eventually achieve their 2030 NDCs as agreed in Paris in 2015, but abandon further progress resulting in flat global emissions post-2030. Carbon prices track alongside Competitive Leadership levels until 2030, but remain constant subsequent to this, resulting in increased global emissions.

Key scenario metrics1	Aspirational Leadership		Competitive Leadership		Fragmented Leadership
Global temperature outcome in 2100	1.5°C		1.6-2.0°C		2.1-2.5°C
	2030 Outcome	2021-2050 CAGR	2030 Outcome	2021-2050 CAGR	2030 Outcome	2021-2050 CAGR
Global average carbon prices in 2030, (2021 US$/t CO2e)	59	9%	42	8%	42	3%
Global emissions, Gt CO2e	40	-11%2	50	-4%	50	-1%
Global energy demand, mtoe	10,500	0.3%	11,000	1%	10,300	0.2%
Global GDP growth (PPP), %	4%	4%	4%	4%	3%	2%
Energy intensity of global GDP, toe/$1,000 2015 PPP	0.1	-3%	0.1	-3%	0.1	-2%
Carbon intensity of total energy, gCO2/MJ	40	-13%	45	-5%	45	-2%
Global energy from electricity, mtoe	2,900	4%	2,900	4%	2,700	2%
Global wind and solar capacity, GW	9,800	11%	7,500	10%	5,700	7%
EV penetration by 2030 (%)3	70	11%	60	10%	40	10%
Finished steel demand (relative to 2021)	>110	1%	>110	1%	<100	–%
Aluminium demand (relative to 2021)	>130	2%	>130	2%	>120	1%
Copper demand (relative to 2021)	>150	3%	>150	3%	>130	2%

1.These metrics have been extracted from our scenarios modelling and have been rounded to avoid the impression that they are precise predictions. Mtoe = Million tonnes of oil equivalent, PPP =

purchasing power parity.

2.11% p.a. decline in CO2 emissions based on 2021-49 period in net zero pathway (by 2050), emissions in 2030 are highest in Competitive Leadership due to high GDP growth.

3.2021-50 compound annual growth rate (CAGR) based on global electric vehicle (EV) sales.

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Annual Report on Form 20-F 2023 | riotinto.com 47

Our overall portfolio risks and opportunities in the low-carbon transition

Key

	Aspirational Leadership		Competitive Leadership		Fragmented Leadership
Iron Ore		Short term: There is limited transition risk or opportunity to the Iron Ore business in the short term as the impacts of carbon pricing regulation is relatively low. Slow transition in the steel sector towards low-carbon technology limits risk to Pilbara operations. GDP growth has a stronger influence on iron ore price than climate change policy
		Lower medium-term demand versus Competitive Leadership due to higher scrap-use affecting Pilbara products (recovers post 2040)		Strong global GDP growth and continued urbanisation support iron ore demand including for Pilbara products		Slowdown in China and global GDP growth erode demand, creating margin pressure across the portfolio
		Large increases in carbon pricing and penalties drive demand for high-grade iron ore supporting Simandou and Iron Ore Company of Canada (IOC)		Stronger customer preference for Simandou and IOC ores for lower-carbon traditional and emerging steelmaking		Smaller regional increases in carbon prices relative to the other scenarios help preserve longer-term margins for low-cost, Tier 1 Pilbara ores
Aluminium		Short term: Current carbon pricing regulation raises operational costs for carbon intensive assets, notably our refineries and smelters in Eastern Australia. Limited transition related short-term demand growth for aluminium
		Higher carbon penalties put pressure on emissions intensive refining and smelting operations		Competition to secure large-scale firmed renewable electricity to repower coal- based Pacific Aluminium Operations		China slowdown and production cap on primary aluminium reduce demand for seaborne bauxite
		Strong GDP growth and EV penetration support demand with value upside for hydro-based smelters (more pronounced in Aspirational Leadership)				Slowing demand and low-carbon penalties greatly reduce value upside of ELYSISTM and hydro-based smelters
		Higher carbon penalties support ELYSIS™, hydro-based smelting assets in Quebec and repowering projects in Australia
Copper		Short term: limited risk of carbon pricing regulation on copper operations given their location in the US, Mongolia and Chile. Some transition related short-term demand growth for copper given increasing electrification energy system
		Strong GDP growth and accelerated EV penetration and global electrification (backed by renewable electricity) support demand growth and margins across the portfolio				Lower demand growth and poor carbon policy reduce margins and upside for low- carbon smelting and refining (Kennecott and Escondida)
		Pressure to meet rapid demand growth supports growth projects (and NutonTM) if they satisfy environmental and social requirements
		Environmental and social approval hurdles for new projects including Resolution Copper and La Granja				Geopolitical tensions could reduce joint venture partnership opportunities and create potential engineering, procurement and construction and logistical issues
Minerals		Short term: Potential for carbon penalties to raise operational costs for emissions intensive minerals operations in Canada and South Africa. Some transition-related short-term demand growth for minerals that support electrification
		Accelerated uptake of EVs and battery storage solutions supports growth projects (Rincon and Tamarack joint venture)		Strong outlook for battery materials but international competition for greenfield and mergers and acquisitions opportunities limit growth options		Reduced battery material growth opportunities but resilience from operating high-grade TiO2 assets
		Increasing ESG scrutiny of new projects and more stringent regulations				Supply disruption risks and volatility bolster demand for precious metal and critical mineral by-products
		Potential for carbon penalties to raise operational costs for emissions intensive downstream processing of TiO2 and battery materials

Our approach: decarbonisation

and producing materials needed

for the low-carbon transition

The energy transition is a key driver of

commodity demand today and will continue to be

so over the next two decades. This will come on

top of the demand growth from continued

urbanisation and industrialisation (particularly in

emerging economies) and it will trigger a new

phase of demand growth in developed

economies, which have faced saturating demand

over the past two decades.

While the low-carbon transition is expected to

create additional demand for our commodities

(and therefore an opportunity to provide transition

materials), the outlook for demand varies

significantly between our scenarios as a function

of GDP growth, technology uptake, and scrap

supply and use. Different demand trajectories,

combined with industry supply responses and

global carbon policy evolution, determine the

market prices for our three major commodities

and implications for our Group-level and asset

valuations.

We aim to invest in quality assets that give

robust returns under our scenarios, creating a

resilient portfolio with a significant upside to

the energy transition. We have continued to

invest in our copper portfolio through

traditional assets such as Oyu Tolgoi and

Kennecott, as well as early-stage application

of our NutonTM copper leaching technology.

In aluminium, we continue to develop

emissions-free smelting technology with

ELYSIS™ trials. Significant further research

and development is needed, including to scale

up the technology towards larger commercial-

sized cells, before the broader implementation

of ELYSIS™ is possible. For this reason, we

do not expect this new technology to achieve

emissions abatement across our smelters

before 2030.

We believe that global iron ore demand will

remain strong with a premium on higher grade

ore needed for the production of green steel in

Direct Reduction Iron-Electric Arc Furnace

(DRI-EAF) steel processing. This includes the

higher grade ores from the IOC and our

Simandou project. Demand for these ores

increases in our Aspirational Leadership and

Competitive Leadership scenarios.

In other commodities, we are evaluating a

range of opportunities to produce lithium as

well as making demonstrable progress on

various critical mineral developments that are

essential for the energy transition.

The pace of technological development is

uncertain, which could delay or increase the

cost of our decarbonisation efforts as well as

the ability to fully capitalise on transition

opportunities.

For additional information on the resilience of

our portfolio, see page 163.

Environment continued

48 Annual Report on Form 20-F 2023 | riotinto.com

Short term (less than 2 years) Medium term (2-10 years) Medium and long term Long term (beyond 10 years) No risk

High opportunity Moderate opportunity Moderate risk High risk

Physical climate risk

and resilience

Our business and wider value chain

experience a range of impacts associated with

extreme weather. As the climate continues to

change, so will the frequency and magnitude

of events and impacts associated with

extreme events. Proactive risk management is

crucial for us to operate safely, productively,

and profitably, well into the future. 

Physical climate risk refers to the adverse

impacts that arise from extreme weather

and changes in climatic conditions and are

typically categorised into two main types: 

–Acute climate risks involve sudden and

extreme events that can lead to rapid and

severe impacts. Examples include tropical

cyclones, wildfires, heatwaves, extreme

rainfall, flooding and hail. Acute risks can

disrupt operations, damage infrastructure,

impact our people and communities, and

result in production downtime and increased

operational costs.

–Chronic climate risks manifest gradually

over time, encompassing challenges such

as rising sea levels, increasing air

temperatures, and longer-term changes in

precipitation patterns. Chronic risks are

characterised by a slower onset and

progression, requiring longer-term

adaptation strategies and planning. Chronic

risks can result in reduced resource

availability, increased costs (such as water

and energy), impacts on productivity and

health and wellbeing of our workforce, and

can potentially affect supply

chain resilience. 

The combination of these two types of climate

risk can lead to a compound extreme (such as

a landfalling tropical cyclone coupled with

higher sea levels) and can accentuate related

impacts. 

Building resilience to a changing climate

means having the capacity to anticipate, adapt

to, and recover from the impacts of extreme

weather events, ensuring the long-term

viability of our assets, our people and

communities, and broader value chains. 

Our strategy and approach 

Taking and managing risk responsibly is

essential to operating and growing our

business safely, effectively, and sustainably.

Enhancing our resilience to physical

climate risk is an important component

of our approach to climate change and

is embedded within our risk management

and internal controls framework. Our approach

to physical climate risk and resilience is

centred around four pillars that guide our risk

management and work on adaptation, and is

summarised below.

Our approach

Weather/climate analytics and insights	–Short (days) and medium (weeks-months) term: weather forecasting, climate outlooks and natural catastrophe models. –Long term (decades): downscaled latest-generation global climate models considering a range of future emission scenarios and time horizons. –Location information: exposure and vulnerability.	Scope (physical and financial)
Physical risk and resilience assessment	–Identify: determine location-specific physical climate risks (threats and opportunities) considering present-day and short, medium and long- term time horizons and multiple emission scenarios. –Evaluate: assess identified risks in terms of their potential consequence (financial and non-financial) and likelihood. –Prioritise: prioritise risks based on materiality.
			Top-down assessment Group-wide	Bottom-up assessment Asset level
Resilience planning and adaptation	–Options: explore and identify the most appropriate resilience and adaptation measures to mitigate risk. –Consider: cost-benefit, principles of adaptive management, modularity and long-term sustainability. –Prioritise: critical and high-impact measures for implementation. –Decide and implement: decide and implement adaptation measures.
Monitoring and evaluation	–Accountability: clearly define roles and responsibilities. –Metrics: evaluate performance against established metrics and indicators to assess success and impact. –Review: revisit this approach regularly, or if there is a material change to the economic, social, environmental, or physical context of the subject/risk.	Operations Environment People Community Supply chain

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 49

Weather/climate analytics and insights 

We use the latest-generation weather and climate data products to gain quantitative insights into short, medium and long-term weather and climate

risks. The strategic implementation of these advanced tools help manage physical climate risks proactively across our geographically diverse sites

and supply chains. Across the Group, we utilise the following tools, the combination of which cater for time horizons and weather and climate risks

from hours in the future (operational resilience and short-term decision-making) to decades (long-term strategic and scenario planning).

Product	Time horizon	Variables	Detail and use
Weather forecasts	Short term: hours to days	Atmospheric conditions: temperature, precipitation, wind	Weather and severe weather forecasts used at site-level to inform short-term operational planning and trigger emergency response planning.
Severe weather forecasts	Short term: hours to days	Extreme events: storms, tropical cyclones, flash floods, hail, lightning
Climate outlooks	Short term: weeks to months	Atmospheric conditions (rainfall outlooks) and extreme events (tropical cyclone outlooks)	Climate outlooks inform operational mine planning and bolster operational resilience and rainy season preparations across our portfolio.
Catastrophe modelling	Short, medium and long term (years to decades)	Extreme events: tropical cyclone, flood	Modelling to estimate potential financial losses and damages that can result from extreme climate events like tropical cyclones and floods.
Climate change projections	Long term: decades	Atmospheric, climatic, oceanic and extreme events	Long-term projections of how acute and chronic hazards may change in the future. Projections are used to inform our asset-level and Global Industry Standard on Tailings Management (GISTM) physical risk and resilience assessments, operations, closure planning and execution, exploration, projects, mine water management, and Group finance and insurance.

Climate change projections are available

for every site in our portfolio (including

non-managed assets). Downscaled climate

change projections are available for over 60

climate change variables and future emission

scenarios from the IPCC Coupled Model

Intercomparison Project 5 and 6 (CMIP5 and

CMIP6). We have completed flood risk

modelling for 100% of our managed and non-

managed assets considering three future

emission scenarios and time horizons

spanning present-day, medium and

long-term time horizons. 

Physical risk and resilience

assessment

Our approach to quantifying and assessing

physical risk (threats) and resilience is both

targeted and systematic, spanning from

individual assets (bottom-up) to the Group

level (top-down). We first identify climate risks

and opportunities across varying and

applicable time horizons (present day/short

term, medium and long term) and emission

scenarios. Next, we evaluate their potential

financial and non-financial consequences and

likelihood and 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 that host us, and

our supply chain. 

Resilience planning and adaptation

Each site, operating context and location is

unique. Our resilience planning identifies the

most appropriate resilience measures to

manage climate risks and adapt to them.

This can explore multiple options, weighing up

cost-benefit, alongside principles of adaptive

management, modularity and sustainability. An

investment decision is comprehensively

evaluated before funding approval. This

includes prioritising projects and engaging key

stakeholders to seek alignment on the

investment and its implementation. 

Monitoring and evaluation 

Risks are actively and regularly monitored with

clearly defined roles and responsibilities.

Adaptation is a continuous and evolving

process and 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. Where a material change to the

economic, social, environmental or physical

context of the risk has been identified, the

assessment process is revisited. 

Physical climate risks and impacts

Combining climate insights with a top-down

assessment, we have identified eight

Group-level material physical climate risks.

Identifying and evaluating our most material

challenges and significant risks empowers us

to implement targeted controls, adaptation

strategies and risk management plans, to

safeguard our business and ensure a safe,

profitable and productive operation in a rapidly

changing climate.

While the emergence of climate-related risks

varies in response to the evolving nature

of the underlying hazards, many of these risks

could manifest today. For example,

an extreme heat event could impact the

health, safety and productivity of our workforce

in the short term. However, increases in future

temperature means that risks may become

more material. The summary table on page 51

takes into account both the short-term risk that

could emerge during current operations as

well as the long-term risk associated with

climate change.

Environment continued

50 Annual Report on Form 20-F 2023 | riotinto.com

Key l Short term (0-2 years) l Medium term (2-10 years) l Long term (10+ years)

Risk, impact and time horizon	Environmental triggers	Risk management
Tailings storage facility (TSF) containment breach/failure due to geotechnical instability or significant erosion event	Extreme rainfall, flooding	Our facilities comply with local laws and regulations and have risk management protocols in place, including a Group safety standard for tailings and water storage facilities. We regularly update this standard and undergo internal and external assurance checks. Our operational TSFs have, or are developing, tailings response plans and follow strict business resilience and communications protocols. In accordance with the relevant climate change requirements from the GISTM, all TSFs will conduct a climate change resilience assessment by August 2025.
Water shortages, supply and availability impacting operations and production, water treatment and environmental compliance, dust control and community relations	Rainfall, temperature	We use a water risk framework to identify, assess and manage water risks across our portfolio of managed operations. For more information on the water risk framework, see page 59. The framework covers four themes, one of which relates to water supply (water resource). The supply theme requires us to consider whether sufficient water is available to supply both our operational demands and the demands of other stakeholders within the broader catchment, under the range of conditions that are likely to occur over the asset's life. We apply rigorous standards and processes to ensure effective controls are in place at all sites. This includes our Group water quality protection and water management standard, and a standardised Group water management control library which describes all controls identified to manage our water risks. Asset-specific climate change risk and resilience assessments further enable continued improvement of water risk management over time.
Damage to critical coastal infrastructure (shipping berths, ship loaders, stackers/reclaimers, conveyors) resulting in operational and supply chain disruption	Tropical cyclone/ storm, wind, storm surge	Our coastal infrastructure is designed to withstand the wind loading and other impacts associated with extreme events, including severe tropical cyclones. Established business resilience management plans offer frameworks for response, continuity, and recovery in the event of a natural catastrophe scenario, aiming to minimise damage and resume operations swiftly. Our engineering risk assessment program, including asset-level critical risk assessments, considers natural catastrophe modelling and associated risks, if appropriate.
Damage and outages of critical electrical (motors, generators, cooling systems) and power (substations, transformers, transmission lines) infrastructure	Tropical cyclone/ storm, extreme rainfall, flooding, extreme temperatures, lightning	Electrical and power infrastructure is designed in accordance with local engineering and design standards and internal electrical safety standards and is considered in our asset- specific climate change risk and resilience assessments. Flood risk modelling (surface water, riverine and coastal inundation) incorporating future climate change projections has been completed across our portfolio of managed and non-managed operations.
Damage to critical mining and production infrastructure (eg fixed plant, conveyors) resulting in operational disruption	Tropical cyclone/ storm, extreme rainfall and/or flooding	Critical mining and production infrastructure is designed in accordance with local engineering and design standards and are considered in our asset-specific climate change risk and resilience assessments. Assets located in tropical cyclone-affected regions have appropriate controls to minimise damage and operational downtime. Flood risk modelling (surface water, riverine and coastal inundation) incorporating future climate change projections has been completed across our portfolio of managed and non- managed operations.
Health and safety and productivity of workforce	Extreme heat	Controls are in place to manage the risk of extreme heat for our workforce, including adequate acclimatisation prior to commencing work. Those undertaking high-risk heat tasks are monitored daily for signs or symptoms of heat illness/stress. Operator checklists ensure adequate hydration and work area management. Provision is made for cool rest areas with access to cool drinking water. Our workforce is able to self-pace their workload ensuring regular work/rest breaks.
Disruption to transport routes (maritime, rail, air and road access) and supply chain (supplies and critical spares and access to direct customers)	Tropical cyclone/ storm, extreme heat, extreme rainfall, flooding	We are working to better understand the interdependencies across our entire operation. In 2023, we operationalised analytics that provides real-time natural hazard impacts for over 50% of our tier 1-3 goods suppliers. Being alerted of potential supply disruption in real- time allows our teams to make informed decisions to reduce supply chain disruption. This work aims to identify critical components of our product group supply chains and manage the potential adverse impacts from physical climate risk.
Acute and chronic climate change impacting closure objectives	Tropical cyclones/ storms, temperature, rainfall, flooding, sea level rise	The physical impacts of climate change are considered when planning and executing closure. Latest-generation climate change projections specific to the site are used to inform appropriate landform design, water management and vegetation selection. This is to support modelling as per local regulatory requirements and internal closure standards. Ongoing and regular monitoring and maintenance of the site is essential to ensure the effectiveness of closure measures, including monitoring water quality, soil erosion, vegetation growth and any potential contamination or instability issues.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 51

Climate-related metrics and targets

A)Disclose the metrics used by the

organisation to assess climate-

related risks and opportunities in

line with its strategy and risk

management process.

B)Disclose Scope 1, Scope 2, and,

if appropriate, Scope 3 GHG

emissions, and the related risks.

C)Describe the targets used by the

organisation to manage climate-

related risks and opportunities and

performance against targets.

We have identified various metrics to monitor

our climate-related risks, opportunities and

targets. Our decarbonisation strategy is

monitored by tracking progress on our

abatement projects and reporting Scope 1 and

2 emissions. On Scope 3 emissions, we track

our customer engagement on decarbonisation,

progress on individual projects and

partnerships as well as our emissions.

We provide metrics for transition-related

opportunities (the increased demand for

transition materials) on page 56. Physical risks

metrics include the financial exposure metric

and annualised damage metric on pages

57-58.

We have also disclosed other ESG-related KPIs,

metrics and targets that integrate with our

objective of achieving impeccable ESG

credentials within the respective Environmental,

Social, and Governance performance sections of

this Form 20-F. A summary of these metrics is

found on page 43 with other Group KPIs

highlighted on pages 20-22.

Scope 1 and 2: Operational

emissions targets aligned with

1.5°C

In 2023, we updated our Scope 2 emissions

reporting methodology to align with improved

and evolving global GHG emissions reporting

standards. Our primary metric for Group

emissions is a market-based methodology and

we have restated our baseline and current

emissions. Further detail on this change in

reporting and the implications for our

emissions baseline is available in our 2023

Addendum - Scope 1, 2 and 3 Emissions

Methodology report.

While there is no universal standard for

determining the alignment of targets with the

Paris Agreement goals, we conclude that our

Scope 1 and 2 targets for 2030 are aligned

with efforts to limit warming to 1.5°C. In 2021,

KPMG provided limited assurance over the

alignment of our Scope 1 and 2 targets with

efforts to limit warming to 1.5°C. They also

provided assurance of the roadmap to

delivering those targets (as set out in our 2021

Climate Change Report). KPMG provide

assurance over our 2023 reporting of progress

on our Climate Action Plan (CAP)

commitments as well as on our 2023 Scope 1,

2 and 3 emissions.

Current year progress and update

on 2025 target

Our Scope 1 and 2 emissions were 32.6Mt CO2e

in 2023. This is 6% below our 2018 baseline of

34.5Mt CO2e and slightly below our adjusted

2022 emissions of 32.7Mt CO2e (adjusted for

acquisitions). Abatement delivered by our

projects in 2023 exceeded emissions growth

from higher production giving a slight reduction in

emissions on a like for like basis.

Our 2023 emissions were slightly higher than

our actual 2022 emissions total of 32.3Mt

CO2e due to the recent acquisitions of

additional equity in OT and MRN.

Against a backdrop of rising production, the

emissions reductions achieved since 2018 are

mostly the result of decarbonising power.

These include PPAs at Escondida and the

purchase of renewable energy certificates

(RECs) at our Kennecott and Oyu Tolgoi

copper operations.

The scale of our commitments on abatement

projects has increased rapidly since we reset

our Scope 1 and 2 emissions targets in

October 2021. In 2023, we have made project

commitments which deliver abatement of

around 2Mt CO2e per year, mostly in

renewable energy contracts and certificates,

and biofuels deployment.

By 2025 we expect to have made financial

commitments to abatement projects that will

achieve more than 15% of Group emissions.

However, our actual emissions abatement will

lag this.

These delays are the result of a range

of factors including engineering and

construction timelines, pace of development

related to new technology and energy systems

in the locations we operate, and the need to

carefully integrate our ambitions with the

needs of our local communities and

stakeholder groups. We also need additional

abatement to address underlying emissions

growth as our production plans evolve.

Progress to our 2030 target

Between now and 2030, the most significant

opportunities to reduce our Scope 1 and 2

emissions are to switch the electricity we

generate or purchase to renewables, and to

address process heat emissions from our

alumina refineries.

To reach our 2030 goals, our single largest

lever - accounting for around one-quarter of

our emissions - is to develop a competitive

renewable energy solution for the Boyne and

Tomago aluminium smelters in our Pacific

Aluminium Operations (PacOps). In December

2023, we signed a PPA to buy all the electricity,

and associated green products to be generated

in the future, from the 1.1GW Upper Calliope

Solar Farm project, which if combined with more

renewable power and suitable firming,

transmission and industrial policy, could provide

part of a solution to repower Rio Tinto’s three

Gladstone production assets (Boyne aluminium

smelter, Yarwun alumina refinery and the

Queensland Alumina Limited (QAL) alumina

refinery). Once approved and developed, this

solar project has the potential to reduce operating

carbon emissions by 1.8Mt per year.

We must also execute other key projects in our

pipeline related to renewable electricity contracts

and alumina processing heat reductions to meet

our 2030 target.

We expect to make financial commitments before

the end of the decade that will result in structural

abatement of our portfolio beyond 2030. This

demonstrates our continued commitment

towards our net zero goal.

In 2023, we built a 5MW solar plant pilot

project at Kennecott Copper. We approved,

subject to regulatory approvals, a 12.4MW

solar system and a 2.1MWh battery storage

system via long-term PPAs for Amrun. There

have been continued discussions on the

proposed coastal Pilbara solar photovoltaic

with stakeholders and we progressed studies

for further solar and wind developments.

In alumina processing, we have developed a

decarbonisation energy strategy for Yarwun and

QAL refineries. We have progressed our double

digestion pre-feasibility study at QAL which

includes the construction and commissioning of a

pilot plant to provide technical inputs to support

the study. Electric boiler feasibility studies have

progressed at Vaudreuil and we have also

approved the Yarwun Hydrogen Calcination Pilot

Demonstration Program. . 

Voltalia began Phase 1 construction of a

130MW solar farm for Richards Bay Minerals

(via PPA) and construction has also

commenced on the 16MW Phase 2 Wind

project at QIT Madagascar Minerals.

In the Pilbara, we remain committed to

building 1GW of renewable energy capacity.

However, due to the extended timeline for

deployment of battery electric haulage

solutions, we now estimate that 600MW to

700MW capacity is required by 2030.

We have completed the commercial and

technical due diligence of the submissions for

supply of renewable electricity to Gladstone

aluminium assets. In 2024, we aim to progress

renewable energy supply for Boyne Smelter,

launch a Request for Proposal for renewable

energy projects for Tomago, and seek renewable

energy and storage capacity for Tranche 1 of

electrification at the Gladstone alumina refineries.

While prioritising emissions reductions at our

operations, we are also investing in nature-

based solutions (NbS) that can bring benefits

to people, nature and climate. We may retire

high quality carbon credits generated by these

projects towards our 2030 targets. This will

complement our abatement project portfolio –

which aims to reduce operational emissions by

50% by 2030 – and support our compliance

with carbon pricing regulation such as the

Safeguard Mechanism in Australia.

Our emissions reporting will continue to

transparently distinguish between our

underlying operational emissions, the volume

and type of carbon credits retired and net

Group emissions.

In 2023, our net emissions total does not include

86,000 ACCUs retired for compliance with the

Safeguard Mechanism for the period 2021-22.

We expect to include ACCUs in our net

emissions figure from 2024 onwards.

Environment continued

52 Annual Report on Form 20-F 2023 | riotinto.com

Pathway to our 2030 Scope 1 and 2 emissions target

(Mt CO2e, equity basis)1

Note: small differences in chart attributable to rounding.

1.Restated emissions due to Scope 2 methodology changes. Data represent gross Scope 1 and 2 emissions and direct abatement projects.

2.“Other required” will flex over time based on abatement project delivery, growth, closures and asset changes.

Scope 3: Partnering to reduce the

carbon footprint of our value

chains

In 2023, our Scope 3 emissions were 578.1Mt

CO2e (equity basis), approximately 18 times

higher than our Scope 1 and 2 emissions. Most

of these emissions (94%) stem from customer

processing of our products, particularly iron ore

(69%) and bauxite and alumina (22%).

Scope 3 processing emissions related

to our iron ore rose from 386.6Mt CO2e in

2022 to 399.9Mt CO2e in 2023 primarily

due to an increase in production.

Downstream processing emissions from

bauxite and alumina decreased from 147.3Mt

CO2e in 2022 to 129.8Mt CO2e mostly as a

result of reduced emission intensities related

to aluminium smelting in China.

We have seen a significant increase in the

number of our customers setting public targets

for their Scope 1 and 2 emissions (our Scope

3). About 53% of our total iron ore sales are

now to steel producers with existing public

targets to reach net zero by 2050, up from

about 50% in 2022 and 28% in 2021.

Meanwhile, nearly 40% of our bauxite sales

are to customers with net zero emissions

targets, though only 13% of this is to

companies aiming for net zero by 2050.

As these numbers rise, we expect to enhance

our ability to partner through the value chain to

achieve our common sustainability objectives.

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 that

approaches net zero by around 2060.

We are committed to partner with our

customers and suppliers to find better ways to

help them achieve their targets a decade

earlier – reaching net zero by 2050.

To do this, we are investing in the development of

breakthrough technologies aiming to help

decarbonise our value chains and upgrading our

ores to be suitable for these.

As the world’s largest iron ore producer, we have a

key role to play in decarbonising the steel industry.

We are currently working with over 40 partners

across 50 projects in 10 countries. Supported by

research on our ore bodies, our objective is to

unlock the most sustainable and economic

pathways for our iron ores.

To reduce our Scope 3 emissions, we have defined

4+2 focus areas to address our Scope 3 emissions.

These include our four most significant categories

considering the magnitude of emissions and our

ability to drive meaningful incremental impact –

steel, alumina refining, shipping and procurement

decarbonisation. In parallel, we are also working on

two transversal programs aimed at leveraging our

size and scale to support collective industry and

policy action and enhancing emissions transparency

across our value chains.

Steel value chain: We are actively working

with our customers to help reduce their carbon

emissions from the current blast furnace

process. We have progressed the design plan

of the Baowu Meishan microwave lump drying

pilot plant and are also testing increased lump

usage in the blast furnace with POSCO and

Zenith. An economically viable carbon capture

technology with Shougang that could capture

blast furnace gas is also currently in

development.

As part of our focus on emerging pathways,

we aim to utilise our high-grade iron ores to

accelerate the early proliferation of low-carbon

technologies. During the year, we signed a multi-

year agreement to supply high grade direct

reduction iron ore pellets from IOC operations to

H2 Green Steel’s integrated steel plant. We are

also evaluating a portfolio of options in energy-

advantaged regions (Canada, US, Europe,

Australia, and the Middle East) to accelerate the

build-out of natural gas and, eventually, hydrogen

shaft furnace solutions.

Due to the scarce availability of high-grade ore,

the main focus of our research and development

is on a range of new technologies that unlock

competitive low-carbon pathways for low and

medium-grade iron ores.

We are working to solve the key constraints to

this, notably removing impurities found in low-

mid grade iron ores prior to/during iron and

steel making.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 53

We are currently evaluating the extent to which

impurities can be economically removed from our

Pilbara blend ores prior to processing and have

completed mineral resource and inventory

reviews to understand how much of our

future reserves are suitable for upgrading. Our

detailed feasibility study related to BioIron™ has

been completed and we have progressed

research on the pelletisation of Pilbara ores.

In 2023, we spent $28 million on steel

decarbonisation initiatives, and have set

specific action-oriented targets for

steel decarbonisation.

We estimate that we will spend $100 million

on steel decarbonisation in 2024.

Approximately one third of this will be capital

expenditure on BioIron™ (subject to approvals

and technical feasibility), with the remainder

being operational expenditure on our other

partnerships.

Aluminium value chain: The majority of our

product is processed in China using coal-fired

refining and smelting processes, where we

have little influence over the power source for

these electricity grids. Because of this, our

short-to-medium-term focus is to help our

customers improve the alumina refining

process to increase energy efficiency and

optimise the use of our bauxite. This is mostly

via sweetening and improved digestion and

renewable energy for heat source via

hydrogen calcination and electric boilers in the

longer term.

In 2023 we worked with three key customers

representing more than 47% of our bauxite sales,

to shortlist potential areas for future collaboration

and we are now developing action plans to

collaborate in priority ESG areas.

Procurement: 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. In 2023 we completed a

study to understand the sources of our

procurement-related emissions. This

enhanced our understanding of the sources

and nature of our procurement-related

emissions, including our highest emitting

categories and suppliers, and potential

abatement solutions.

Shipping: Our Scope 3 emissions from

shipping and logistics are 9.2Mt CO2e. We

have achieved a 37% emissions intensity

reduction relative to 2008 by incorporating

larger, more efficient vessels such as

Newcastlemaxes into our fleet, implementing

various design improvements and technical

modifications, and by ensuring the

implementation of speed and route

optimisation measures.

We continue to explore opportunities for

biofuels and liquid natural gas (LNG) and are

focused on bringing dual fuel, net zero vessels

into our portfolio by 2030.

Although the economics of implementing

these fuels remain challenging, a 12-month

biofuel trial has been completed on our owned

vessels which affirmed the fuel’s technical

viability for existing vessels.

Scope 3 near-term targets

By holding ourselves accountable on real and

measurable commitments in the near term, we

can help to make sure technologies are

developed early enough to accelerate the

transition in the long term.

Therefore, this year we have set specific near-

term targets for steel, alumina refining,

shipping and procurement decarbonisation.

To accelerate steel decarbonisation, we have

set targets to support our customers to reduce

blast furnace emissions by 20-30% by 2035,

halve our Scope 3 emissions from IOC by

20351 relative to 2022 levels, commission the

BioIron™ continuous pilot plant (CPP)1, shaft

furnace (DRI) and Electric Smelting Furnace

pilot plant by 2026 and finalise the Pilbara

beneficiation pilot plant study by 2026.

In alumina decarbonisation, we are committing to

partnerships with the goal of  improving energy

efficiency, specifically via implementing and

validating digestion improvement technology and

developing approaches to control or remove

organic compounds from the refining process.

We are also committing to developing

technologies that reduce moisture in our bauxite.

In relation to shipping emissions, we are

aiming to reach net zero by 2050, have 10% of

our chartered fleet using net zero fuel by 2030

(as per our First Movers Coalition pledge),

achieve a 40% emissions intensity reduction

by 2025 with a 50% reduction by 2030, and

improve emissions reporting accuracy using

actual voyage data in 2024.

To help decarbonise our procurement, starting

in 2024, we will engage with our top 50

suppliers on decarbonisation and incorporate

it as a key criterion for all new sourcing in

high-emission categories.

1.Subject to funding approval and technical feasibility.

2023 Scope 3 emissions by category and source (equity basis)

578.1Mt CO2e (2022: 583.9Mt CO2e)

Environment continued

54 Annual Report on Form 20-F 2023 | riotinto.com

Scope 1 and 2 greenhouse gas emissions – equity basis (Rio Tinto share1). Performance against target

Equity greenhouse gas emissions (Mt CO2e)	2023	2022	2018
Baseline Scope 1 and 2 emissions	32.6	32.7
Carbon offsets retired	0	0.0
Baseline net Scope 1 and 2 emissions2	32.6	32.7
2018 emissions target baseline (adjusted for acquisitions and divestments)			34.5

Our 2030 greenhouse gas emissions targets are to reduce our absolute Scope 1 and 2 emissions by 15% by 2025 and 50% by 2030 compared with our 2018 equity baseline. Please see page 150

of this report and our 2023 Addendum - Scope 1, 2 and 3 Emissions Calculation Methodology report for further detail on our emissions reporting methodology.

Changes to our 2018 baseline include: Scope 2 update to market-based methodology, the additional equity share of the Oyu Tolgoi mine that was purchased in mid-December 2022, and the

additional equity share of MRN purchased in 2023 so a like-for-like comparison can be done on progress. We have also adjusted our 2022 emissions total to compare our actual progress on

abatement in 2023 relative to other changes at our operations. 

The baseline value is based on the current equity in each asset, including zero equity in divested assets.This differs from the "Scope 1, 2 and 3 greenhouse gas emissions - equity basis" table which

does not get adjusted with asset or equity changes.

1. Rio Tinto share (equity basis) represents emissions from our benefit or economic interest in the activities resulting in the emissions.

2. Scope 2 emissions in the Baseline are calculated using the market- based method.

Scope 1, 2 and 3 greenhouse gas emissions – equity basis

Equity greenhouse gas emissions (Mt CO2e)	2023	2022	2021	2020	2019
Scope 1 emissions	23.3	22.7	22.9	23	23.1
Scope 2: Market-based emissions1	9.3	9.6	10.1	10.4	9.9
Total Scope 1 and 2 emissions	32.6	32.3	33	33.4	33
Carbon offsets retired2	0	0	0	0	0
Total net Scope 1 and 2 emissions (with offsets retired)	32.6	32.3	33	33.4	33
Scope 2: Location-based emissions3	7.8	8.2	8.5	8.6	8.1
Scope 3 emissions	578.1	583.9	558.3	576.2	—
Operational emissions intensity (tCO2e/t Cu-eq)(equity)4	6.8	7	7.2	7	6.8
Direct CO2 emissions from biologically sequested carbon (eg CO2 from burning biofuels/biomass)5	0.03	0	0	0	0

Queensland Alumina Limited (QAL) is 80% owned by Rio Tinto and 20% owned by Rusal. However, as a result of QAL's activation of a step-in process following the Australian Government’s

sanction measures, Rio Tinto is currently entitled to utilise 100% of the capacity at QAL, but paying 100% of the costs for as long as that step-in continues. Our 2023 equity emissions and our 2018

baseline include QAL emissions on the basis of Rio Tinto’s 80% ownership.  In 2023, the additional emissions associated with the step-in were 0.8Mt. Rusal has commenced proceedings challenging

the validity of the step-in and the sanctions regime may change over time, such that the duration of the step-in remains uncertain. Historical Scope 1 and 2 emissions have been restated to reflect

improvements in data quality.

1. Scope 2: Market-based emissions reported as zero include Escondida, Resolution Copper, Weipa and Kennecott Copper with surrendered Renewable Energy Certificates (RECs) and Oyu Tolgoi

I-RECs from Inner Mongolia and nearby provinces. QMM has a wind and solar contract with energy attributes.

2. In 2023, we did not reduce our reported net emissions by using any surrendered carbon units as eligible offsets retired. Our net emissions total does not include 86,000 ACCUs retired for

compliance with the Safeguard Mechanism for the period 2021-22. We expect to include ACCUs in our net emissions figure from 2024 onwards.

3. Scope 1 and 2 equity emissions total – Location-based: 31.1Mt CO2e.

4. Historical information for copper equivalent intensity has been restated in line with the 2023 review of commodity pricing to allow comparability over time.

5. 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.

2023 equity greenhouse gas emissions by location (Mt CO2e)	Scope 1 Emissions (Mt CO2e)	Scope 2 Emissions1 (Mt CO2e)	Total Emissions (Mt CO2e)
Australia	13.0	6.3	19.2
Canada	6.4	0.0	6.4
Africa	0.5	1.3	1.8
US	0.9	0.0	0.9
Europe	0.3	1.7	2.0
South America	0.5	0.0	0.5
Mongolia	0.2	0.0	0.2
New Zealand	0.5	0.0	0.5
Other	0.9	0.1	0.9
Total	23.3	9.3	32.6

1. Scope 2 emissions in this table are calculated using the market-based method.

Note: The sum of the categories may be slightly different to the Rio Tinto total due to rounding.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 55

Transition materials metrics

The following table provides metrics related to the first two pillars of our business strategy (grow in materials essential for the energy transition and

accelerate the decarbonisation of our assets).

These metrics are production, revenue, capital expenditure, operating assets and emissions associated with each of our products. These products

are classified as key transition materials (KTM) and other transition materials (OTM) aligning with the CA100+ Net Zero Standard for Diversified

Mining Companies. The table also includes iron ore and gold as transition neutral materials (TNM). We divested the last of our coal assets in 2018.

Commodity	Classification	Year ended 31 December	Production1	Revenue2 US$m	Capital expenditure3 $m	Operating assets4 $m	Emissions Mt CO2e5,6	2024 Guidance Rio Tinto production share, unless otherwise stated
Lithium	KTM	2023	–	–	27	834	–	–
('000 tonnes)		2022	–	–	15	835	–	–
Copper7 (Mined)	KTM	2023	562	2023: 6,625 2022: 6,618	2023: 2.474 2022: 1,942	2023: 21.046 2022: 18,463	2023: 1.1 2022: 1.7	Mined copper: 660 to 720kt Refined copper: 230 to 260kt
('000 tonnes)		2022	521
Copper7 (Refined)	KTM	2023	175
('000 tonnes)		2022	209
Silver (Mined)	OTM	2023	3,811
('000 ounces)		2022	3,940
Silver (Refined)	OTM	2023	1,407
('000 ounces)		2022	1,950
Molybdenum	OTM	2023	2
('000 tonnes)		2022	3
Gold (Mined)	TNM	2023	282
('000 ounces)		2022	235
Gold (Refined)	TNM	2023	74
('000 ounces)		2022	114
Aluminium8	OTM	2023	3,272	9,272	906	11,919	17.2	3.2 to 3.4Mt
('000 tonnes)		2022	3,009	10,738	925	10,131	16.5
Alumina8	OTM	2023	7,537	1,288	325	1,315	5.9	7.6 to 7.9Mt
('000 tonnes)		2022	7,544	1,636	356	2,400	5.7
Bauxite8	OTM	2023	54,619	1,648	226	2,649	0.9	53 to 56Mt
('000 tonnes)		2022	54,618	1,607	204	2,458	0.9
Minerals9	OTM/TNM	2023	See footnote 10	3,240	380	4,102	2.8	Titanium dioxide slag: 0.9 to 1.1Mt
(‘000 tonnes/carats)		2022		3,485	332	3,955	3.0
Iron Ore	TNM	2023	290,171	33,772	3,193	20,581	3.7	IOC11 iron ore pellets and concentrate: 9.8 to 11.5Mt Pilbara iron ore (shipments, 100% basis): 323 to 338Mt
('000 tonnes)		2022	283,247	32,801	3,273	19,525	3.7
Metallurgical Coal	Not applicable	2023	–	–	–	–	–	–
('000 tonnes)		2022	–	–	–	–	–	–
Thermal Coal	Not applicable	2023	–	–	–	–	–	–
('000 tonnes)		2022	–	–	–	–	–	–

Further notes on production and capacity

Mined copper: On track for 1Mt copper production within five years.

Recycled aluminium (Matalco): System capacity of 900kt; production of 582kt in 2023.

Lithium carbonate (Rincon 3000): System capacity of 3,000 tonnes by the end of 2024.

Iron ore (Pilbara System): System capacity of 345-360Mt mid-term.

Iron ore dual fines product of blast furnace and direct reduction fines (Simandou): 60Mtpa production target (Rio Tinto share of 27Mt). 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 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.

1.Production figures are measured according to Rio Tinto's ownership % share of each site. For further details on the share %, see pages 297 and 298 of this Form 20-F where these have been

highlighted.

2.Revenue reflects third party sales by product on a consolidated basis inclusive of our share of equity accounted units.

3.Capital expenditure is the net cash outflow on purchases less sales of property, plant and equipment, capitalised evaluation costs and other intangible assets, inclusive of our share of equity

accounted units and reported by product.

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.

5.Scope 1, 2, and 3 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 2023 Sustainability Fact Book at riotinto.com/sustainabilityreporting.

6.The emissions in this table are Scope 1 and 2 GHG emissions 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 and corporate emissions.

7.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 who is

the majority partner.

8.For a list of assets certified under the Aluminium Stewardship Initiative, see our 2023 Sustainability Fact Book.

9.Minerals comprise titanium dioxide slag (KTM), borates (TNM), salt (TNM) and diamonds (TNM).

10.2023 Mineral production is as follows:

–Titanium dioxide slag (‘000 tonnes): 1,111 (2022: 1,200)

–Borates (‘000 tonnes): 495 (2022: 532)

–Salt (‘000 tonnes): 5,973 (2022: 5,757)

–Diamonds (‘000 carats): 3,340 (2022: 4,651)

11.Iron Ore Company of Canada continues to be reported at Rio Tinto share.

Environment continued

56 Annual Report on Form 20-F 2023 | riotinto.com

Physical climate risk and resilience

Modelling financial exposure to

physical climate risk 

Throughout 2023, we advanced our climate

physical risk modelling, in collaboration with our

climate risk consultants Marsh, and used

modelling from XDI. Our latest analysis estimates

the expected financial losses for individual

assets, considering various time horizons and

emission scenarios caused by discrete physical

climate hazards. This analysis shows the

potential financial losses associated with asset

damage, but excludes the losses associated with

business interruption or productivity loss. The

latter, while considered in the formulation of the

analysis, was excluded due to the complexity of

our value chain and the increased subjectivity of

loss attribution. This aspect may be considered in

future years and requires further analysis to fully

assess financial consequences.

Understanding and quantifying our financial

exposure to these physical climate risks is

important for prioritising our adaptation and

investment decisions, safeguarding our

assets, maintaining operational resilience,

ensuring long-term profitability, and aligning

with the evolving expectations of investors,

regulators and stakeholders. 

This modelling process and methodology

considers the following: 

1.Asset portfolio: encompasses a significant

breadth of assets, including mining assets

and critical infrastructure components,

which are integral to our operations. Our

modelling has considered over 18,000

individual points, each with unique latitude

and longitude coordinates, representing

assets across 76 sites in 18 countries.

Assets are geolocated, facilitating the

assessment of climate-related risks and

hazards to their specific geographic

location. Each point is assigned one of 28

asset archetypes, representing our diverse

asset base. These archetypes best define

the engineering characteristics and

specifics of that point and determine the

vulnerability to damage by different climate

hazards. Archetypes do not capture unique

design and engineering attributes of each

asset. 

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.

2.Climate scenarios, time horizons and

hazards: modelling considers two future

emissions scenarios - Representative

Concentration Pathways (RCPs) - from

the IPCC, including RCP4.5 (intermediate

greenhouse gas emission scenario)

and RCP8.5 (high greenhouse gas

emission scenario).

Emission scenario	Description and outcome
Intermediate emissions scenario IPCC Representative Concentration Pathway 4.5 (RCP4.5)	Emissions peak around 2040, then decline. Relative to the 1986-2005 period, global mean surface temperature changes are likely to be 1.1°C-2.6°C by 2100.
High emissions scenario IPCC Representative Concentration Pathway 8.5 (RCP8.5)	Emissions continue to rise throughout the 21st century 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 by 2100.

Source: The Intergovernmental Panel on Climate Change 

Our physical climate risk modelling considers

present day (short term) and future risks.

Multiple future time horizons are modelled,

including 2030 (medium term), 2040 and 2050

(long term). Eight 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, forest fire

and freeze-thaw. 

3.Annualised damage (AD): the output of

the modelling is calculated for each asset

under various climate scenarios, time

horizons and hazards. AD, expressed as a

percentage, represents the expected

average annual damage to an asset

attributable to climate-related hazards

relative to a fixed value (eg $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. 

Estimates consider a stationary “do nothing”

approach for our operating assets and does

not consider present or future controls,

adaptation/resilience projects that will likely

materially impact our AD cost.

Annualised damage risk scores 

At the Group level, present day AD losses fall

within the initial range of the medium AD risk

category (0.2-1%). Considering projected

future emission scenarios by 2050, increases

in AD are expected. This places the Group’s

AD in the intermediate range of the medium

AD risk category, potentially exceeding a two-

fold rise from present values. 

Currently, across nine core climate geographies

where we operate, the risk of AD is low in three

regions, medium in five and high in two. Notably,

sites located in Asia, the Middle East and Guinea

are the primary contributors to the highest risk

classification. In both the intermediate and high

emissions scenarios, by 2050, eastern Australia

and New Zealand are also expected to be

classified as high risk with up to a four-fold

increase in AD. This is principally due to the

potential effects of coastal inundation, surface

water flooding

and cyclonic winds. Other notable increases

in risk are in Europe and the Middle East

(an approximate 60% increase). The risk trend in

Asia is steady through time.

In assessing the risk of various hazards under

different emissions scenarios projected for

2050, there is a notable shift in the risk profile

for various perils across our operating sites.

The number of sites at risk from coastal

inundation, riverine flood and surface water

flood increase under both future emission

scenarios. Of all hazards, riverine flood sees

the largest increase by 2050 under a high

emissions scenario. The number of operating

sites at risk from cyclonic wind, extreme wind,

forest fire, freeze-thaw and soil subsidence

are not expected to materially change with

future emissions scenarios.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 57

Annualised damage risk | Group and regional

		Intermediate emissions scenario			High emissions scenario
	Present	2030	2040	2050	2030	2040	2050
Rio Tinto Group
Africa
Asia
Australia East and New Zealand
Australia West
Canada East
Canada West
Europe and Middle East
South America
US

Low risk (<0.2%) Medium risk (0.2-1%) High risk (>1%)

Considerations and limitations

In our 2023 climate physical risk modelling

analysis, we acknowledge several limitations and

uncertainties inherent in the methodology and the

long-term nature of the assessment.

Climate change modelling is subject to inherent

uncertainties stemming from the dynamic nature

of the Earth’s climate system and from the

unpredictability of future GHG emissions. Climate

change scenarios should be regarded as

representations of a plausible future (what may

happen in the future) and not as forecasts or

predictions (what will happen in the future).

These factors contribute to a range of possible

outcomes. However, despite these challenges,

such models are useful for assessing potential

risks and informing strategic decision-making for

climate-resilient infrastructure and adaptation.

Furthermore, the accuracy of our analysis is

contingent upon the quality and completeness

of asset data and asset operating status. We

have assumed there is no change in our

operating assets and their value, not

accounting for potential changes in types of

operations, locations or design standards over

time. Each asset was assigned an appropriate

archetype, which best defines its engineering

characteristics and subsequent vulnerability to

specific hazards. This does not fully capture

the unique design and engineering attributes

of each asset, which may impact the resultant

risk profile. 

This analysis represents our initial perspective

and is iterative, evolving with new scientific

insights, climate projections, and

advancements in risk modelling. We plan to

regularly update this analysis to reflect our

dynamic asset base.

The outcomes of this work will inform our

areas of focus and refine our physical

resilience program for 2024. 

2023 progress on physical risk

and resilience 

Throughout 2023, we made progress on

quantifying, managing and adapting to our

physical climate risks. 

–Advancing our bottom-up physical

resilience assessments: progress in the

Pilbara centered on further validation and

quantification of physical climate-related

risks from the 2022 climate change

assessment and progress embedding

physical resilience into business-as-usual

management actions. We also conducted

asset-level resilience assessments across

our Canadian sites, including those in

Saguenay, BC Works and IOC, as well as at

our Simandou Iron Ore Project in Guinea

and at Weipa and Yarwun in Australia. We

have completed flood risk screening for all

of our managed and non-managed assets.

–Quantifying our top-down financial risk

exposure: scenario analysis was

conducted across our global portfolio to

quantify the financial impacts of physical

climate risk. 

–Global Industry Standards on Tailings

Management (GISTM): in accordance with

GISTM guidelines, we initiated a climate

resilience assessment process for our

tailings storage facilities (TSFs). The

approach tests the design basis of each

TSF component considering future climate

change. Initially focused on 14 extreme and

high-risk consequence TSFs, which we

completed in 2023. Assessments for all

remaining facilities will be completed by

August 2025. 

–Technical adaptation and guidance: in

2023, we developed a new internal leading

practice guideline on how to incorporate

climate change into mine water

management planning. This guidance

provides insights on when and how to

model the impacts of climate change to

inform hydrological design. 

–Supply chain: this year, we operationalised

analytics that provide real-time natural hazard

monitoring for 50% of our supply chain (tier 1-3

goods suppliers). Being alerted of potential

supply disruption in real time provides our

teams with the opportunity to make informed

decisions to reduce supply chain disruption.

In 2024, we will progress bottom-up physical

risk and resilience assessments across our

operating sites and across our TSFs, in

accordance with the GISTM. Climate physical

risk modelling completed in 2023 has provided

us with valuable data which will be used to

focus our activities in 2024 and beyond.

For more information on physical risk and resilience see riotinto.com/climaterisk.

Environment continued

58 Annual Report on Form 20-F 2023 | riotinto.com

Environmental stewardship

As environmental stewards, we focus on responsibly managing shared resources to protect the health, safety and livelihoods of local communities. We manage risk to minimise adverse environmental impacts from our operations and to sustain our shared ecosystems, planet and natural resources for future generations. 2023 progress In 2023, we continued to strengthen our approach to environmental risk management by updating and implementing a shared language, developing a standardised set of controls and associated performance requirements and ensuring we are assessing the full breadth of potential environmental impacts in a consistent way across our business. This is evident in our Group environmental risk taxonomy and consequence descriptions for risk and incidents. As a forum member of the Taskforce on Nature-related Financial Disclosures (TNFD), we have undertaken pilots of the prototype risk management and opportunity disclosure framework at our Simandou site in Guinea and at Greater Hope Downs in Australia. The final framework was released in September 2023. Through our membership with  ICMM, we are engaging with our industry peers to develop mining sector-specific guidance for TNFD. We have also refreshed our approach to managing nature-related risk and are developing a pathway to increasing our environment- related disclosures in line with the requirements of TNFD. As part of the Health, Safety, Environment and Security Transformation Program, we continue to improve how we manage our environmental data. Access to trusted and timely environmental data across all Saguenay– Lac-St-Jean sites is supporting decision making, meeting the growing demand for transparency and enabling us to set meaningful targets for continuous improvement in environmental performance. A project is underway to optimise environmental data collection across the business, leveraging existing tools as much as possible. We have also worked to build a more consistent approach to environmental management and embed it across our business processes throughout the lifecycle of our operations. To support our assets in managing their overall health, safety and environmental performance, we continue to evolve our approach. We recently incorporated environmental and health risk ownership and performance management into our safety maturity model (SMM).	Water Water is a shared resource critical to sustaining biodiversity, people and economic prosperity. Increasingly disrupted weather patterns and more extreme weather events due to climate change, and a growing world population, mean efficiently managing water is more important than ever. The way we think about water and manage associated risks reflects the diversity of our operations and geographic locations. A small proportion of our assets operate in water-scarce regions, while others must remove excess water to allow safe mining operations. These are examples of the many potential risks we manage across the lifecycle of our diverse operations.		We share water with the communities and ecosystems surrounding our operations, so we aim to avoid permanent impacts on water resources by carefully managing the quality and quantity of the water we use and return to the environment. This means balancing the needs of our operations with those of the local communities and ecosystems. We do this while considering the impact of climate change, already felt in the level of rainfall and water security at some of our operations. We understand this responsibility extends beyond the life of our operations. To address this complexity, we adopt a catchment-level approach to developing potential solutions and managing our risks and impacts within our operations. We use 2030 water stress as determined by the World Resource Institute (WRI) to identify operational catchments of most concern.
				For more information see www.riotinto.com/water.
	First major mining company to publish site-by-site water usage data In 2023, on World Water Day, we became the first major mining company to release our site-by-site water usage. The interactive online map shows surface water usage across our global network of managed sites in 35 countries. For each site included, the database shows permitted surface water allocation volumes, annual allocation usage and the associated catchment runoff from average annual rainfall estimates. These disclosures allow us to engage closer with our stakeholders and be even more transparent, while we continue to focus on becoming better water and land stewards for future generations.
		For more information see www.riotinto.com/watermanagement.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 59

Group water risk profile (percentage of

managed operations)

To manage our water impacts, we first need to

understand the specific risks at more than 50

operating sites, as well as our overall Group

impacts. To do this, we have developed a water

risk framework that considers:

–water resource

–quality and quantity

–dewatering

–long-term obligations.

We use this framework to identify, assess and

manage water risks. This comprehensive

approach extends beyond our mandatory

reporting obligations and allows us to have

relevant conversations about water risks

internally and with stakeholders in the

communities where we operate. In 2023, we

continued to embed the Group water control

library, a suite of critical controls and their

associated performance requirements to

manage our water risks.

Our Group water risk profile shows the level of

exposure against each of the four risk

categories. Most of our water risks sit in the

low to moderate range. There are some in

very high and high categories for each.

Regardless of the level of risk, we apply

rigorous standards and processes to

manage them. Below we give examples

of how the risk framework has been

applied across some of our assets with

site-based targets.

Water resource Is there enough water available for both environment needs, community needs and our operational use?	The water resource risk at Oyu Tolgoi in Mongolia is assessed as moderate, even though it is located in the Gobi Desert. Oyu Tolgoi sources its water requirements from a deep water supply, the Gunii Hooloi aquifer, a 150-metre deep resource holding around 6.8 billion cubic metres of non-drinkable saline water. Oyu Tolgoi uses this water source efficiently with water recycling and conservation practices implemented across the operation.
Water quality and quantity Does the way we manage water on site, or discharge excess water, cause environmental impacts or operational constraints?	Our QIT Madagascar Minerals (QMM) operation in Madagascar operates in a highly sensitive area from a water, broader environment and community perspective. The discharges from our operation have the potential to impact receiving water quality and, therefore, the water quality risk is assessed as high. We are working to improve management activities on site, including our ability to more accurately measure our water discharge quality, and the deployment of a dedicated water treatment plant to adjust the discharge pH.
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 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 studies. We are working 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 lifecycle.

2023 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 global reporting

initiatives.

We also report on our aggregated water

balance for sites in water-stressed areas.

We assess water stress using the WRI’s

Aqueduct Water Risk Atlas mapping tool.

For more information see our 2023 Sustainability Fact Book at riotinto.com/sustainabilityreporting.

Our water numbers

Our total operational withdrawals for 2023

were 1,170GL (2022: 1,173GL.). Freshwater,

or category 1 quality, withdrawals accounted

for 424GL or 36% of this total (2022: 432GL).

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 2023 were 692GL (2022:

694GL). Total water recycled or reused for

2023 was 303GL (2022: 312GL).

Our 2019–2023 water targets

Our five-year water targets allow us to be

more transparent about our water usage, risk

profile, management and specific challenges.

These targets, and the data required to

measure progress against them, are helping

us become better water stewards.

Our water targets were set in 2019 and

consisted of one Group target and six site-

based targets, reflecting our catchment-based

approach and recognising that we manage

vastly different water-related risks across our

business.

The site-based targets were chosen based on

their water risk profile, our ICMM

commitments, and local community and

environmental interdependencies.

Environment continued

60 Annual Report on Form 20-F 2023 | riotinto.com

We successfully achieved our Group target in

2023. A disclosure platform was developed

and released, making public detailed

information about annual surface water usage

across our global network of managed sites in

35 countries; a first for the mining industry.

We attained four of our six site-based water

targets with improved understanding of our

responsibilities for water stewardship evident

throughout the business. Refer to the table

below for further details.

Throughout 2023, we continued embedding

our water risk framework and associated

controls across our product groups, and

commenced the development and

socialisation of our next round of nature-

related targets. Further details on the new

target program will be released during 2024.

Progress against our targets

Group target	Water risk theme	Status	Commentary
Rio Tinto Group (Tier 11)
By 2023, we will disclose – for all managed operations – permitted surface water allocation volumes, annual allocation usage and the associated surface water allocation catchment rainfall-runoff volume estimate.	Water resource	Attained	A disclosure platform was developed and released in 2023, making public detailed information about annual surface water usage across our global network of managed sites in 35 countries.
Site-based target	Water risk theme	Status	Commentary
Pilbara operations, Iron Ore (Tier 1)
Our Iron Ore product group will complete six managed aquifer recharge investigations by 2023.	Dewatering (aquifer reinjection)	Attained	Successful completion of six managed aquifer recharge investigations with another three investigations underway. Two of the investigations resulted in ongoing recharge programs.
Oyu Tolgoi, Copper (Tier 1)
Oyu Tolgoi will maintain average annual water use efficiency at 550L/tonne of ore to concentrator from 2019-23.	Water resource (intensity and efficiency)	Attained	Oyu Tolgoi maintained its average annual water use efficiency below 550L/ tonne for the period 2019-23. Oyu Tolgoi remains one of the most efficient copper operations in the industry.
Kennecott Utah Copper, Copper (Tier 1)
Kennecott will reduce average annual imported water per ton of ore milled by 5% over the 2014-18 baseline of 393 gal/ton (1,487L/ton) at the Copperton Concentrator by 2023.	Water resource (import reduction)	Not attained	With the exception of 2019, annual concentrator water intensity has remained above the 2014-2018 target baseline. Required changes to the concentrator process during 2020 resulted in increased water usage compared to the initial target baseline. Kennecott’s water usage has trended down since the implementation of these changes. Kennecott’s commitment to improve water efficiency through the concentrator successfully reduced intensity in 2022 and 2023 to approximately 10% lower than the period peak recorded in 2021.
Ranger Mine2, Energy Resources of Australia Limited (ERA), Closure (Tier 1)
ERA will achieve the planned total process water inventory treatment volume by 2023, as assumed in the Ranger water model.	Quantity/quality (inventory reduction)	Not attained	Since the commencement of the Water Target in 2019, ERA has implemented the process water treatment capacity upgrades that were envisaged in the Ranger closure plan of the time, including an upgrade to the capacity of its Brine Concentrator and the construction and subsequent upgrade of a Brine Squeezer. Despite these upgrades, process water treatment rates have not met expectations. Other changes in project schedule mean that the assumptions behind the Ranger water model used to set the Water Target are no longer valid. A feasibility study refresh completed in 2023 identified that ERA should move to a program management approach to the rehabilitation of Ranger, with additional studies required for the later stages of the project. The outcome of these additional studies will ultimately lead to an updated Ranger water model and a revised plan for process water treatment.
QIT Madagascar Minerals (QMM), Minerals (Tier 23)
QMM will develop and implement an improved integrated site water management approach by 2023.	Quantity/quality (discharge quality)	Attained	Actions committed to and in-progress as part delivery of the site-based water target include: –updated water management strategy and vision –host community engagement in water management activities –establishing a water treatment plant –improvements in data integrity and capability in testing controls –improved transparency and disclosure of water information –improvements in host community access to potable water.
Queensland Alumina Limited (QAL), Aluminium (non-managed joint venture) (Tier 2)
QAL will complete the following four water-related improvement projects from the QAL five-year environment strategy by 2023: –Project L1: integrity of bunds and drains –Project W3: caustic pipe and wasteline 4 integrity –Project W6: residue disposal area surface/ ground water impacts –Project W7: residue disposal area release to receiving environment.	Quality/quantity (discharge quality) Joint venture performance improvement	Attained	Progress of nominated water-related improvement projects is aligned with current project schedules. Refer to the 5-Year Environment Strategy on QAL’s website for further details.

For more information about our progress against our site-based water targets see www.riotinto.com/water.

1.Tier 1 water targets form part of the Rio Tinto external limited assurance program.

2.Ranger Mine is owned and operated by ERA. Rio Tinto is a 86.3% shareholder in ERA.

3.Tier 2 water targets do not form part of the Rio Tinto external limited assurance program.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 61

Biodiversity

We are dependent on healthy ecosystems to

run a successful business and we recognise

our responsibility to effectively mitigate the

impact of our operations on nature.

Healthy natural environments with functioning

ecosystems are key to climate resilience. They

also provide important services to the

communities where we operate and our

business. We are committed to protecting

biodiversity, and our ambition is to achieve no

net loss where we operate. This means

striking a balance between negative impacts

on biodiversity and positive outcomes

achieved through mitigation.

2023 progress

We are active members of ICMM and other

industry associations and working groups

seeking to drive improvements for our

industry. Our involvement in the ICMM

Taskforce on Nature-related Financial

Disclosures (TNFD) working group, Global

Reporting Initiative (GRI) Biodiversity

Technical Committee and the ICMM Nature

Working Group have contributed to the

development of important industry resources:

the TNFD framework, the draft GRI

Biodiversity Standard, and ICMM’s Nature

Position Statement.

We continue to assess the sensitivity of our

activities by using global datasets of

threatened species and conservation and

protected areas, developed by the UN

Environment Programme World Conservation

Monitoring Centre (UNEP WCMC). Together

with the UNEP WCMC, we completed an

updated biodiversity sensitivity study in 2023

to inform risk prioritisation across our

activities, including exploration and projects,

and support allocation of resources. Work will

continue in 2024, to be guided by the

recommendations of the TNFD framework.

We continue to innovate to help us become

better environmental stewards. In 2023, in

partnership with the UNEP WCMC, we piloted a

standard method for efficiently identifying

potential actions to deliver conservation value

beyond the management of our direct impacts.

Together with UNEP WCMC, we conducted

TNFD pilots at two sites (Simandou in Guinea

and Greater Hope Downs in Western Australia)

to inform the development of the framework.

This process provides us with a better

understanding of our impacts, dependencies

and importantly, the key environmental

monitoring and management activities that will

underpin future disclosure requirements.

In 2023, we continued the independent review

of monitoring programs at our high-priority

biodiversity sites.

This involved ensuring management plans and

actions adequately address biodiversity risks.

We completed this review at our Richards Bay

Minerals (RBM) site in 2023, with further

efforts planned for 2024.

We also submitted a revised Environmental

and Social Impact Assessment (ESIA) for our

planned mine and rail activities at our

Simandou project in Guinea, drawing on data

collected over the last decade, and have

progressed work to deliver an ESIA in 2024 for

the planned development of the port.

At our Weipa operations, we continue to use

machine-learning solutions to support research

and monitoring of the endangered Palm

Cockatoo and have partnered with the

Australian National University and Australia

Zoo’s Wildlife Warriors to better understand the

challenges faced by this species. This ensures

that leading conservation science informs our

decisions and helps bring balanced

perspectives, innovation and best practice to

responsible environmental stewardship.

For more information about our biodiversity work see riotinto.com/biodiversity.

Land

2023 progress

In 2023, we rehabilitated 22 square kilometres

of land, mostly at our iron ore mines and

exploration areas in the Pilbara, Western

Australia and our mineral sands mines in

South Africa and Madagascar. Of this, we

rehabilitated 4.5 square kilometres of ex-pit

landforms and legacy areas across our Pilbara

mines. This is part of our Iron Ore business’s

plan to increase rehabilitation, in partnership

with Pilbara Aboriginal businesses. Since

2021, we have completed 24 square

kilometres of land rehabilitation across our

Pilbara mine operations. 

In Mongolia, we have rehabilitated 4 square

kilometres of abandoned mine workings

based outside our operational footprint, along

valley floors and river beds in the Selenge

province. This is a part of Oyu Tolgoi’s

commitment to the Government of Mongolia’s

national movement to plant one billion trees by

2030.

In 2023, our land footprint – total disturbed

area – was 3,848 square kilometres, an

increase of 38 square kilometres compared to

2022. This includes all disturbances to our

operating assets and activities, such as

exploration activities, smelters, mines and

supporting infrastructure.

Our rehabilitation teams continue to partner

with research centres and universities to refine

our rehabilitation approaches and improve

outcomes.

We continue to support the Australian-led

Cooperative Research Centre for

Transformation in Mining Economies (CRC

TiMe) through research that addresses the

complex challenges underpinning mine

closure and relinquishment. At our bauxite

mines and refineries we have continued trials

focusing on transforming stored tailing

material into soils that will support plant

growth. We also continued trials using

satellite-derived data to test methodologies

aimed at providing insights to support on-

ground monitoring for vegetation and erosion

monitoring of rehabilitation. In addition, 16 of

our operations completed rehabilitation trials

to improve seed germination, erosion and

topsoil quality.

For more information about our closure work see page 64.

Waste

2023 progress

Waste and residues from our operational

activities are key areas of our environmental risk

management. In 2023, we continued to focus on

managing potential contamination from these

sources. This included work to remove all use of

PFAS (perfluoroalkyl and polyfluoroalkyl

substances) in fire-suppression systems at our

sites, which will continue through to 2024 due to

delays in retrofits of equipment and infrastructure

and challenges sourcing alternative fluorine-free

substances for use in fire-suppression systems in

some jurisdictions.

At some of our long-life assets, we continue to

evaluate waste management practices of the

past that have led to a need for remediation in

the present. We focus on finding better ways to

extract maximum value and to transform waste

and by-products from our operations into

materials the world needs. One example is our

work to sustainably extract and produce high-

purity scandium oxide and tellurium from waste

streams.

We also continue to look for opportunities to

repurpose items we purchase at the end of

useful life. For example, in 2023, we partnered

with a local business to trial recycling end-of-life

conveyor belts used to move iron ore across our

Pilbara operations. This trial will continue into

early 2024 and has the potential to divert 10,000

to 15,000 tonnes of waste from landfill every

year.

Some of our assets generate mineral waste with

the potential to be chemically reactive, requiring

careful management to prevent environmental

impacts. We conduct independent reviews every

four years to assess the effectiveness of our risk

management programs and identify areas for

improvement. In 2023, this was done at two sites

– Diavik in Canada and RBM in South Africa. The

review at Diavik revealed long-term progress in

managing and controlling our mineral waste

risks. At RBM there were no risks of critical or

high significance, and the risk posed by reactive

mineral wastes at the asset was low.  Further

opportunities to improve mineral waste

management will continue at both sites in the

short and long term.

For more information about tailings see page 64.

Environment continued

62 Annual Report on Form 20-F 2023 | riotinto.com

	Turning slime into solar panels Tellurium is one of the rarest elements on Earth, usually found in small, sparse rock deposits, making it difficult to mine at scale. But at our Kennecott copper operations near Salt Lake City, Utah, we have discovered a way to extract tellurium from an unlikely source – slime waste material. And while we know we have more to do to eliminate waste completely, Kennecott’s tellurium plant is the latest example of work we are doing globally to minimise our waste by finding a use for every material we dig from the ground or creating new products from the waste itself.
		For more information about how we extract tellurium from slime see riotinto.com/telluriumfromwaste.

Air quality

Clean air is critical for the health of our host

communities and the surrounding ecosystems.

We are working to improve air quality

management, focusing on emissions of

particulate matter and gases from our

operational activities, including mining,

materials handling, processing and

transportation. 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 focus on reducing emissions at source by

upgrading equipment to use the best available

technologies, adding air pollution control

equipment, implementing mitigation measures

and using renewable energy or alternative

feed material where possible. Our air quality

management programs include monitoring,

sampling at source, incident tracking and risk

assessments.

Many of our assets have multi-year air quality

improvement projects in place. For example, at

Iron Ore Company of Canada (IOC), there is a

multidisciplinary working group focused on

assessing dust abatement options. We are

mitigating dust at the source by introducing new

dust control technology at the induration machine

stacks. The working group is also exploring

biodegradable dust suppressants to limit wind

erosion at IOC's tailings facilities. We have

expanded our air quality monitoring network at

IOC’s mine in Labrador City and  at our Rio Tinto

Iron and Titanium Quebec Operations Sorel-

Tracy plant.

In some instances, we exceeded permissible

dust levels at nearby air quality monitoring

stations. We investigated all high dust

concentration events. Most resulted from

unusual forest fires, such as those close to our

operations in Sept-Îles, Canada, in June,

where exceedances were observed over a

large region. Improving our air quality

monitoring network over the coming years will

help us to prevent dust incidents in the future.

Operational environment overview

	2023	2022	2021	2020	2019
Significant environmental incidents1	1	0	3	0	0
Fines and prosecutions – environment ($’000)2	987	110	7	27	19
Land footprint – disturbed (cumulative square kilometres)	3,848	3,810	3,735	3,630	3,627
Land footprint – rehabilitated (cumulative square kilometres)	552	522	494	490	489
Mineral waste disposed or stored (million tonnes)	977	978	1,005	987	905
Non-mineral waste disposed or stored (million tonnes)	0.73	0.75	0.65	0.47	0.28
SOx emissions (thousand tonnes)	72.5	66.2	70.2	75.7	76.8
NOx emissions (thousand tonnes)	64.8	64.6	62.3	65.2	63.4
Fluoride emissions (thousand tonnes)	2.61	2.36	2.36	2.27	2.34
Particulate (PM10) emissions (thousand tonnes)	146.0	146.3	142.3	143.2	130.7

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 five 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. The severity categories were updated for incident reporting in 2023 based on changes to Rio Tinto's risk matrix and associated environment

consequence descriptors..

2.In 2023, we paid environmental fines totaling $986,968 resulting from non-compliant storage of residue materials as well as exceedance of the annual mobile fluoride load within the final effluent

at Alma, Canada; spillage of an acidic substance at a discharge outfall at Arvida, Canada; exceedance of the annual mobile fluoride load within the final effluent at Laterriere, Canada; removal of

an elm tree as well as the drowning of two Goitered Gazelles at the tailings storage facility at Oyu Tolgoi, Mongolia; release of water with a slightly elevated total suspended solids concentration

than authorised by the site’s Environmental Authority from Yarwun, Australia; multiple breaches (13) of land clearing conditions relating to iron ore exploration activities within the Pilbara region,

Australia; separate spills  of caustic and acidic materials, as well as a fine for a separate administrative non-compliance issue, at Sorel Tracey, Canada; and failure to immediately notify the

regulators of a dangerous substance spill at Havre Saint Pierre, Canada..

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 63

Mining and metals practices

Tailings

We engage with stakeholders throughout the

lifecycle of our tailings storage facilities, from

design to closure. We also collaborate closely

with external bodies to improve the way

tailings are managed across our industry.

We operate 98 tailings storage facilities

(TSFs) across our global assets. Thirty-nine

are active TSFs, 26 are inactive and 33 are

closed. There have been no external wall

failures at any of our TSFs for more than 20

years.

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

at riotinto.com/tailings. We periodically update

the list of TSFs to reflect operational and

ownership changes, including 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 2020.

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.

2023 progress

We have continued to progress our

implementation of the Global Industry Standard

on Tailings Management (GISTM), which 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.

Much of the implementation work is already

complete for the tailings facilities that have a

“very high” or “extreme” consequence

classification, and all these tailings facilities

are nearing conformance with the GISTM.

However, there is still work to do to complete

the implementation and to embed the changes

made.

Implementation work programs are specific to

each tailings facility, and while the timing for

completion of each work program varies, we

anticipate that we will deliver this work

progressively and that all “very high” and

“extreme” consequence classification tailings

facilities will fully meet the requirements of the

GISTM in 2024 (except where longer-term

engineering works are required).

In August 2023, we disclosed detailed

information for the tailings facilities we operate

that are rated “very high” or “extreme” under

the GISTM consequence classification

scheme. We also disclosed information on the

other tailings facilities we operate that have

lower GISTM consequence classifications,

based on the Investor Mining and Tailings

Safety Initiative (IMTSI) request for public

disclosures on tailings.

For more information about our most recent tailings facilities disclosures see our interactive map at riotinto.com/tailings.

In 2023, we:

–Continued to regularly convene the Tailings

Management Committee with our

designated Accountable Executives, which

provides coordinated governance of tailings

management practices across the Group.

–Conducted multi-disciplinary risk

assessments for all our “very high” and

“extreme” consequence facilities.

–Continued to partner with BHP on tailings

filtration solutions at very high throughputs

for copper operations, which supports our

goal of increasing water recovery and

recycling.

–Continued to support the Future Tails

partnership, a collaboration between

Rio Tinto, BHP and the University of

Western Australia (UWA). In 2023, seven

students were awarded a Graduate

Certificate in Tailings Management from

UWA, three of whom are Rio Tinto

employees. This year, the program had 91

students from 15 countries who have

enrolled in 262 micro-credentialled units.

Two PhD candidates also commenced their

research programs in 2023.

–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 and repurposing

As we mine and process metals and minerals

we have an environmental and social impact.

Our aspiration is to create a positive legacy,

meeting our commitments to stakeholders and

host communities, and deliver environmental,

social and financial value. The end of an

asset’s life is an opportunity for a new

beginning. We are finding better ways to

repurpose and renew our assets.

2023 progress

Our approach

We recognise we are often a short chapter in the

long history of the land where we operate.

Understanding this, our first step is to work with

stakeholders to develop a shared vision for the

future and a pathway to deliver that together. 

Today, we incorporate closure through each

stage of the asset lifecycle, in the way we

design, build and operate. In 2023 we made it

easier for operating assets to fund progressive

closure work to reduce our impact. For more

information on progressive rehabilitation in

2023, see page 65.

We develop asset closure strategies to identify

potential future land uses and focus on

opportunities to reduce closure costs and risks

over the asset lifecycle. We completed eight

additional asset closure strategies in 2023, and

now have these in place for 59%  of our active

operations. 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 closure is

considered through asset design, planning and

operations.

To bring greater certainty to our closure plans,

we are undertaking 16 closure studies across

operations and our legacy portfolio.

For more information about our closure risks see page 88.

90+

legacy assets managed within our portfolio

59%

of our active operations have asset closure

strategies in place

$17.2bn

in closure provisions on our balance sheet

at the end of 2023 (2022: $15.8bn)

Environment continued

64 Annual Report on Form 20-F 2023 | riotinto.com

Partnering

We partner to ensure decisions from design

through to operations create social, economic,

and environmental value when mining and

processing ends.

–To build industry capability and share best

practices in closure, we developed the

Leadership in Sustainable Mine Closure

Program in partnership with the University of

British Columbia, Curtin University and Ernst &

Young.

–To reduce our waste inventory, we continue

to explore circular economy options. We

began a trial to recycle end of life tyres and

belts at Argyle and we completed the first

shipments of scrap steel from the Gove

refinery for recycling.

–To identify opportunities to create value, we

consider options for reprocessing.

At Nevada Copper, a former copper site in

McGill, Nevada, US we completed a drilling

program with Regeneration Enterprises.

–To create long-term social and economic

value from the remediation effort at

Beatson, a series of former underground

copper mines on Latouche Island in

Prince William Sound, Alaska we signed a

Memorandum of Understanding with the

Native Village of Chenega, an Alaska Native

tribe, and Chenega Corporation, an Alaska

Native corporation, establishing a

framework for collaboration toward

achieving common goals.

Innovating

We innovate to seek lasting benefits. We

partner with universities, governments and

other organisations to find opportunities to

repurpose and reprocess mineral and

industrial waste, improve treatment and

valorisation of mining-influenced waters, and

explore the social aspects of mine closure.

–Our Mining Influenced Water Challenge was

launched to inspire solutions for sustainable

water treatment through closure. We received

98 submissions from 36 countries. We have

committed to fund $15 million over three years

for the 13 projects selected.

–We launched a crowdsourcing campaign

through the Pioneer Portal to seek partners to

develop a remote sensing solution for

environmental monitoring and mineral waste

characterisation receiving 100 concept papers.

–We continue to progress our partnership with

the Mining Microbiome Analytics Platform to

better understand the data collected about

the microbes we have at our sites and how

they can support rehabilitation and recover

metals from mineral waste at closed sites.

We continue to build our expertise and learn

as we execute closure work and manage our

legacy portfolio.

Argyle diamond mine

We continue to rehabilitate the Argyle diamond

mine on Miriwoong and Gija country in

Western Australia. In 2023, we completed

removal of the processing plant above ground

infrastructure, continued reprofiling of the

alluvial mining and waste rock landforms and

capping of the tailings storage facility. We

have reviewed our contracting strategy to

increase work awarded to Traditional Owner

businesses, increasing our spend to A$33

million in 2023 (2022: A$21 million). We are

engaging with Traditional Owners on how to

best support and expand meaningful

participation. 

Gove refinery and residue disposal areas

In 2023, we began the largest demolition project

in the Southern Hemisphere at the Gove refinery

in the Northern Territory, Australia.  While water

treatment and capping of the residue disposal

areas continues, we are working closely with

Gumatj and Rirratjingu Traditional Owners, and

the Northern Territory Government, to plan for the

future of the region beyond mining. In 2023, we

spent A$94 million with Traditional Owner

businesses, a decrease on the previous year due

to lower global fuel prices (2022: A$101 million).

Ranger uranium mine

Energy Resources of Australia (ERA) is

rehabilitating the Ranger uranium mine in the

Northern Territory, Australia. We are committed to

the successful 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

acknowledge the Traditional Owners’, the Mirarr

People, consistent opposition to developing the

Jabiluka uranium deposit and restate our full

support for ERA’s commitment that the deposit

would never be developed without the Mirarr

People’s consent. Our utmost priority and

commitment is to the rehabilitation of the Ranger

Project Area in a way that is consistent with the

wishes of the Mirarr People.

On 4 April 2023, we announced our support

for ERA’s Interim Entitlement Offer (IEO),

which raised approximately A$369 million to

address funding requirements for the Ranger

Rehabilitation Project to the end of the second

quarter of 2024.  Rio Tinto, which owns 86.3%

of ERA's shares, subscribed for its full

entitlements under the terms of the IEO, at a

cost of A$319 million. 

In October 2023, ERA announced that the

findings of a 2022 Feasibility Study were

under review. The study was undertaken on a

lower technical risk rehabilitation methodology

and to further refine the Ranger Project Area

rehabilitation execution scope, risks, cost and

schedule. In December 2023, ERA announced

that they expected rehabilitation costs to

materially exceed the previously estimated

range and expected to increase their closure

provision to approximately A$2.3 billion.

Rio Tinto continues to provide project support,

including organisational and technical support,

as requested by ERA. For more information,

please visit ERA’s website.

Legacy assets

We manage over 90 legacy assets in nine

countries and 28 tailings storage facilities, for

more information on tailings management see

page 64.

In 2023, we donated over 28 acres of land to

the Southwestern Oregon Community College

in Brookings, Oregon, US to support the

expansion of their Curry Campus. The

donation triples the size of the Curry Campus

providing additional education opportunities in

the region.

In France we opened an eco-park in

partnership with the French Ministry of

ecological transition at Le Thoronet, a former

bauxite mine. The park features hiking trails

and diverse habitat areas to support

local wildlife.

We completed relinquishments at Lochacker

Schreiber, a former landfill in Switzerland

returning the land to local government for

future use, long-term management

and monitoring.

At Kelian, a former gold mine in Indonesia we

have entered into a post-mining agreement

with the province of East Kalimantan, under

the supervision of the Ministry of Environment

and Forestry to support the long-term

management of the site. We have completed

the restoration of the environment in the

protected forest, which contains a rhinoceros

sanctuary. 

For more information about closure provisions and financial statements see page 196.

	Building capability in closure Mine closure is a complex challenge that we face as an industry. Changing societal expectations mean the landscape is evolving and we need to develop specialist skills and capability in closure. We developed the Leadership in Sustainable Mine Closure Program in partnership with the University of British Columbia, Curtin University and Ernst & Young to help meet this need and create opportunities to share best practices and learnings. Learn how some of our first program participants are finding better ways to incorporate closure into their work.
		For more information see riotinto.com/closure.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 65

Social performance Our operations can have far-reaching impacts on society. We work hard to avoid or minimise adverse impacts and seek to understand, and invest in, the diverse knowledge, cultures and resources that exist in areas where we operate. Our ambition is to contribute to positive and enduring outcomes for our workforce and the communities and countries where we operate.

Community

engagement and

social investment

The strength of our relationships with the

communities where we operate, and broader

society, is fundamental to our business.

Without the support from host communities we

can not operate successfully.

Through our partnerships, we strive to support

communities in achieving their aspirations and

improve lives by contributing to social and

economic outcomes, all while respecting and

protecting their connection to culture and

nature.

We have evolved our approach to engaging

with communities and Indigenous Peoples

across our business. By listening to

understand, being willing to learn from our

mistakes and genuine partnering, we will

deliver better long-term outcomes for

everyone. It enhances our understanding and

appreciation of the people and diverse

cultures in the geographies where we work.

Our relationships with Indigenous Peoples are

a priority for us and we especially value our

agreements with First Nations People of the

lands on which we operate. 

We seek out the voices of communities to

inform our planning and decision making, and

it helps us manage our impacts better,

contribute to social outcomes and preserve

and protect heritage.

Our Communities and Social Performance

(CSP) teams work across our entire business

and include people with a range of expertise,

from archaeologists, anthropologists, social

scientists and economic development experts,

to human rights specialists and operational

leaders. While these teams help to implement

our technical activities, everyone in our

business has a role to play in our social

licence.

Our assets operate in line with our global

Communities and Social Performance

Standard, which was revised and

strengthened in 2022. Our standard provides

clear direction on what success looks like and

the minimum requirements expected across

our global business.

2023 progress

We continue to strengthen our social

performance capacity and capability to be

better operators and partners. Throughout

2023, our CSP practitioners undertook online

learning, communities of practice and face-to-

face cross-functional workshops. We have also

added central roles in key areas such as

heritage, agreements and human rights.

Understanding and acting on the perceptions

of communities who host our operations is

essential. In 2023, we trialled a new program

which will be rolled out across the Group in

2024 and 2025, to help us more effectively

engage and better understand our host

communities’ perceptions, leading to improved

data-driven social performance.

CSP targets

In 2023, we progressed initiatives towards our

2026 CSP targets. We focused on developing

and implementing frameworks and

measurement criteria for both cultural heritage

co-management and social investment

strategic partnerships. Our human rights

training continued throughout the year, with

planning for expanded online learning

programs.

For more information about our CSP targets see page 43.

Yinjaa-Barni Art, Roebourne, Australia
66	Annual Report on Form 20-F 2023  |  riotinto.com

Country updates

QIT Madagascar Minerals (QMM), Madagascar

In 2023, QMM faced protests led by

representatives of a local association. The

protests affected the safety and well-being of

employees and people in the communities and in

October 2023, an altercation between protesters

and public security forces escalated into violence.

Public security forces officially reported one

person died, and one person was injured. We are

committed to learning from this tragic event and

will work together with local communities and

other stakeholders through open, meaningful,

and respectful dialogue to seek to prevent such

incidents in the future and find safe, peaceful and

long-term solutions to community concerns.

In 2023, QMM committed to increase its

community and social investment spend

to $4 million per year, on projects to be

co-designed with communities, authorities

and government, and which are consistent

with local, regional and national development

plans. This is part of a range of initiatives aimed

at maintaining trust and collaboration with

local communities. Our commitment to

reforestation also continues through our initiative

to help local communities establish village tree

nurseries.

Resolution Copper project, Arizona, US

At our Resolution Copper project, we are

committed to preserving Native American and

local community cultural heritage and bringing

lasting benefits to the entire region. We

continue to strengthen relationships with local

communities and Native American tribes by

deepening our engagement and partnership

support. In 2023, we signed agreements with

a number of Native American tribes with

ancestral ties to the land, to work together on

youth recreation, cultural preservation and

economic initiatives. We also finalised a

Good Neighbour agreement with the Town

of Superior to define the relationship with

the town and local community groups over the

life of the mine.

Resolution Copper also entered into

several multi-year partnership agreements

with local and national-level Native American

organisations supporting education

and youth recreation, including the

American Indian Science and Engineering

Society (AISES), the Native American

Basketball Invitational (NABI) and the Belvado

Foundation at the San Carlos Apache

community. 

For more information visit Resolution Copper’s website resolutioncopper.com/cultural-heritage.

Simandou project, Guinea

At our Simandou iron ore project, we work with

local communities to design and deliver local

social investment programs, regional

economic development programs and

livelihood restoration initiatives to build

community resilience and support the future of

the operation. By raising local capacities,

engaging with local entrepreneurs, and

investing in training and development, we

hope to contribute to a better future for the

local communities.

We also work with our infrastructure and joint

venture partners to ensure a consistent

application of internationally recognised

environmental and social performance

standards across the entire project. And we

are implementing human rights due diligence

processes to understand our potential human

rights impacts and ensure our employees,

contractors and those in the local communities

are treated with dignity and respect.

Oyu Tolgoi, Mongolia

At Oyu Tolgoi, we strive to be a leader in

sustainable social and economic change

through partnerships with local communities

and government. Since 2015, we have made

an annual contribution to the regional

Development Support Fund (DSF) –

administered jointly by Oyu Tolgoi and the

community – for community initiatives in the

Umnugovi aimag. In 2023, the fund provided

$6.2 million to help complete a local school,

kindergarten and health care centre and

construct sewage pipelines, pasture irrigation,

waste plant and rare animal protection

projects. This has improved accessibility and

provided a better standard of living for

community members.

The Future Generation Special Fund makes up

5% of the annual DSF investment and provides

development opportunities for youth. In 2023,

114 local students were awarded the Goviin Oyu

scholarship to study in specialist fields. Since

2015, 519  students have received scholarships,

and of these, 70% have been hired for jobs in

their local communities.

Employment from the local communities at Oyu

Tolgoi increased by 10% in 2023 due to a

comprehensive recruitment process and local

talent development. There is also a focus on

strengthening the local and national supply chain

with local spending increasing from $261 million

in 2022 to $272 million in 2023.

In 2023, Oyu Tolgoi committed $50 million

over five years to support the Khanbogd Soum

town development by 2040. Some

infrastructure projects are already underway,

including the construction of a road, a public

square, a recreational sport centre and the

renovation of the local hospital.

Oyu Tolgoi also continues to work with

herders, local communities and the

government to improve water accessibility and

address the increased demand for water.

Panguna mine, Bougainville,

Papua New Guinea

The Panguna mine was operated by Bougainville

Copper Limited (BCL), majority-owned by Rio

Tinto, for 17 years from 1972 until 1989, when

operations were suspended due to a civil war,

which lasted until 1998. In 2016, we transferred

our 53.83% majority shareholding in BCL to the

Autonomous Bougainville Government (ABG)

and the Papua New Guinea (PNG) Government

for no consideration, enabling the ABG and PNG

to hold an equal share in BCL of 36.4% each.

In September 2020, the Human Rights Law

Centre (HRLC) filed a complaint against Rio

Tinto on behalf of 156 Bougainville residents

with the Australian National Contact Point

(AusNCP) regarding the Panguna site.

In 2021, as an outcome of the AusNCP

engagement, a joint committee of stakeholders,

the Panguna Mine Legacy Impact Assessment

Oversight Committee (Committee), was formed

to oversee a detailed independent assessment of

the Panguna mine. The Panguna Mine Legacy

Impact Assessment (Legacy Impact

Assessment) will cover the environmental

impacts, and directly connected social and

human rights impacts, caused by the Panguna

mine since the cessation of mining. The

Committee is chaired by an independent

facilitator with representatives from the ABG,

the Independent State of PNG, clan leaders

and landowners, local communities, Rio Tinto,

BCL and HRLC. It has met regularly since

its formation.

In 2022, the Committee selected and

endorsed Tetra Tech Coffey to undertake

phase 1 of the Legacy Impact Assessment.

The Legacy Impact Assessment began in

December 2022 and continued throughout

2023 with three field campaigns completed

successfully. The field work in 2023 included

interviews with community members across

the study areas as well as assessing the

stability of aging mine infrastructure and

impacts related to water quality and flooding.

The Legacy Impact Assessment will provide all

parties with a clearer understanding of the

human rights impacts, so we can consider the

best way forward together. Results will be

presented to the Committee when phase 1 is

completed (due 2024).

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 67

Compagnie des Bauxites de Guinée SA (CBG),

Guinea

CBG is a bauxite operation in Guinea owned

by Halco Mining Inc. (51%) and the Guinean

Government (49%). Halco is a consortium

comprised of Rio Tinto (45%), Alcoa (45%)

and Dadco Investments (10%). Rio Tinto

participates on the boards of Halco and CBG,

with representation on various shareholder

oversight committees. 

Through our Board and committee roles,

we monitor and support CBG’s approach to

environmental protection, community issues

and human rights. We are aware of the

concerns regarding access to land and water,

and the pace of livelihood restoration

programs as well as concerns regarding

CBG’s stakeholder engagement.

In 2023, sustainability advisory committees

at Halco and CBG levels met regularly,

strengthening our governance oversight and

providing support to CBG for the improvement of

CBG’s social and environmental practices,

including for the development of an ongoing

human rights due diligence process. Both the

Halco and CBG advisory committees are closely

following CBG’s response to a complaint made to

the International Finance Corporation’s (IFC)

Office of the Compliance Advisor Ombudsman

(CAO). The mediation process facilitated by the

CAO has conducted four plenary sessions and

several other bilateral meetings between the

parties in 2023. Through a collaborative

approach, important progress was made with

agreements on CBG’s practices on stakeholder

engagement and management of grievances.

Additionally, the implementation of previous

agreements on blasting and access to water

have progressed, delivering positive outcomes to

local communities. Halco continues to participate

in the mediation process as an observer,

alongside the IFC.

Social investment

We have a long history of partnering to support

the host communities and regions where we

operate. We employ local people, buy local

products, and engage local services. In 2023, our

total voluntary global social investment was $84

million, covering a wide range of social and

economic programs. And we introduced a new

company-wide approach to social investment,

which focuses on working together with

communities to find out what is important to them

so we can make decisions that will deliver

positive and enduring outcomes. This is essential

for our continued social licence in an increasingly

complex world..

For more information about our partnerships and community engagement see riotinto.com/ socialeconomicdevelopment

Update on our

communities and social

performance commitments

This section provides an update on our CSP

commitments  made after the tragic destruction

of the rock shelters at Juukan Gorge in May

2020. This remains an important area of focus,

as we continue to find better ways, recognising

we always have things to learn.

In 2021 and 2022 we asked Traditional Owner

groups in the Pilbara to share feedback on our

progress on some of the commitments we

made as part of the Rio Tinto Board Review in

2020 on cultural heritage management. We

repeated this process in 2023 with six out of

ten Pilbara Traditional Owner entities choosing

to respond. The verbatim feedback is

presented on our website at riotinto.com/

juukangorge as it was provided, with only the

names removed for anonymity. We now have

a three-year longitudinal perspective on our

relationships. We have summarised our

progress under three areas: relationships,

governance and process, and leadership

and inclusion.

For more information see our 2021 and 2022 Communities and Social Performance Commitments Disclosures at riotinto.com/cspreport.

Relationships

We are finding better ways to work with

communities and Indigenous Peoples,

particularly in how we protect heritage.

We are moving to a model of co-management,

working in partnership with Indigenous

Peoples across our operations. Our approach

aims to enhance our understanding and

appreciation of Indigenous cultural heritage

and ensure that Indigenous voices inform our

planning and decision making.

Social, Cultural and Heritage

Management Plans

In 2023, our Iron Ore business advanced five

Social, Cultural, and Heritage Management

Plans for proposed developments, with

positive feedback by Traditional Owners.

It is based on building understanding,

co-designing, partnering, and transparently

sharing information.

Memorandum of understanding with

Yindjibarndi Energy Corporation

We are exploring new economic models to

increase First Nations participation in our

business. In October 2023, we announced a

memorandum of understanding (MoU) with the

Yindjibarndi Energy Corporation to explore

opportunities to collaborate on renewable

energy projects on Yindjibarndi Country in the

Pilbara region of Western Australia. Together,

we will consider a range of opportunities,

including wind and solar power and battery

energy storage systems.

Nammuldi cultural heritage incident

In August 2023, as part of our cultural heritage

monitoring and management processes, we

identified the fall of a Pilbara scrub tree and a

one cubic metre rock from the overhang of a

rock shelter in an area adjacent to the

Nammuldi mine site. As soon as we identified

this, we paused nearby blasting work

occurring 150 metres away, and notified the

Traditional Owners of the land, the Muntulgura

Guruma People. We have apologised to the

Muntulgura Guruma People, who we deeply

respect, and are continuing to work closely

with them. We’ve completed a detailed review

to understand what happened and how we

can improve.

We are working through the outcomes of the

review with the Muntulgura Guruma People.

We will continue to listen, learn and improve

our ways of working.

Working with Indigenous communities

in Canada

Healthy community relationships are essential to

our operations and future growth. We have 12

active long-term impact benefits/participation

agreements with Indigenous communities in

Canada, supported by proactive site-based and

regional engagements.

Naskapi Nation and Iron Ore Company of

Canada agreement 

In February 2023, the Naskapi Nation of

Kawawachikamach and Iron Ore Company of

Canada (IOC) signed an agreement to

establish a mutually beneficial relationship

based on dialogue, collaboration and trust.

This socio-economic agreement aims to

create opportunities for greater participation by

Naskapi People in IOC’s activities through

training and development, employment,

collaboration on environmental projects, and

procurement. It will also protect and

encourage the practice of traditional activities

and provide long-term financial benefits to the

Naskapi Nation.

Cheslatta Carrier Nation visit Australia

We are increasing engagement, participation

and encouraging learning. In 2023, the

Cheslatta Carrier Nation from British Columbia

attended the World Mining Congress in

Brisbane, and visited our Weipa operations in

Queensland where they met with Traditional

Owners.

Governance and process

During 2023, we continued to implement our

Communities and Social Performance

Standard, and revise systems and processes

to help us meet external expectations and

deliver better social and human rights

outcomes. We have strengthened our social

risk framework, and our teams’ understanding

of social and human rights risks.

Australian Advisory Group

We established the Australian Advisory Group

(AAG) in 2022 to provide independent expert

advice to our executives on matters impacting

our operations in Australia, with a priority focus

on First Nations issues and opportunities. The

group met four times in 2023, including site

visits to Weipa and the Pilbara. An

independent review of the AAG was finalised

in October to ensure the AAG continues to

operate in a way that adds genuine value to

our business.

Social continued

68 Annual Report on Form 20-F 2023 | riotinto.com

The Oxford Leading Sustainable Corporations

Programme

A recommendation from the Juukan Gorge

Board review in 2020 was to strengthen our

leaders’ understanding of current and

emerging environmental, social and

governance (ESG) issues to better preserve

cultural heritage. In 2022, we partnered with

Saïd Business School, University of Oxford to

pilot their Leading Sustainable Corporations

Programme. In 2023, 116 leaders completed

the 12-week course. Learning outcomes and

feedback were overwhelmingly positive,

igniting new discussions about sustainability

that will support our decarbonisation

objectives, mutually beneficial sustainability

outcomes for communities and the long-term

success of the business. It will be offered

again in 2024.

Independent Cultural Heritage

Management Audit

In March 2023, we published an independent

report (produced by ERM, a global

sustainability consultancy) on a global audit of

our cultural heritage management

performance.

The audit was completed throughout 2021 and

2022 across 20 assets in Australia and 17

assets in other countries where we operate,

including Canada, South Africa, US and

Mongolia. The audit identified areas where we

are achieving leading cultural heritage

practices but also areas where we need to

improve our performance. Based on the report

recommendations, we are developing a

consolidated action plan and a cultural

heritage maturity model to monitor progress

across the business.

For more information see the results from the Independent Cultural Heritage Management Audit at riotinto/culturalheritage.

Leadership and inclusion

We are fast-tracking Indigenous Australians

into professional and leadership roles to

ensure we have a stronger representation of

diverse voices at our decision-making tables in

Australia. In 2023, we revised our target to

have 100 Indigenous leaders by 2025. Having

true diversity of perspectives, and an

Indigenous lens on decision making, will guide

our company moving forward.

Creating an environment that is safe for

Indigenous employees is a priority. Our

cultural safety initiative “Care for Mob” will be

delivered against a national framework in

partnership with the Everyday Respect

taskforce to ensure all employees feel safe,

supported and respected.

In 2023, we launched the Elevating Voices

Network in Australia. The Network is led by a

small group of Indigenous and non-Indigenous

employee volunteers who come together to

activate events, activities and conversations.

By encouraging connections, building cultural

intelligence, and fostering a more culturally

safe company, the Elevating Voices Network

aims to create stronger links for collaboration,

celebrate representation of our Indigenous

workforce, enhance current and future

initiatives and complement meaningful

workplace opportunities through engagement.

We have also continued our Cultural Connection

program to ensure leaders can navigate and

understand Indigenous culture and build strong

trusted relationships with the Indigenous

community and Indigenous employees in

Australia. In 2023, we introduced this program to

our Communities and External Affairs team in

Mongolia, to uplift their cultural knowledge in

preparation for a cross cultural visit between the

Nyangumarta Traditional Owner group in

Australia, and Mongolian herders and employees

in Mongolia.

Indigenous participation

In 2023 we re-established the Aboriginal

Training and Liaison (ATAL) program through

a co-design process with the Traditional

Owner groups we work with in the Pilbara.

This work-ready program is focused on

empowering participants to develop skills for

ongoing employment in different jobs and

industries across the Pilbara.

Indigenous partnerships

One of our priorities is partnering with local

and national Indigenous organisations to

provide support in key areas such as

economic development, community

empowerment, preserving traditional

knowledge and practices and promoting

sustainable development and social inclusion.

In November 2023, we announced a five-year

partnership with First Nations Media Australia

(FNMA) to help them digitise and preserve at-

risk media (audio and video tapes) from the

1970s to 1990s. The FNMA Archiving Project

will support First Nations media organisations

and other Central Australian-based Aboriginal

media organisations.

The partnership sits within our Living

Languages Living Cultures program, which

has been designed to promote the recognition,

preservation, and revitalisation of Australian

Indigenous languages and cultures for the

benefit of Australian Indigenous communities. 

Supporting Indigenous businesses

We support local businesses, employ local

people and buy local products, especially from

Indigenous, small and regional businesses. In

2023, we spent more than A$725 million with

Indigenous businesses across Australia – an

increase of 28% on the year before.

We are also increasing our spend with local and

Indigenous businesses in Canada and the US. In

2023, we spent $190 million with Indigenous

suppliers in North America. We do not always get

it right, but when our local suppliers have

concerns, we listen and learn. In February 2023,

at our Rincon lithium project in Argentina, some

members of local Indigenous suppliers blocked a

road to the site due to concerns about the

procurement process. We met with the

communities, listened to the issues and made

changes to facilitate their ability to access

contracts.

Truth and reconciliation

In 2023, we supported the referendum for an

Aboriginal and Torres Strait Islander Voice in

the Australian Constitution and provided a

corporate donation to the “Yes” campaign.

The “No” outcome does not change our

support for constitutional recognition for

Indigenous Australians. As one of the largest

employers of Indigenous Australians and a

company that operates on the lands of

Indigenous Peoples, we have long supported

constitutional recognition for Indigenous

Australians.

In Canada, we continue to create learning

opportunities for our people to raise

awareness about the history, culture and rights

of Indigenous Peoples. In 2023, we introduced

a new online training on awareness of

Indigenous culture and issues, across all our

Canadian sites. We held a series of

educational events to celebrate National

Indigenous History Month, and to

commemorate Truth and Reconciliation Day.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 69

Economic contributions ($ million)

	2023	2022	2021	2020	2019
Consolidated sales revenue	54,041	55,554	63,495	44,611	43,165
Net cash generated from operating activities1	15,160	16,134	25,345	15,875	14,912
Profit after tax for the year2	9,953	13,048	22,597	10,400	6,972
Underlying earnings2	11,755	13,359	21,401	12,448	10,373
Underlying earnings per share (US cents)2	725.0	824.7	1,322.4	769.6	636.3
Net (debt)/cash	(4,231)	(4,188)	1,576	(664)	(3,651)
Capital expenditure3	(7,086)	(6,750)	(7,384)	(6,189)	(5,488)
Employment costs	(6,636)	(6,002)	(5,513)	(4,770)	(4,522)
Payables to governments4	(7,881)	(9,313)	(12,789)	(8,224)	(7,175)
Amounts paid by Rio Tinto	N/A5	(10,779)	(13,334)	(8,404)	(7,635)
Amounts paid by Rio Tinto on behalf of its employees	N/A5	(1,622)	(1,486)	(1,353)	(1,284)

1.Data includes dividends from equity accounted units, and is after payments of interest, taxes and dividends to non-controlling interests in subsidiaries.

2.Comparative information for 2022 and 2021 has been restated to reflect the adoption of narrow scope amendments to IAS12 Income Taxes.

3.Capital expenditure is presented gross before taking into account any disposals of property, plant and equipment.

4.Payables to governments includes corporate taxes, government royalties and employer payroll taxes.

5.Our Taxes Paid Report will be published later this year on riotinto.com.

	2023	2022	2021	2020	2019
Community investment1 (discretionary)	84*	62.6	72.1	47.0	36.4
Development contributions2 (non-discretionary)	17.6	18.2	19.1	12.8	12.0
Payment to landowners3 (non-discretionary)	231.9	299.0	222.9	165.9	147.0

*Community investment increased in 2023 attributed largely to Oyu Tolgoi and Rio Tinto Iron Ore.

1.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.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.

Social continued

70 Annual Report on Form 20-F 2023 | riotinto.com

Health, safety and wellbeing

Caring for one another is one of our values –

it is part of who we are and the way we work,

every shift, every day. Nothing is more

important than the health, safety and wellbeing

of our employees, contractors

and communities.

2023 progress

Although there were no fatalities on our

managed sites in 2023, in January 2024,

tragically four team members from our Diavik 

mine in Canada lost their lives when a charter

flight crashed on its way to the mine.

In 2023, we also continued to see fatalities

more broadly across our industry, including six

at our non-managed operations. We firmly

believe all fatalities are preventable. Our focus

remains on identifying, managing and, where

possible, eliminating risks to ensure everyone,

including partners and colleagues at our non-

managed operations, goes home safely every

day.

In 2023, we encountered three permanent

damage injuries; two significant hand injuries

at Diavik and Guinea respectively, and another

at Kennecott Integrated Skarns Project, where

one of our colleagues sustained a leg injury

requiring amputation.

We also experienced three significant process

safety events in 2023; two at Sorel-Tracy in

Quebec, and one at Kennecott in Utah. We

are continuing to find better ways to safely run

our operations and prevent these incidents

from occurring. One example is our newly

developed process safety improvement plan

that aims to continually improve the maturity of

our management system and culture. These

will continue to be implemented globally

through until 2025.

Our all-injury frequency rate (AIFR) was 0.37

in 2023, an improvement from 2022 (2022:

0.40). We continue to see a disparity in safety

performance for employees compared to

contractors, so our focus remains on

improving contractor safety by further

integrating contractors into our safety culture.

Across our operations, we continue to see

serious incidents where people are exposed to

potentially fatal events. The main safety risks

relate to falling objects, falling from heights

and vehicle-related incidents. These risk areas

account for 58% of the total potentially fatal

incidents and remain at the forefront of our

safety maturity efforts.

Critical risk management

Critical risk management (CRM) remains our

primary fatality elimination tool, helping to

ensure critical controls are in place and

working where there is a fatal risk. In 2023, we

initiated a project to help our teams reconnect

with why we have CRM, and to enhance the

quality of verifications which check that the

right critical controls are in place for each task.

In 2024, we will leverage the data we collect to

identify trends, which will help us proactively

intervene before incidents occur.

Vehicles and driving

In 2023, we introduced a program to help our

teams learn critical lessons related to vehicles

and driving, including potential gaps in

vehicles and driving critical controls,

and developing effective strategies to

address these.

We also focused on deepening our

understanding of mass transport risks,

facilitating self-assessments at our sites to

identify compliance with our Group procedure.

We will undertake a similar exercise to better

understand our aviation-related risk profile in

2024.

Safety maturity model

We acknowledge the importance of leadership

and strong processes in driving a sustained

improvement to our safety performance and

safety culture. This is evident in the

implementation of our safety maturity model

(SMM). Introduced in 2019, the SMM is our

blueprint for safety, integrating best practices in

leadership, engagement, learning, risk

management and work planning, as well as

operational ownership of health and

environmental risks. In 2023, we continued to

work closely with our assets to evaluate and

evolve their safety maturity, and foster both

physical and psychological safety. Through this

work, we have refined our assessor training

program, placing a higher emphasis on elements

such as mindsets, behaviours and felt

experiences towards our safety maturity efforts.

This supports our belief that all employees and

contractors should feel empowered to work

safely, speak up and make decisions that

prioritise their wellbeing. While we acknowledge

cultural transformation is a long-term journey, we

draw encouragement from the outcomes of the

SMM assessments conducted in 2023. These

have significantly deepened our understanding of

the safety culture at each site and support

actionable insights which will guide us towards

creating an even safer work environment.

Demonstrating leadership of

maritime safety and crew welfare

As the first initiative of its kind for the

dry bulk industry, we launched the

Designated Owners and Operators

Program. It provides us and our

shipping value chain partners, including

shipowners and operators, a structured

platform to work together on improving

maritime safety and crew welfare

standards. Although we have not had

any fatalities across our owned vessels

since the formation of Rio Tinto Marine

in 1989, over the past four years,

seven seafarers have tragically lost

their lives on chartered vessels. As part

of the program, our partners commit to

improving everyday practices to

prevent fatalities and injuries, and

improve crew welfare. So far we have

onboarded 16 owners/operators,

representing around 36% of our

shipped volumes.

Mental health and wellbeing

Mental health is a core part of our safety culture.

We have a responsibility to support the wellbeing

of our people, beyond the traditional areas of

health and safety, and we are committed to

creating a work environment that is free from

psychological harm.

Our employees’ mental health can be impacted

by psychosocial hazards at work, so we continue

to strengthen our psychosocial risk management.

To support an environment where everyone feels

safe, respected and included, we are progressing

all 26 recommendations from the Everyday

Respect Report. This focuses on training leaders

in building psychological safety and becoming

upstanders, rectifying any unsafe facilities and

building plans to make our facilities more

inclusive, and providing a more people-centric

response to support those impacted by harmful

behaviours and disrespect. In 2023, 83.5% of our

employees completed the “Building Everyday

Respect” employee learning module, a critical

step towards changing our culture, building trust

and supporting the psychological safety of our

colleagues.

To better support people impacted by bullying,

harassment, sexual harm, racism and

discrimination, we introduced Care Hub in late

2023. Care Hub facilitates access to a range

of wellbeing pathways and informal non-

investigative resolution options to help people

navigate routes for healing, recovery, support

and resolution, as is aligned to the

recommendations from the Everyday Respect

Report. For more information about Care Hub,

see page 77.

In 2023, we continued our work to help leaders

recognise psychosocial hazards; assess the

risks; and implement, evaluate and monitor

effective controls, just as for any other health or

safety risk. The practices support ISO 45003 and

the World Health Organisation’s mental health

report. We also continued embedding our mental

health framework to raise awareness of mental

wellbeing, reduce stigma and increase the

capacity of our leaders to recognise and support

individuals experiencing mental ill-health.

Aligned with our commitment to provide our

employees the tools and skills they need to

support their mental health, we continue to

provide and promote the employee assistance

program (EAP), our mental health toolkit and our

global Peer Support Program, which includes

more than 1,600 peer supporters globally. We

also support our people through our domestic

violence support programs, which cover 100% of

employees. Importantly, we continued to support

global mental health campaigns such as R U

OK? Day and World Mental Health Day. In

October 2023, we held our mental health week to

support mental wellbeing and encourage our

people to look out for one another. We ran a

program of activities that included a

comprehensive communications toolkit, packed

with vital information and resources for holistic

wellbeing. Our people, from graduates to the

Executive Committee, shared powerful stories

and commitments to mental health in a series of

impactful videos.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 71

We also hosted a number of engaging

regional calls addressing related wellbeing

topics which have contributed to shaping a

culture that prioritises mental wellbeing and

breaking down stigmas.

In 2023, we challenged ourselves on the role

we can play in preventing suicide. This work

involved understanding how we can work

together as a business, improve identification

of those individuals who may be at risk, and

support our people and families impacted by

deaths from suicide.

We continue to be an active member of the

Minerals Council of Australia (MCA)

Psychosocial Risk Management Working

Group, chaired by MCA and industry partners,

to improve the understanding and

management of psychosocial risk within

our industry.

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.

Occupational health

In 2023, we recorded a higher number of new

occupational health illnesses compared to the

previous year, with 98 (2022: 70), in line with

our increased focus on medical assessments.

These assessments are a key requirement in

ensuring and maintaining our employees’

fitness for work, addressing legislative

requirements and managing risk profiles. We

continue to standardise and simplify these

assessments to help improve our health

performance.

We also ran two workshops for our global

health and hygiene practitioners to share

learnings, best practice and recent

technology developments in the Southern and

Northern hemisphere. We completed

occupational and industrial hygiene monitoring

at all of our operational and managed assets.

This included analysis of noise, airborne

particulates, gas and other contaminants that

can lead to adverse health effects for our

employees and contractors. This helped us to

better understand our exposure profile and

prioritise actions to put effective controls in

place.

In 2023, we commenced a project to improve

clarity and accessibility of data collected

through annual surveys. This project will

continue in 2024 and beyond, allowing better

internal reporting of health and industrial

hygiene risks at a Group level, and individually

for each product group. Health monitoring

remains a pivotal focus, involving the redesign

of fit-for-purpose medical assessments.

The data collected over 2023 allowed for

semi-quantitative assessments of risk and

identified areas where we can implement or

enhance control measures. Each product

group worked on identifying projects within

their assets which, with the support of the

Health Area of Expertise, will be designed,

developed and implemented to reduce

exposures for our employees and contractors.

We will continue to track exposure reduction

projects across product groups in 2024.

Recognising the need to improve the

transparency and detail of our health data, we

performed a Group internal audit in 2022. We

are continuing to implement the audit

recommendations by working to improve the

reporting of our data. These recommendations

include reviewing gaps in guidance, updating

our existing guidance to address these gaps,

re-training our health practitioners and

improving the available consolidated reports to

enable further insights.

We also made improvements to our annual

corporate reporting activity to ensure data

collected and reported is relevant to both

internal and external stakeholders.

This transparently shares our health, safety,

environment, security and communities

performance over a longer period of time, and

builds our environmental, social and

governance (ESG) credentials.

Health, safety, environment and

security transformation

The health, safety, environment and security

(HSES) transformation program has simplified

the way we work and provided access to

trusted and timely data, ultimately making our

business safer. Following three successful

pilots in EnablonTM in 2022 - a new digital tool

helping us to integrate HSES data and

processes into a single platform - global

deployment of the core EnablonTM modules

started in 2023. Today, more than 70% of the

business is using EnablonTM, and the final

wave of deployment will be completed in early

2024.

We also deployed 11 EnablonTM environment

modules across all Saguenay–Lac-St-Jean

sites in Quebec, Canada in 2023.

Work continues to expand the capabilities of

EnablonTM to support processes such as

management of change, in-field safety tools

and chemical management, which will drive

simplification and standardisation across

the Group.

Safety and health performance

	2023	2022	2021	2020	2019
Fatalities at managed operations	0	0	0	0	0
All-injury frequency rate (per 200,000 hours worked)	0.37	0.40	0.40	0.37	0.42
Number of lost-time injuries	236	225	216	187	227
Lost-time injury frequency rate (per 200,000 hours worked)	0.23	0.25	0.25	0.22	0.27
Safety maturity model score1	5.2	4.7	5.7	5.4	4.5
Rate of new cases of occupational illness (per 10,000 employees)2	19.2	15.1	15.2	16.8	20.7
Number of employees3	57000	54,000	49,000	47,500	46,000
Fines and prosecutions – safety ($’000)4	330.0	339.0	646.2	25.4	40.7
Fines and prosecutions – health ($’000)5	0.9	0.0	5.0	0.0	1.4

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 (NCOI) = number of all new cases of occupational illnesses x 10,000/number of employees (based on average monthly statistics).

3.These figures include the Group’s share of joint ventures and associates (rounded).

4.In 2023, we paid safety fines resulting from non-compliances identified during MSHA inspections at our Boron and Owens Lake operations, California, US, and Kennecott Copper and Bingham

Canyon mines, Utah, US.

5.In 2023, we paid health fines resulting from non-compliances identified during the inspections conducted by the Health Authorities at our Oyu Tolgoi mine in Mongolia.

Contributing causes for newly reported illness cases (employees)

	2023	2022	2021	2020	2019
Noise induced hearing loss	28	20	16	23	34
Musculoskeletal disorders	46	32	32	29	29
Mental stress	4	5	1	2	2
Others	20	13	15	14	16

Note: There can be one or more illness reported for each employee/contractor.

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72 Annual Report on Form 20-F 2023 | riotinto.com

Talent, diversity and inclusion

We are finding better waysTM to live our values

and build an environment of trust where

everyone feels safe, respected and

empowered. This is how we attract and retain

world-class talent to our operations globally.

Our people have access to outstanding

development opportunities allowing them to

build skills and capabilities to support them in

their role, many that are transferable within

and beyond our industry.

2023 progress

Listening to our people

More than 39,000 employees responded to our

most recent survey in October 2023, and our

employee satisfaction score (eSAT) increased to

74 (from 73 in 2022). Of particular note was the

positive progress we are making on key

indicators aligned with everyday respect:

authenticity (75), belonging (71), inclusion (69)

and speaking up (74). We have more to do and

will continue to focus on accountability and

increasing collaboration inside and outside of our

business.

Supporting an inclusive culture

In 2023, we continued our work to support an

inclusive culture by implementing the

recommendations outlined in the Everyday

Respect Report. Our focus has been on: 

–promoting respect

–investing in leadership development

–creating an inclusive workplace

–increasing support for our people

–ensuring equality through pay equity.

In 2024, we will conduct an independent

Everyday Respect progress review. We look

forward to reporting on the results and our

progress.

Promoting respect

The physical and psychological health and

safety of our workforce is a priority. In 2023,

83.5% of our employees completed a learning

module on building psychological safety and

becoming an upstander.

We have also introduced the concept of

“Purple Banners” across the business.

Through these updates, we share case

studies of recent instances of harmful

behaviours and disrespect that has happened

in the business. This encourages deeper

discussions about conduct among our teams

and helps increase transparency.

For more information about our work to support employees’ psychological health and safety see the health, safety and wellbeing section on pages 71-72.

Investing in leadership development

In 2023, we held two leadership conferences

to bring our senior leaders together to reflect

on our past, make further progress against our

strategy and look at ways we can shape the

future of our business for the next 150 years.

The keynotes, leader presentations and

discussions with community groups were

underpinned by our values.

We also continue to offer the Voyager

leadership program to all senior leaders to

help them lead authentically with care,

courage and curiosity. This is an immersive

leadership experience that accelerates

personal growth and deepens self-

understanding. This program has now been

completed by 72% of our senior leaders. In

2023, we continued to support and develop

our leaders through the Leading Sustainable

Corporations Programme in partnership with

Oxford University and focusing on developing

leaders as coaches.

In 2023, we have spent time developing,

testing and launching new leadership

programs that will help our leaders create a

safe environment, empower their teams and

perform together.

We are also committed to increasing cultural

knowledge, advancing Indigenous leadership

in our workforce and creating an environment

where everyone feels safe and respected. In

Australia, our Indigenous leadership program

continues to fast-track Indigenous Australians

into professional and leadership roles, helping

us to ensure that we have a stronger

representation of diverse voices across our

business.

For more information about how we are increasing Indigenous leadership in our business see the CSP commitments section on page 69.

Creating an inclusive workplace

The representation of women across all levels

in our business continues to be an important

focus. In 2023, we saw an increase from

22.9% to 24.3% and further increases across

all levels of the organisation, with senior

leaders increasing from 28.3% to 30.1%, and

operations and general support increasing

from 16.2% to 17.7%.

Implementing the Everyday Respect Report

recommendations remains our priority and we

are confident that this will improve both the

attraction and retention of women and other

diverse groups to our business.

For more information about the Everyday Respect initiative see riotinto.com/everydayrespect.

We continued to evolve our award-winning

graduate program in 2023 and recruited our

biggest cohort yet with 298 graduate roles. Of

these, 51.7% in new graduate roles were

women and 37.6% were from communities

where we are building new businesses. In

Australia, 10.6% of the graduate intake (down

from 15% in 2022) and 13.8% of our vacation

student program (up from 2.2% in 2022) were

Indigenous.

In December 2023, we formalised our

ambitions to increase representation of ethnic

minorities setting a global target of 18% ethnic

minority representation within our senior

leadership population (Executive Committee

direct reports) by the end of 2027.

Collecting and monitoring ethnicity data is

challenging in a global context. We have more

work to do in 2024 to ensure that we have an

accurate understanding of both our baseline

and progress against this target. We will report

on the progress and the key programs and

activities we put in place to increase

representation, to ensure our organisation is

welcoming and built to support all of our

people.

Throughout 2023, we have also made it a priority

to address safety and hygiene risks in our

facilities with improvements to security, lighting

and access to well-maintained restrooms and

change rooms. We are performing audits and

making rectifications across all major sites and

offices. We are committed to investing to ensure

that our facilities are safe and meet the needs of

our diverse workforce. To provide a safe and

constructive way for employees and contractors

to raise concerns and give feedback, we have

created new village councils across managed

villages and camps. We now have over 20 village

councils across our camps, and these principles

are also being adopted in some of our office

locations.

We have also established a global network of

Employee Resource Groups (ERGs) to help us

find better ways to elevate diverse voices. These

employee-led groups, each with an Executive

Committee member as a sponsor, bring people

with a shared identity together with their allies to

offer a diverse lens to business challenges and

projects and offer participants career

development opportunities. We have three ERGs

which are LGBTQ+, neurodiversity and gender

equality. We plan to broaden our scope and

launch additional ERGs in 2024.

55,000¹ people

make up our workforce of employees and

contractors, an increase of 5.8% since

2022 (52,000).

9,166 new hires

joined the business in 2023, of which 2,718 were

contractors becoming permanent employees. (2022:

11,062 new hires of which 4,317 were contractors).

24.3% women

in our workforce, an increase of 1.4% since 2022

(22.9%). Workforce breakdown: 13,396 women;

41,660 men; 8 undeclared gender.

62% employees

participated in myShare2, an increase of 3%

(2022: 59%).

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 2023, rounded to

the nearest 1,000.

2.myShare is our global employee share plan.

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Annual Report on Form 20-F 2023 | riotinto.com 73

Increasing support for our people

In 2023, the Business Conduct Office (BCO)

launched Care Hub, our new independent

care unit providing trauma and people-focused

support, practical care and alternative

resolution options to anyone affected by

harmful behaviours. Care Hub currently

supports matters reported through myVoice,

including matters where reporters are referred

to myVoice by Human Resources, our Health,

Safety, Environment and Security function,

leaders, our Peer Support Network, and has

supported over 276 people since launching.

For more information about the BCO, myVoice and Care Hub see page 77.

Ensuring equality through pay equity

Ensuring that employees with similar skills,

knowledge, qualifications, experience and

performance are paid equally for the same or

comparable work is intrinsically linked to our

commitment to inclusion and diversity. We

remain committed to eliminating any residual

pay inequities based on gender or other non-

legitimate dimensions of difference.

Our equal pay gap, the primary lens we use

when assessing gender pay, 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. Our 2023 equal pay gap is less

than 1% in favour of men.

Our gender pay gap is a measure of the

difference between the average earnings of

women and men across the Group (excluding

incentive pay), regardless of role, expressed

as a percentage of men’s earnings. Our 2023

gender pay gap is less than 1% in favour of

women.

For more information about our commitment to pay equity see riotinto.com/payequity.

Workforce data by region(1)(2)

Region	Average employee headcount(3)	Headcount distribution %	Absenteeism(4)	Average contractor headcount(5)	Headcount distribution %
Africa	3,058	6.0%	3.1%	134	2.8%
Americas	16,174	31.9%	0.6%	845	17.7%
Asia	5,834	11.5%	1.2%	137	2.9%
Australia/New Zealand	24,535	48.3%	4.7%	3,594	75.3%
Europe	1,168	2.3%	0.7%	64	1.3%
Total⁶	50,768	100.0%	2.9%	4,773	100.0%

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 2023.

2.Rates have been calculated based on average monthly headcount in the year.

3.Employee headcount excludes Non-Executive Directors, contractors and people not available for work.

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.

Workforce data by category and diversity(1)(2)

Headcount distribution %		Gender(3)					Age Group(4)				Region(4)
		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%	175	407	0	30.1%	69.9%	0.2%	6.4%	44.9%	48.5%	4.5%	26.0%	10.6%	43.8%	15.1%
Managers	8.2%	1,526	3,005	2	33.7%	66.3%	0.5%	25.3%	44.2%	30.0%	5.1%	34.1%	11.3%	43.5%	6.0%
Supervisory and professional	37.2%	6,282	14,173	5	30.7%	69.3%	11.7%	36.7%	30.3%	21.3%	6.4%	24.7%	16.9%	50.0%	2.0%
Operations and general support	52.6%	5,138	23,831	1	17.7%	82.3%	17.8%	28.8%	26.6%	26.8%	6.4%	35.5%	9.1%	47.5%	1.5%
Graduates	0.9%	275	244	0	53.0%	47.0%	84.9%	13.3%	1.8%	—%	5.7%	32.4%	14.6%	46.3%	1.0%
Total	100.0%	13,396	41,660	8	24.3%	75.7%	14.5%	31.1%	29.4%	25.0%	6.3%	31.3%	12.2%	48.0%	2.2%

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 2023.

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 2023, eight (8) individuals' gender was undeclared.

4.Representation by Age and Region includes employees only, excludes contractors.

Employee hiring and turnover rates(1)(2)(3)

		Gender(4)		Age group				Region
	Total	Women	Men	Under 30	30-39	40-49	Over 50	Africa	Americas	Asia	Australia /NZ	Europe
Employee hiring rate(5)(6)	17.6%	35.0%	65.0%	42.8%	30.8%	17.8%	8.6%	7.4%	26.2%	14.2%	49.0%	3.2%
Employee turnover rate(7)	8.4%	8.7%	8.3%	11.1%	7.9%	6.8%	9.5%	5.2%	6.0%	3.8%	11.3%	7.9%

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 2023.

2.Excludes Non-Executive Directors and contractors.

3.Rates have been calculated based on average monthly headcount in the year per category.

4.In 2023, eight (8) 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.

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74 Annual Report on Form 20-F 2023 | riotinto.com

Human rights

Our human rights program is core to delivering

on our business strategy and achieving

impeccable environmental, social and

governance (ESG) credentials.

Commitment

We commit to respecting and supporting the

dignity, wellbeing and human rights of

everyone we interact with. Living up to that

commitment relies on embedding rights-

respecting and ethical behaviour throughout our

business, from how we work with local

communities to how we choose our suppliers

and engage with others in the workplace. We

know that our activities, and those of our

partners, can have both a positive and a negative

impact on human rights. Successfully

embedding Group-wide respect for human

rights relies on our:

–business culture (to establish supportive

mindsets and behaviours aligned with

our values)

–processes and systems (to integrate and

operationalise human rights due diligence

into management systems)

–engagement with broader society

(to help address root causes of

human rights harm).

For more information about our human rights commitments see our Human Rights Policy.

Progress in 2023

Governance

We continue to evolve our human rights

performance to help prevent our involvement in

adverse human rights impacts. We regularly

review and update internal standards, systems

and processes to integrate human rights due

diligence and promote more responsible and

ethical ways of working.

As part of ongoing assurance of our human

rights program, the Group Internal Audit team

completed its review of risk assessment and

evaluation processes across the Group’s

identified salient issues. The review found that

while risks impacting human rights are being

identified and captured in risk management

systems, broader Group-wide understanding

of risks and human rights consequences is

needed. To help with this, we continue to

develop our Group-wide human rights

controls, with a focus on modern slavery risk

control management.

Salient human rights issues

Aligned with the United Nations Guiding

Principles (UNGPs) on Business and Human

Rights, we identify the priority human rights

issues that could severely impact people

through our activities or business

relationships. These issues 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.

Assets conduct a range of assessments to

enable a more complete understanding of their

risk context so they can prevent and mitigate

human rights risks. In 2023, Richards Bay

Minerals, ISAL, Kennecott, Rincon, Iron Ore

Company of Canada and all Pacific region

operations undertook risk assessments to

review their salient human rights issues. In

addition, 13 assets completed human rights

and tailings assessments as part of the Global

Standard on Tailings Management review. Our

human rights team supported higher risk

assets as they worked towards conducting

human rights impact assessments, with a

focus on QIT Madagascar Minerals,

Simandou, Rincon and Oyu Tolgoi. For assets

in more complex security contexts that involve

private and public security forces, we

continued to undertake security and human

rights assessments. 

For more information about our security and human rights program see our annual VPSHR statement.

Our business relationships

We partner with communities, business

partners and other stakeholders to advance

respect for human rights in line with

international standards and our values.

Our joint venture partners

In 2023, we worked with joint venture partners

to provide human rights technical support and

monitored human rights performance, through

Board and Committee roles for non-managed

operations. Human rights risk assessments

were completed at La Compagnie des

Bauxites de Guinée (CBG) and Sohar

Aluminium, as part of a broader human rights

due diligence program and Aluminium

Stewardship Initiative (ASI) certification. CBG

received its provisional ASI certification in

December 2023.

Suppliers

Using a risk-based approach through our third

party due diligence process, we pre-screen

our potential business partners and complete

desktop human rights reviews. More than

10,000 business partners completed baseline

screening in 2023, and 177 were escalated for

human rights review. We undertook human

rights knowledge shares with 18 strategic

suppliers. 

We expect our suppliers (including

subcontractors) to adhere to our Supplier

Code of Conduct, which includes respecting

human rights. In 2023, we reviewed this code

to further clarify our expectations and align

with best practice, and plan to launch the

updated code in 2024. 

In 2023, we focused due diligence efforts on

higher risk supplier categories, including

logistics and renewables due to operating

contexts and potentially higher risk

workforces. We started a project to review

non-financial, sustainability and human rights

risks in core procurement categories to

further promote transparency and effective risk

management. We expect this work to be

completed in 2024.

For more information about our human rights and modern slavery approach see our annual Modern Slavery Statement.

Grievance and remedy

Effective grievance management can enable

more trusted relationships. Every asset is

required to have a grievance mechanism. In

2023, we updated guidance and provided 

training to help teams better align practice with

the UNGPs effectiveness criteria.

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. Receiving feedback, complaints or

grievances from stakeholders is an important

part of our ongoing human rights due diligence

approach. In 2023 the human rights team

provided counsel and support on a range of

internal investigations.

Capacity building on human rights

Everyone has a role in respecting human

rights; our people are our first line of defence.

Our strategy focuses on demystifying,

integrating, operationalising and personalising

respect for human rights.

In 2023, our human rights team delivered 35 

tailored training sessions targeting 11 assets

and 12 functional teams globally. We recorded

2,441 completions of our modern slavery

online learning module. We will launch further

learning initiatives to support our target to train

100% of high-risk human rights roles by the

end of 2024. Our human rights training

records are available in the 2023 Sustainability

Fact Book.

Collaboration

It is crucial that we collaborate with peers, civil

society organisations and others given the

systemic nature of human rights issues. We

identify and embrace initiatives that work to

mitigate the root causes of human rights harm.

We advocate on public policy efforts that help

businesses respect human rights. We

continue to engage with peers, investors, civil

society organisations, workers’ organisations

and business partners on issues relating to

human rights. In 2023 this focus included

multiple industry initiatives including

International Council on Mining and Metals

Human Rights working group, the Human

Rights Resources and Energy Collaborative,

and the Mining Association of Canada’s

International Social Responsibility Committee.

We actively participate in the Voluntary

Principles Initiative and United Nations Global

Compact networks and attend regional

business and human rights forums in Africa,

Asia and Europe.

For more information about how we engaged with our key stakeholders, including civil society organisations see pages 12.

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Annual Report on Form 20-F 2023 | riotinto.com 75

Governance performance We expect our people and partners to uphold the highest standard of integrity, act ethically and do the right thing. The way we treat our people, our partners, the environment, the communities where we work, and how we conduct business is what makes us a responsible partner of choice.  

Transparent,

values-based,

ethical business

2023 progress

Code of Conduct

In early 2023, we launched The Way We Work, our

updated Code of Conduct, which is available at

riotinto.com/ethics. It is designed to help all

employees and contractors live our values of care,

courage and curiosity, and is a a central tool in

reshaping our culture. The values, commitments

and behaviours set out in  our Code of Conduct

provide clarity which allows us to deliver responsibly.

It is broader in scope than the previous version,

reflecting changes in societal expectations. It also

includes our newly developed ethical decision-

making model to help our people reflect on the

potential impacts decisions may have on the

business and others. An interactive, online version of

the Code of Conduct is also available, including

additional related content, real life examples and

associated training.

Compliance program developments 

Business integrity is core to how we build trust

with our stakeholders and the foundation of our

ability to run our operations. Our Business

Integrity Compliance Program (BICP) is

continuously evolving to align with leading

industry practice, the regulatory landscape and

specific business integrity risks we face across

the countries where we operate. 

During 2023, we delivered several

BICP improvements: 

–We set up a new online disclosures system

for gifts and entertainment from and to third

parties, conflicts of interest and sponsorship

and donations. This increases transparency

and allows us to automate approvals and

workflow.

–We are exposed to reputational, financial

and non-financial risk through our third

parties’ actions. We continued to enhance

our Third-Party Risk Management (TPRM)

framework and hired relevant subject matter

experts in areas such as sanctions and

renewables. Our TPRM Committee meets

regularly to set policy and risk appetite

associated with categories of third-party

risk. We have also started to implement a

new TPRM system to increase automation

and improve risk management by

integrating it with other associated business

processes.

–We completed a fraud risk assessment

across the organisation and reviewed our

controls to prevent and detect fraud risk.

This helps us better understand the root

causes of fraud and improve our response.

–We hired more people in country to support

developing businesses in high-risk

jurisdictions, such as Guinea and Argentina.

–We invested in our Sanctions Compliance

Program to enhance our monitoring of trade

sanctions and increase awareness

of trade sanctions compliance.

25,187 employees

undertook compliance training in 2023

Annual training

Our reputation as a business that operates with

high levels of integrity is dependent on the

actions and decisions we make each day. 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. To help

equip our workforce to navigate uncertain areas

and spot ethical and compliance-related risks,

we implemented a new online training course

focused on ethical decision making through

several interactive, real-life scenarios.  25,187

employees completing online compliance

training in 2023. 

In addition to online training, the Ethics and

Compliance team delivers tailored risk-based

face-to-face training on anti-bribery and

corruption, data privacy, anti-trust and trade

sanctions. A total of 6,359 employees received

face-to-face training in 2023.  We also provide

business integrity training to our third parties on

a risk basis.

Operations Centre in Perth, Australia
76	Annual Report on Form 20-F 2023 |  riotinto.com

myVoice, our confidential

reporting program

We want to create a safe, respectful and

inclusive workplace, with a strong ethical culture,

that reflects our values, and we encourage and

support our people to speak up if they have

concerns about potential misconduct or harmful

behaviour. A strong culture of speaking up, with

protections against reprisal, enables us to identify

and address potential issues early, respond

appropriately, minimise risk and care for our

people and the communities in which

we operate.   

The myVoice program enables confidential and

anonymous reporting, including protected

whistleblower disclosures. myVoice is operated

by the Business Conduct Office (BCO), which

reports to our Chief Legal, Governance and

Corporate Affairs Officer, and provides regular

program insights to the Board and the Group

Ethics and Compliance Committee.  

In 2023, the BCO continued to enhance the

myVoice program by refining our triage and

investigation processes, including a people-

centric, trauma-informed approach. 

Care Hub

In 2023, the BCO launched Care Hub, which

provides additional and more accessible

channels to raise concerns, access wellbeing

support and explore resolution options. Care Hub

provides options to resolve reports of harmful

and disrespectful behaviour via alternative

resolution and early intervention where

appropriate rather than investigation.  Our

support partners facilitate specialised care,

guidance and resolution options for our people

for matters involving racism, sexual harassment

and assault, bullying and harassment or

discrimination. They also support leaders,

Human Resources, respondents and witnesses

to those behaviours. Care Hub is underpinned by

regionally appropriate support services and

resolution options informed by diverse voices

throughout the organisation. 

Since launching, Care Hub has supported

over 276 people, and feedback has been

positive;  people feel safe and supported.

We established a BCO reporting and

governance function to help us capture and

communicate early insights. In 2023, we saw

an increase in the number of concerns raised

through myVoice to 1,613 (2022: 1,459).

The rate of reporting per 1,000 employees

was 29.1 in 2023 (2022: 28.1). Anonymous

reporting in 2023 (40%) remained consistent

with trends in previous year (2022: 38%).

Of the cases investigated by the BCO, 61%

were substantiated in 2023 (2022: 65%). Of

the cases closed in 2023 (for both matters

reported into myVoice in 2023 and prior

periods), the average days to close a case

reduced to 38 days from 52 days in 2022.

Upcoming areas of focus:

–Refine and update the myVoice Procedure

to reflect enhancements to our framework

and processes.

–Continue to expand our data analytics

capability and provide the business with

insights that enable our people to strengthen

processes and culture, locally and globally. 

–Expand the channels of reporting to services

and support available through Care Hub.

–Continue to identify possible barriers

preventing individuals from speaking up.

–Track the increased awareness and impact

of the BCO’s interventions in more depth

through data analytics.

We know there is more work to do to improve

our organisational culture. Each person's

experience of misconduct is unique. We are

committed to holding ourselves accountable

and having controls in place to identify where

our business processes may have created an

opportunity for misconduct to arise. This is

critical to ensuring our people feel safe and

respected in the workplace.

Transparency

Transparency encourages accountability – ours

as well as others’. Being open and 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

provides a better understanding of everyone’s

roles and responsibilities. 

We are recognised as a leader in transparent tax

reporting. We are a founding member of the

Extractive Industry Transparency Initiative (EITI)

and have actively supported EITI’s principles and

global transparency and accountability standards

since 2003. We are also a signatory to the B

Team Responsible Tax Principles.  

Political integrity

We do not favour any political party, group or

individual, or involve ourselves in party political

matters. We prohibit the use of 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, in certain

circumstances, 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, as well as a list of the top

five associations by membership fees paid, on

our website at riotinto.com/

industryassociations. 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. 

Voluntary commitments,

accreditations and memberships 

We take part in a number of global, national

and regional organisations and initiatives that

inform our sustainability approach and

standards, which in turn allows us to 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.

myVoice cases reported by category (% of cases reported)

	2023		2022		2021		2020		2019
Case rate	29.1		28.1		25.7		14.5		15.9
Reports received¹	1,613		1,459		1,246		748		804
	Reports received	Reports substantiated²	Reports received	Reports substantiated	Reports received	Reports substantiated	Reports received	Reports substantiated	Reports received	Reports substantiated
Business integrity	254	48%	211	52%	154	36%	102	51%	134	36%
Personnel	1,196	55%	1,034	65%	819	57%	421	38%	454	31%
Health, safety, environment³	109	61%	120	47%	186	22%	68	35%	52	46%
Communities	4	0%	10	0%	6	0%	25	0%	3	0%
Information security	22	0%	16	67%	18	36%	99	47%	111	81%
Finance	2	50%	1	0%	0	0%	2	68%	5	33%
Other	26	0%	67	33%	63	14%	31	50%	45	0%

1.Includes multiple reports relating to same allegations, where applicable.

2.Based on all cases investigated and closed during 2023, including cases reported in previous years. Where percentages slightly differ from previous annual reports, this can be due to a number

of factors including re-opening of cases, internal reviews or quality assurance processes.

3.Contained community concerns pre-2020 are now split into a separate category.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 77

Our approach to risk Taking risks responsibly is key to delivering our strategy in a way that creates value for our customers, shareholders, employees and partners.

Our risk appetite

Risk appetite is an expression of the acceptable exposure to uncertainties that an organisation is willing to accept in pursuit

of its strategic objectives. Energy transition continues to be core to our strategy to strengthen our resilience and pursue new

growth opportunities and partnerships.

Partnering to advance

decarbonisation efforts

Our targets are to reduce our absolute Scope

1 and 2 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.

We aim to reduce our Scope 3 emissions from

the Iron Ore Company of Canada (IOC) by 50%

by 2035, and increase our marine emissions

intensity reduction target to 50% by 2030.

We expect to invest $5-6 billion in capital to

2030 to deliver our decarbonisation strategy.

Our approach to investment is based on

commercial transactions for available

technologies and attractive economies;

transformational projects that transition

our assets for low carbon; and industry

breakthroughs in hard-to-abate processing.

Developing products and

technologies to create options

for the future

We partner with customers, competitors,

suppliers, technology developers, governments

and universities to tackle the energy transition.

We are committed to support customers with

their intent to reduce carbon emissions from

existing blast furnaces by 20% to 30% by 2035.

We expect to spend around $400 million every

year in research and development on the five

components of our technology road map to

deliver on this: health and safety, lightening our

overall environmental footprint, supporting

growth, decarbonising our business and our

products, and improving productivity.

The full list of climate targets is published in

our Climate Change Report.

Shaping our portfolio to enable the

energy transition

We focus on excelling in development and

being the best operator in commodities

essential for the drive to net zero.

We continue to consider higher-risk

jurisdictions and broadening our

target commodities.

We aim to spend up to $3 billion on growth

capital every year, while maintaining capital

discipline in pursuit of value-accretive

opportunities.

Our determination to be the best operator and

to achieve impeccable environmental, social

and governance (ESG) credentials is

underpinned by our zero tolerance for non-

compliance with our operational procedures,

laws and obligations. These expectations are

outlined in our Group policies, standards and

procedures, which are published on our

website at riotinto.com/policies.

Port Dampier, Australia
78	Annual Report Form 20-F 2023 |  riotinto.com

Our approach to risk management

To protect and create value, we

aim to have the right people at

the right level managing risks. 

Our strategy, values and risk appetite inform

and shape our risk management framework.

We embed risk management at every level of

the organisation to effectively manage threats

and opportunities to our business and host

communities, and our impact on nature.

Our risk management process can be

described as a Plan-Do-Check-Act cycle.

We monitor how well we manage material

risks to our objectives by checking and

verifying the implementation of our response

plans (actions and controls) and our actual

performance against objectives. We enhance

the check-and-verify step by applying the

three lines of defence approach.

Our risk management process

Set strategy, objectives and risk appetite	Risk analysis Identify and evaluate risks to our strategy and objectives	Risk management Implement controls and actions to manage risks within risk appetite	Assurance Check and verify that controls and actions are effective in managing the risks	Communication Communicate current and emerging risks and escalate as appropriate	Improve & embed Build risk capability and culture so active management is embedded in how we run our business
Plan		Do	Check	Act

Rio Tinto has an enterprise-wide risk management information system (RMIS) which includes a set of integrated tools and applications to capture,

manage and communicate material risks to the business. We are currently implementing a program to refresh our three lines of defence as a core

part of the risk management framework, enabled by the development and implementation of a Group Control Library to strengthen the first line and

optimise the second line.

Governance structure supporting our risk management framework

Board and sub-committees
Full Board	Audit & Risk Committee	Sustainability Committee	People & Remuneration Committee

Executive management committees
Risk Management Committee	Ore Reserves Steering Committee	Evaluation & Investment Committee	Ethics & Compliance Committee	Disclosure Committee
Major Hazards Technical Committee	Closure Steering Committee	Safety & Operations Committee	Cyber Security Steering Committee	Financial Risk Management Committee
Operational management committees
Management steering committees providing oversight of risk management in their areas of responsibility

Strategic and portfolio risks	People, partnerships and operational performance risks		Financial and commercial risks
–Resources to Reserves risks –Capital project risks –Technology risks –Portfolio opportunities –Low-carbon transition risks	–People and culture risks –Major hazards risks –Health, safety, environment and security (HSES) risks –Communities and social performance (CSP) risks –Climate change and natural disaster risks	–Cyber risks –Ethics and compliance risks –Third-party risks –Non-managed asset risks –Managed asset risks –Closure risks	–Liquidity risks –Market risks –Credit risks –Tax risks –Disclosure risks

The Board and the Executive Committee oversee our material risks,

and the Audit & Risk Committee monitors the overall effectiveness

of our risk management and internal controls framework. In addition, the

operational management committees of our product groups

and Group functions also oversee risk management in their area of

responsibility, with insights from assurance and compliance activities.

At the front-line operational level, all employees are required and

empowered to own and manage the risks that arise within their

area of responsibility. This governance structure supports our

risk management framework and enables effective management

of material risks.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 79

Emerging risks

Emerging risks are highly uncertain by nature.

Given our diverse portfolio and geographical

footprint, we are exposed to many highly

uncertain, complex and often interrelated

risks. We track leading indicators of emerging

risks and their likely impact on our business,

markets and host communities. Our analysis is

anchored on our global scenarios as outlined

in the Strategy section on page 14.

We have actions in place to minimise the

potential impact of heightened geopolitical

tensions and macroeconomic uncertainty that

could impact our performance. We have put

actions in place to minimise this impact.

This is discussed within material risks 11

and 14 detailed in the following pages. 

Governments have been introducing new

policies to support reindustrialisation,

accelerate decarbonisation and meet societal

expectations. While this could support demand

for materials we produce and provide support

for both new and existing operations, it could

also encourage competition.

The rapid proliferation of Artificial Intelligence

(AI) and advancing technologies is an

emerging area of exposure for the business.

We recognise the significant opportunities and

threats presented by the use of AI for us and

the global economy. Our focus is on further

understanding this evolution and ensuring we

have strong risk management and governance

processes to support its use.

Climate change and the low-carbon transition

continue to provide both opportunity and

threats for us. We closely monitor and assess

the impact of climate change through

scenarios; see page 46-47. We address these

and our current actions under our material

risks 2, 4 and 8. Please refer to the climate

change section on pages 44-58 for further

details. 

Longer-term

viability statement

Context

To deliver our strategy, which is underpinned

by our business model, we must meet our four

strategic objectives. Our strategy and

business model are outlined on pages 8 and 9

respectively.

Our business planning processes include

modelling a series of macroeconomic

scenarios and using various assumptions that

consider internal and external factors. As part

of our robust risk management framework, we

closely track, monitor and mitigate material

risks to our business plan and model.

Viability assessment process and

key assumptions

The assumptions underlying our business plan

and macroeconomic forecast have the

greatest level of certainty for the first three

years. Our longer-term viability assessment

examines the first five years (2024-28) of the

business plan. This allows for a detailed

analysis of the potential impacts of risks

materialising in the first three years and

enables us to further stress test the business

plan for risks materialising towards the end of

the time period, although with less certainty.

Our Directors are therefore able to assess the

Group’s capacity to exercise financial levers

available in both the three-year and five-year

time frames to maintain our viability. 

The risk factors section outlines risks that

could materially affect our performance,

prospects or reputation. For the viability

assessment, we have considered material

risks that could severely impact the Group’s

liquidity and solvency. 

Assessment of viability

The material risks and key assumptions

considered in our longer-term viability

assessment are as follows: 

Material Risk A

Remaining competitive through economic

cycles or shocks

Scenario assumptions: A global financial

crisis takes place in 2024, akin to the one

that took place in 2008, albeit not as

severe, and extends through to the end of

the assessment period. It assumes

commodity prices experience large

negative pricing shocks in 2024, which is

sustained through 2028. 

Material Risk B

Group material major hazard or cyber risk

Scenario assumptions: A singular

catastrophic event occurs, resulting from

a major operational failure or cyber

security breach, such as a tailings and

water storage facility failure, extreme

weather event, or underground or

geotechnical event. It results in multiple

fatalities, cessation of operations and

significant financial impacts. We have

assumed two such events occur within

the assessment period. It relates to

material risks 1 (Preventing fatalities,

permanent disablements, and illness) and

12 (Preventing material business

disruption and data breaches due to cyber

events). 

Material Risk C

Delivery of our growth projects

Scenario assumptions: A risk impacting our

ESG credentials materialises (for example,

material risks 6 (Building trusted

relationships with Indigenous Peoples) and

3 (Building trusted relationships with

communities), impacting our ability to deliver

our growth strategy. 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 damage.

We quantify the expected financial impact of

each risk based on internal macroeconomic

and business analysis, as well as internal and

external benchmarking on similar risks. We

apply a probabilistic approach to quantify risks

and impacts where relevant.  

The first five years of the Group’s business

plan has been stress tested for each risk to

assess the impact on the Group’s longer-term

viability, including whether additional financing

facilities would be required. In addition to

liquidity and solvency, the assessment also

considered other financial performance

metrics as well as dividend payments. These

metrics are subject to robust stress tests.  

The most “severe” scenario, considers the

financial impact of all three risks materialising

at the start of the assessment period, followed

by a second major hazard or cyber event

occurring towards the end of the five-year time

period. Without management action, this

scenario would create both an immediate and

prolonged severe impact, resulting in the

Group’s free cash flow performance over the

assessment period being an estimated outflow

of $6 billion in aggregate.  

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.

Our financial flexibility could  be limited during

the peak of the crisis. The viability of the

Group under all the scenarios tested remained

sound. 

The resilience of the Group’s business model

is largely underpinned by four factors:   

–the competitive position and diversification

of our commodities portfolio 

–the disciplined capital allocation framework

and commitment to prudent financial policy 

–the pay-out shareholder return policy being

based on earnings, and is therefore more

sustainable 

–the focus on achieving impeccable ESG

credentials and therefore strengthening our

social licence, which allows for growth and

maintained 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 five years (until 31 December

2028) 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 four material risks

with long-dated consequences that could 

have a material impact on our viability. 

–Preparing our Iron Ore business to meet the

demand for green steel1.

–Leaving a positive legacy for future

generations, embedding closure

considerations throughout the lifespan of

our assets.

–Minimising our impact on the environments

we work in and  building physical resilience

to changes in those environments,  including

climate change and natural disasters.

–Delivering our growth projects.

The risk factors section provides further details

including current management responses.

1.Produced through low CO2 technologies.

Risk management continued

80 Annual Report on Form 20-F 2023 | riotinto.com

Risk factors

The risk factors outlined in this section reflect the risks that could materially affect, negatively or

positively, our ability to meet our strategic objectives.

A material risk is one or a combination of risks

that emerges due to external or internal

factors. It could be of any nature, and manifest

and escalate from any part of the business as

an opportunity or a threat. Where risks are

material to the Group, they are escalated to

the Risk Management Committee and, as

appropriate, to the Board or its committees.

This requires a strong risk culture, which we

continue to develop and foster.

To ensure we can prioritise our efforts and

resources, we regularly assess our material

risks’ potential consequence and likelihood.

These assessments, and the effectiveness of

our associated controls, reflect management’s

current expectations, forecasts and

assumptions. By definition, they involve

subjective judgements and depend on

changes in our internal and external

environments.

The material risk potential assessments

mapped below are primarily based on our

managed operations. We are exposed to risks

associated with our non-managed joint

ventures which, if they arise, may have

consequences on our reputation or our

financial condition. 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. We do this through

engagement, embedded representatives and

influence, in line with applicable laws. 

The timeframe of our material risks is within

five years unless explicitly stated otherwise. 

We frame our material risks in the context of

our overarching strategic objectives: to be the

best operator; to achieve impeccable ESG

credentials; to excel in development; and to

protect our social licence. These are

summarised in the table below in order of

maximum reasonable consequence, likelihood

and change since 2022.

Current assessment of material risks

As of February 2024

Material risk		Key objective		Oversight
1	Preventing fatalities, permanent disablements, and illness from a major hazard or safety event	l	Best operator	Sustainability  Committee
2	Preparing our Iron Ore business to meet the demand for green steel	l	Best operator	Board
3	Building trusted relationships with communities	l	Social licence	Sustainability Committee
4	Minimising our impact on the environments we work in and building physical resilience to changes in those environments, including climate change and natural disasters	l	Impeccable ESG	Sustainability  Committee
5	Leaving a positive legacy for future generations, embedding closure considerations throughout the lifespan of our assets	l	Social licence	Sustainability  Committee
6	Building trusted relationships with Indigenous Peoples	l	Social licence	Sustainability Committee
7	Delivering on our growth projects	l	Excel in development	Board
8	Achieving our decarbonisation targets competitively	l	Impeccable ESG	Board
9	Conducting our business with integrity, complying with all laws, regulations and obligations	l	Impeccable ESG	Board
10	Transforming our culture, enabling us to live our values	l	Best operator	Board
11	Remaining competitive through economic cycles or shocks	l	Best operator	Audit & Risk Committee
12	Preventing material business disruption and data breaches due to cyber events	l	Best operator	Board
13	Attracting, developing and retaining people with the requisite skills	l	Best operator	People &  Remuneration  Committee
14	Withstanding the impacts of geopolitics on our trade or investments	l	Best operator	Board

1.Free cash flow or business value (NPV)

2.Considering effectiveness of existing controls

Change versus 2022 represents changes in risk evaluation, movements up or down are driven

by changes in consequence or likelihood.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 81

Risk to best operator

strategic objective

Preventing fatalities, permanent disablements,

and illness from a major hazard or safety

event 

Nothing is more important than the safety and wellbeing

of our employees, contractors and communities where we

operate. The mining industry is inherently hazardous,

with the potential to cause illness or injury, damage to the

environment and disruption to communities. Our

objective is first and foremost to have zero fatalities. Our

focus is on identifying, managing and, where possible,

eliminating risks.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Major hazards include process safety, underground mining, slope

geotechnical and tailings management. Failing to effectively manage

these risks could result in a catastrophic event or other long-term

damage. Loss of technical capability at complex operations poses a

significant risk. 

While not considered major hazards, significant risks at our sites include

falling objects, fall from height, and vehicles and driving. These are the

top three causes of potentially fatal incidents (PFIs) which could result

in fatalities in our business. 

Key exposures

Our underground operations such as Oyu Tolgoi, Diavik and Kennecott.

Geotechnical risk at our Kennecott and QIT Madagascar Minerals

(QMM) operations. Mass passenger transportation risks (including

chartered aviation). Process safety at our smelters and refineries. Our

tailings and water storage facilities. 

Risk oversight

The Major Hazards Steering Committee, Risk Management Committee

and Sustainability Committee.

Preparing our Iron Ore business to meet the

demand for green steel

Decarbonisation of iron and steel making may affect the

future relative values of our iron ore products. We have

the opportunity to unlock business value through the

optimisation of our iron ore product strategy, partnering

with technology providers and universities, and

innovating with our customers to position ourselves

favourably for the future demand for green steel.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

The emerging low-carbon iron and steel making technologies require high

grade iron ores, and may not favour low-mid grade ores such as those

found in the Pilbara. This could impact the future competitiveness of our iron

ore portfolio. Decarbonisation of the steel value chain will require the

development and proliferation of economic low-carbon technologies suited

to low-mid grade ores.

This material risk is focused on a medium- to longer-term time horizon.

Key exposures

Pilbara low-mid grade ores.

Risk oversight

The Steel Decarbonisation Steering Committee and the Board.

Risk factors continued

82 Annual Report on Form 20-F 2023 | riotinto.com

Transforming our culture, enabling us to live

our values

Living our values goes to the heart of our Group’s

performance, prospects and reputation. Sharing and

demonstrating our values unlocks opportunities in all that

we do, every day. We are focused on building a culture of

trust, where all our people feel safe, respected and

empowered to be their best selves and help drive change.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Not living our values will lead to production over safety. As societal

expectations change, it is essential that we focus on our commitment to

social licence and our values of care, courage and curiosity. The final

report of the Western Australia Parliamentary Inquiry into Sexual

Harassment in the Mining Industry and our release of the Everyday

Respect Report on the findings from an independent review of our 

workplace culture, both in 2022, highlighted the scale of change

required internally and across the resources sector.

Risk oversight

The Board.

Remaining competitive through economic

cycles or shocks

Our business model depends on our ability to convert

existing resources to reserves available for mining when

required. The viability of our orebodies and business is

most sensitive to commodity economics which is greatly

influenced by macroeconomic and geopolitical

developments. We aim to remain competitive, preserve

resilience and maintain access to funding by having cost-

competitive assets, a diversified commodities portfolio, a

strong balance sheet, prudent financial policies and

strong ESG credentials.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Deteriorating economic and political environment leading to

falling commodity prices (reduced cash flow, limiting profitability), trade

actions (increased tariffs, retaliations and sanctions), and governments’

efforts to exert more control over their natural resources by changing

contractual, regulatory or tax measures. This can impact our key

markets, operations or investments and access to funding.

Orebody health remains challenged with Ore Reserve depletion

driven by expanded production and ongoing resource development

challenges. Failure to secure access and approvals limiting collection of

required orebody knowledge or a material reduction in commodity price

may reduce the volume of existing reserves and the future conversion

of resources to reserves in the required timeframe. 

Risk oversight

The Financial Risk Management Committee, the Risk Management

Committee and the Audit & Risk Committee.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 83

Preventing material business disruption and

data breaches due to cyber events

Manage cybersecurity events to ensure there is no

disruption to our operations that could impact how our

employees work, or data privacy or sensitive information

breach related to customers, contractors or suppliers.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Cyber breaches can arise from malicious external or internal attacks,

but also inadvertently through human error and the inconsistent

application across functions of controls that are not managed by

Information Services and Technology (IS&T). Although the extent

and frequency of cybersecurity threats remains in line with growth

expectations, attacks have been observed to be more destructive in

nature. The ongoing digitisation and transformation of operational

technology environments, and the increasing use of AI to inform and

automate decisions, amplifies the threat of loss of control systems or

hijacking of autonomous functions.

Key exposures

Our greatest exposure continues to be through third parties. There was

one notable breach in 2023 with Go Anywhere, a third party,  where

sensitive Rio Tinto data was exposed. Additionally, the growing reliance

on technology to underpin productivity is increasing the breadth and

magnitude of operational disruption exposures.

Risk oversight

The Cyber Security Steering Committee (CSSC) and the Board.

Attracting, developing and retaining people

with the requisite skills

Our ability to achieve our business strategy depends on

attracting, developing and retaining a wide range of

internal and external skilled and experienced people.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Business interruption or underperformance may arise from a lack

of access to capability. Tight labour markets and entry into new

countries are leading to heightened competition for diverse talent

and critical skills, such as climate, energy, decarbonisation, technical

mining and processing skills, licence to operate, new commodities

and projects. 

Changing societal expectations are placing pressure on our corporate

and employer brand, that is, who we are and what we stand for. Since

the pandemic, people are less inclined to relocate, thus forcing us to

rely on local or national recruitment which reduces the market size for

sourcing talent.

Key exposures

Safety concerns as turnover rate in Process Safety Management (PSM)

roles continue.

Risk oversight

People & Remuneration Committee.

Risk factors continued

84 Annual Report on Form 20-F 2023 | riotinto.com

Withstanding the impacts of geopolitics on

our trade or investments

Geopolitics has the potential to increase trade tensions,

undermining rule-based trading systems. Trade actions

may impact our key markets, operations or investments,

limiting the benefits of being a multinational company

with a global footprint. We continue to build reliance

through diversification and to identify opportunities for

engagement with governments, civil society, industry

associations and international bodies.

Strategic alignment		Change vs 2022
l	Best operator	Stable

Risks (Threats)

Deteriorating economic and political environment leading to falling

commodity prices (reduced cash flow, limiting profitability, reducing reserve

inventory), trade actions (increased tariffs, retaliations, and sanctions), and

governments’ efforts to exert more control over their natural resources by

changing contractual, regulatory or tax measures. This can impact our key

markets, operations or investments. 

Key exposures

A highly uncertain and unstable global macro environment, including

China-US tensions and the indirect impacts of the war in Ukraine and

conflict in the Middle East. The US election in November 2024 may

bring multiple geopolitical and economic uncertainties. 

Risk oversight

The Financial Risk Management Committee, the Risk Management

Committee and the Audit & Risk Committee.

Risk to impeccable ESG

credentials strategic objective

Minimising our impact on the environments

we work in and building physical resilience

to changes in those environments, including

climate change and natural disasters

Producing the materials the world needs means we have

an impact on the environment. Our operations and

projects are inherently hazardous, requiring proactive

management to minimise potential impact to water

resources, air quality or biodiversity in new asset

developments, existing operations and closures. Our

assets, infrastructure, communities and broader value

chains are exposed to the impacts of extreme weather

events, such as drought, flooding, heat waves and fires.

Climate change is expected to impact the frequency,

intensity and likelihood of extreme events.

Strategic alignment		Change vs 2022
l	Impeccable ESG	Increasing

Risks (Threats)

A number of our operations and future development opportunities exist

within, or close to, sensitive biodiverse regions. Our licence to operate

and develop requires us to demonstrate our capability to protect

ecosystems and community health through improved practices and

technological solutions. Natural hazards or extreme weather events can

endanger our employees and communities, damage our assets or

cause significant operational interruption. Longer-dated exposure to

chronic changes in climate is less understood given the inherent

uncertainty in future climate projections. 

Key exposures

Our operations in the Pilbara and Saguenay–Lac-Saint-Jean region,

Simandou and RBM.   

Risk oversight

The Risk Management Committee and the Sustainability Committee. 

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 85

Achieving our decarbonisation

targets competitively

Ensuring our ability to deliver longer-term strategic

objectives, achieve our Scope 1 and 2 targets between

now and 2050 and deliver on our focus area of

impeccable ESG, while balancing the need to invest for

growth, deliver superior shareholder returns and remain

competitive.

Strategic alignment		Change vs 2022
l	Impeccable ESG	Stable

Risks (Threats)

Delays in priority initiatives will threaten our Scope 1 and 2 target

delivery and ability to respond proactively and competitively. A key

uncertainty is our ability to successfully engage (and partner where

appropriate) with governments and other external parties to progress

grid decarbonisation. Furthermore, our 2030 targets include new

technology that is dependent on timely and successful investment in

research and development; for example, hydrogen calcination and

BlueSmeltingTM. 

Following our social and human rights standards during implementation

of decarbonisation projects will be critical to avoid adversely impacting

people and stakeholder relationships. However, this may limit our

available sourcing options and lead to delays in meeting our targets (for

example, solar panel sourcing).

Key exposures

Rio Tinto Aluminium Pacific Operations (Pacific Ops) repowering and

Alumina processing.

Risk oversight

The Risk Management Committee and the Board.

Conducting our business with integrity,

complying with all laws, regulations

and obligations

Our determination to be the best operator and have

impeccable ESG credentials is underpinned by our zero

tolerance for non-compliance with our operational

procedures, laws and our obligations. These expectations

are outlined in our Group policies, standards and

procedures, published on our website at riotinto.com/

policies.

Strategic alignment		Change vs 2022
l	Impeccable ESG	Stable

Risks (Threats)

A serious breach in our operations or in our value chain of anti-

corruption legislation or sanctions, human rights, anti-trust rules, or

inappropriate business conduct, could result in serious harm to people

and significant reputational and financial damage.

Key exposures

Argentina and Guinea.

Risk oversight

The Group Ethics & Compliance Committee and the Board.

Risk factors continued

86 Annual Report on Form 20-F 2023 | riotinto.com

Risk to excel in development

strategic objective

Delivering on our growth projects

Delivering our growth strategy relies on our ability to

develop resources faster and more competitively than

others, while aiming for impeccable ESG credentials, and

on the success of our exploration and acquisition

activities to secure those resources. Developing projects

requires complex multi-year study and execution plans

and carries significant delivery risk. 

Strategic alignment		Change vs 2022
l	Excel in development	Stable

Risks (Threats)

New high-quality deposits are increasingly scarce and those that are

known require advances in processing technology, significant capital

investment or may negatively impact our ESG credentials. Additionally,

as studies and projects progress, they are susceptible to changes in

approvals, societal expectations or changes in underlying commercial or

economic assumptions, which could impact economic viability.

Key exposures

Simandou, Pilbara increasing approval time frames, Oyu Tolgoi

underground expansion, Rincon, Resolution and Jadar.

Risk oversight

The Investment Committee, the Ore Reserves Steering Committee and

the Board.

Risk to social license

strategic objective

Building trusted relationships with communities

If we are not viewed as a trusted partner by communities

and broader society, our performance, future prospects

and reputation will be impacted.

Strategic alignment		Change vs 2022
l	Social licence	Increasing

Risks (Threats)

Our access to land and resources could be impacted if we are not

considered a trusted partner that respects people’s rights, manages

adverse social and environmental impacts and sustainably improves

social and economic outcomes in communities that host our operations.

Other potential issues can include operational disruption, security

incidents, expropriation, export or foreign investment restrictions,

increased government regulation and delays in approvals, which may

threaten the investment proposition, title or carrying value of assets.

Key exposures

Simandou, Richards Bay Minerals (RBM), Resolution, QMM, Oyu Tolgoi

and Jadar.

Risk oversight

The Risk Management Committee and the Sustainability Committee.

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 87

Leaving a positive legacy for future

generations, embedding closure

considerations throughout the lifespan

of our assets

We aspire to leave a positive legacy for future

generations. We do this in partnership with our

stakeholders, embedding closure considerations

throughout the entire lifespan of our assets – in the way

we design, build, run, close and transition them.

Strategic alignment		Change vs 2022
l	Social licence	Increasing

Risks (Threats)

Financial obligations for closure may increase over time due to

stakeholders’ and community expectations, regulation, standards,

technical understanding and techniques. 

Exposures at a closed or legacy asset could impact our reputation, our

licence to operate globally and the cost of closure. The legacy portfolio

continues to retain a level of uncertainty due to the lack of historic

information. We are progressively undertaking studies to determine

options for future management.

Key exposures

Pilbara near-term closures (including Channar), Gove, Argyle, Energy

Resources Australia (ERA) (non-managed), and the Panguna site in

Bougainville (legacy).

Risk oversight

The Closure Steering Committee and the Sustainability Committee.

Building trusted relationships with

Indigenous Peoples

Our relationships with Indigenous Peoples play a material

role in delivering our operational and strategic goals and

in our ability to operate. A breakdown in these critical

relationships may have a significant impact on our

business. We aim to build respectful and enduring

relationships with Indigenous partners and communities,

enabling them to realise their goals and aspirations, and

to create long term shared benefits.

Strategic alignment		Change vs 2022
l	Social licence	Stable

Risks (Threats)

Mining activities may strain relationships with Indigenous Peoples,

particularly where actual or perceived damage of significant cultural

values (cumulative or acute) occurs without consultation and consent.

This may result in loss of trust with Indigenous Peoples, impacting our

social licence to operate.

Key exposures

Resolution, Pilbara and British Columbia.

Risk oversight

The Risk Management Committee and the Sustainability Committee.

Risk factors continued

88 Annual Report on Form 20-F 2023 | riotinto.com

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 2023 financial

statements and notes thereto. The financial statements as included on pages 158-237 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 in accordance with IFRS	2023 $m	20222 $m	20212 $m	2020 $m	2019 $m
Consolidated sales revenue	54,041	55,554	63,495	44,611	43,165
Group operating profit1	14,823	19,933	29,817	16,829	11,466
Profit after tax for the year2	9,953	13,048	22,597	10,400	6,972
Basic earnings for the year per share (US cents)2	620.3	765.0	1,304.7	604.0	491.4
Diluted earnings for the year per share (US cents)2	616.5	760.4	1,296.3	599.8	487.8
Dividends per share
Dividends declared during the year
US cents
–interim	177.0	267.0	376.0	155.0	151.0
–interim special	–	–	185.0	–	61.0
–final	258.0	225.0	417.0	309.0	231.0
–special	–	–	62.0	93.0
UK pence
–interim	137.67	221.63	270.84	119.74	123.32
–interim special	–	–	133.26	–	49.82
–final	203.77	185.35	306.72	221.86	177.47
–special	–	–	45.60	66.77
Australian cents
–interim	260.89	383.70	509.42	216.47	219.08
–interim special	—	–	250.64	—	88.50
–final	392.78	326.49	577.04	397.48	349.74
–special	–	–	85.80	119.63
Dividends paid during the year (US cents)
–ordinary	402.0	684.0	685.0	386.0	331.0
–special	–	62.0	278.0	–	304.0
Weighted average number of shares basic (millions)	1,621.4	1,619.8	1,618.4	1,617.4	1,630.1
Weighted average number of shares diluted (millions)	1,631.5	1,629.6	1,628.9	1,628.6	1,642.1
Share buy-back ($ million)		–	–	208	1,552
Balance sheet data
Total assets	103,549	96,744	102,896	97,390	87,802
Share capital/premium	7,908	7,859	8,097	8,302	7,968
Total equity/net assets2	56,341	52,741	57,113	51,903	45,242
Equity attributable to owners of Rio Tinto2	54,586	50,634	51,947	47,054	40,532

1.Group operating profit or loss includes the effects of charges and reversals resulting from impairments (other than impairments of equity accounted units) and profit and loss on disposals of

interests in businesses. Group operating profit or loss amounts shown above exclude equity accounted operations, finance items, tax and discontinued operations.

2.Comparative information has been restated to reflect the adoption of narrow scope amendments to IAS12 “Income Taxes”.

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

21 February 2024

Strategic report

Annual Report on Form 20-F 2023 | riotinto.com 89

Directors’ report

Governance
Chair’s introduction	91
Board of Directors	92
Executive Committee	94
Our stakeholders – Section 172(1) statement	96
How the Board has considered stakeholders in their decision-making	100
How the Board monitors culture	101
Board activities in 2023	102
Governance framework	103
Evaluating our performance	104
Nominations Committee report	105
Audit & Risk Committee report	107
Sustainability Committee report	111
Remuneration report
Annual statement by the People & Remuneration Committee Chair	113
Remuneration Policy	119
Implementation report	127
Additional statutory disclosure	146
Compliance with governance codes and standards	152

Alma, Canada
90	Annual Report on Form 20-F 2023  |  riotinto.com

Chair’s introduction

Our focus as a Board in 2023 has

been on embedding an empowering

culture and on the delivery of

consistent operational performance

to progress our four key strategic

objectives. Strong corporate

governance is essential to achieving

these goals.

The following pages provide a comprehensive

description of our governance arrangements -

including our overall governance framework, how

we engage with stakeholders, how we

evaluate our own Board effectiveness and

detailed reports on the work of each of

our Board committees. I believe these

arrangements are first class, but we recognise

that effective governance requires constant

adaptation and evolution. We therefore strive

to continuously improve our approach

to optimise how the Board can drive and

support the success of the business, for

the benefit of shareholders and all of our

other stakeholders.

It has been another busy year for the

Board, but in this introduction I would

like to highlight three areas which were an

important part of our focus during 2023,

and into 2024.

Site visits

With the lifting of most remaining COVID-

related travel restrictions in 2023, we were

able to resume Board visits to our operations

and to strategically important countries. Whilst

like many, we adapted well to the pandemic

restrictions with ‘virtual’ Board meetings, there

is simply no substitute for getting on the

ground in person to gain first hand insights

into operations and meet key stakeholders in

person.

In July, we had a remarkable visit to Mongolia.

The Board visited our mining operations at

Oyu Tolgoi and met with employees, partners

and contractors, and members of the local

community. The visit also included important

meetings with our partners in the Mongolian

government and the opportunity to experience

the annual Naadam Festival, showcasing the

nation’s history and cultural roots. 

In September, we held our Board meeting in

Washington, D.C. Given the importance of

the Group's North American business and

strategy and the very significant role that

the United States plays in climate, energy

transition, and geopolitics, the trip included

a program of valuable engagements with US

civil society, business and political leaders.

We had a landmark visit in December, where

we held the first Rio Tinto Board meeting in

China. The visit included a series of

engagements to deepen our relationships with

government, customers, partners and

suppliers. We also celebrated key milestones

such as the 40th anniversary of the opening of

our China Office and the 50th anniversary of

the first shipment of iron ore to China. 

Board composition

As we reported last year, during 2022 we

evaluated the mix of skills and experience on

the Board and concluded that we needed to

refresh our composition, with a particular focus

on mining, operations and projects

experience, renewables and the energy

transition, finance / accounting, and

knowledge of countries or regions of strategic

relevance to the Group.

Over the course of 2023, I am pleased

that we have made significant progress

in this, with the announcement of six new Non-

Executive Directors representing these

skillsets and experience. We have provided

details on the search process for our new

Non-Executive Directors and how they fulfil

these skills requirements in the Nominations

Committee Report on page 106. 

Board evaluation

In the second half of 2023 we had the

three-yearly external, independent evaluation

of Board effectiveness – this is described

further on the following pages.

Overall, the review concluded that the Board

and its Committees were working effectively,

but it also provided some valuable insights on

how we can enhance performance. We

discussed the initial findings in October 2023

and reviewed some detailed suggested

actions in February 2024 that we hope will

help with the ongoing optimisation of our

governance arrangements. 

I believe that these activities, and those

described over the following pages, represent

a solid set of corporate governance

arrangements at Rio Tinto, but also

demonstrate our commitment to continuously

improving them.

Dominic Barton

Chair

21 February 2024

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 91

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 61. Appointed April 2022; Chair from May 2022.
Skills and experience: Dominic spent over 30 years at McKinsey & Company, including nine 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’s leadership team. Dominic believes in the competitive advantage of putting people at the heart of strategy and the role culture change will play in Rio Tinto’s future success. Current external appointments: Chair of LeapFrog Investments and Chancellor of the University of Waterloo.
	Simon Henry Independent Non-Executive Director
MA, FCMA. Age 62. Appointed April 2017.
Skills and experience: Simon has significant experience in global finance, corporate governance, mergers and acquisitions, international relations, and strategy. He draws on over 30 years’ experience at Royal Dutch Shell plc, where he was Chief Financial Officer between 2009 and 2017. Current external appointments: Senior Independent Director of Harbour Energy plc, Adviser to the Board of Oxford Flow Ltd, member of the Board of the Audit Committee Chairs’ Independent Forum, member of the Advisory Board of the Centre for European Reform and Advisory Panel of the Chartered Institute of Management Accountants (CIMA), and trustee of the Cambridge China Development Trust.

	Jakob Stausholm Chief Executive
Ms Economics. Age 55. Appointed Chief Financial Officer September 2018; Chief Executive from January 2021.
Skills and experience: As Chief Executive, Jakob brings strategic and commercial expertise and governance experience. He is committed to rebuilding trust with communities, Traditional Owners and engaging broadly with stakeholders, including governments, partners and other business leaders. He continues to focus on improving operational performance, including through the Safe Production System, creating and progressing value-accretive growth options while remaining disciplined on capital allocation and delivering returns for shareholders. Jakob joined Rio Tinto in 2018 as Chief Financial Officer. He has over 20 years’ experience, primarily in senior finance roles at Maersk Group and Royal Dutch Shell plc, including in capital-intensive, long-cycle businesses, as well as in innovative technology and supply chain optimisation. He was also a Non- Executive Director of Woodside Petroleum and Statoil (now Equinor). Current external appointments: None.
	Kaisa Hietala Independent Non-Executive Director
MPhil, MS. Age 53. Appointed March 2023.
Skills and experience: Kaisa is an experienced executive with a strong track record of helping companies transform the challenges of environmental megatrends into business opportunities and growth. She began her career in upstream oil and gas exploration and, as Executive Vice President of Renewable Products at Neste Corporation, she played a central role in its commercial transformation into the world’s largest and most profitable producer of renewable products. She was formerly a Board member of Kemira Corporation. Current external appointments: Senior Independent Director of Smurfit Kappa Group plc, Non-Executive Director of Exxon Mobil Corporation, Chair of the Board of Tracegrow Ltd and a member of the Supervisory Board of Oulu University.

	Peter Cunningham Chief Financial Officer
BA (Hons), Chartered Accountant (England and Wales). Age 57. Chief Financial Officer from 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. During almost three decades with Rio Tinto, Peter 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.
	Sam Laidlaw Independent Non-Executive Director
MA, MBA. Age 68. Appointed February 2017; Senior Independent Director from May 2019.
Skills and experience: Sam has more than 40 years’ experience of long-cycle, capital- intensive industries in which safety, the low-carbon transition, and stakeholder management are critical. Sam has held a number of senior roles in the energy industry, including as CEO of both Enterprise Oil plc and Centrica plc. He was also a member of the UK Prime Minister’s Business Advisory Group. Current external appointments: Chair of Neptune Energy Group Holdings Ltd, Chair of the National Centre of Universities & Business and Board member of Oxford Saïd Business School.

	Dean Dalla Valle Independent Non-Executive Director
MBA. Age 64. Appointed June 2023.
Skills and experience: Dean brings over four 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 from 2017 to 2021. Current external appointments: Chair of Hysata.
	Susan Lloyd- Hurwitz Independent Non-Executive Director
BA (Hons), MBA (Dist). Age 56. 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. Susan is known for her transformational leadership on cultural change, gender equity, diversity and inclusion, and sustainability, while at the same time delivering financial results. Current external appointments: President of Chief Executive Women, Chair of the Australian National Housing Supply & Affordability Council, Non- Executive Director of Macquarie Group, Member of the Sydney Opera House Trust, Global Board member at leading international business school, INSEAD and Non-Executive Director of Spacecube.

92 Annual Report on Form 20-F 2023 | riotinto.com

Board and Secretary changes Megan Clark stepped down from the Board on 15 December 2023. Steve Allen stepped down as Group Company Secretary on 29 August 2023. Sharon Thorne will join the Board on 1 July 2024.	Past external appointments over the last three years For details of each Director’s previous directorships of other listed companies see the Directors’ report on page 147.	Board committee membership key
			Committee Chair	l	Nominations Committee
		l	Audit & Risk Committee	l	Sustainability Committee
		l	People & Remuneration Committee

	Simon McKeon AO Independent Non-Executive Director
BCom, LLB, FAICD. Age 68. Appointed January 2019; Senior Independent Director, Rio Tinto Limited from September 2020. Designated Non-Executive Director for workforce engagement from January 2021.
Skills and experience: Simon brings insights into sectors, including financial services, for purpose, law and government. He practised as a solicitor before working at Macquarie Group for 30 years, including as Executive Chair of its business in Victoria, Australia. Simon served as Chair of AMP Limited, MYOB Limited, and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and was the first President of the Australian Takeovers Panel. Current external appointments: Chancellor of Monash University, Chair of the Australian Industry Energy Transitions Initiative Steering Group, and Non-Executive Director of National Australia Bank Limited.
	Ngaire Woods CBE Independent Non-Executive Director
BA/LLB, DPhil. Age 61. 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: Vice-Chair of the Governing Council of the Alfred Landecker Foundation and Board member of the Mo Ibrahim Foundation, the Van Leer Foundation, and the Schwarzman Education Foundation. Member of the Conseil d’administration of L’Institut national du service public.

	Martina Merz Independent Non-Executive Director
B.Eng. Age 61. Appointed February 2024.
Skills and experience: Martina brings over 38 years of extensive leadership and operational experience, most recently as CEO of industrial engineering and steel production conglomerate ThyssenKrupp AG. She has held numerous leadership roles, including at Robert Bosch GmbH and at Chassis Brakes International. Martina also has extensive listed company experience and is known for her expertise in the areas of strategy, risk management, legal/compliance and human resources. Current external appointments: Member of the supervisory board at AB Volvo and Siemens Aktiengesellschaft and Member of the Shareholder Council of the Foundation Carl-Zeiss-Stiftung as the owner of Zeiss AG and Schott AG.
	Ben Wyatt Independent Non-Executive Director
LLB, MSc. Age 49. Appointed September 2021.
Skills and experience: Ben had a prolific career in the Western Australian Parliament before retiring in March 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 Ltd, APM Human Services International Limited, Telethon Kids Institute and West Coast Eagles. Member of the Advisory Committee of Australian Capital Equity.

	Jennifer Nason Independent Non-Executive Director
BA, BCom (Hons). Age 63. Appointed March 2020.
Skills and experience: Jennifer has over 37 years of experience in corporate finance and capital markets. She is the Global Chair of Investment Banking at JP Morgan, based in the US, where she sits on the Investment Bank’s Executive Committee. For the past 20 years, she has led the Technology, Media and Telecommunications global client practice. During her time at JP Morgan, she has also worked in the metals and mining sector team in both the US and Australia. Jennifer co-founded and chaired the company’s Investment Banking Women’s Network. Current external appointments: Co-Chair of the American Australian Business Council.
	Andy Hodges Group Company Secretary
Associate of the Chartered Governance Institute UK and Ireland; MBA. Age: 56. Appointed August 2023.
Skills and experience: Andy joined Rio Tinto in 2018 and became Group Company Secretary in 2023. Andy brings with him nearly 20 years of experience in senior company secretarial roles, including as Head of Secretariat at Centrica, Deputy Company Secretary at Anglo American and Assistant Company Secretary at Aviva. Current external appointments: None.

	Joc O’Rourke Independent Non- Executive Director
BSc, EMBA. Age 63. Appointed October 2023.
Skills and experience: Joc has over 35 years of 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 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: Non-Executive Director at the Toro Company and The Weyerhaeuser Company.
	Tim Paine Company Secretary, Rio Tinto Limited
BEc, LLB, FGIA, FCIS. Age 60. 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: Joint Company Secretary for Australia-Japan Innovation Fund and member of the Governance Institute of Australia’s Legislation Review Committee.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 93

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.

	Jakob Stausholm Chief Executive Biography can be found on page 92.
	Peter Cunningham Chief Financial Officer Biography can be found on page 92.
	Mark Davies Chief Technical Officer
Mark was appointed to the Executive Committee in 2020 and became Chief Technical Officer in October 2021. Mark joined Rio Tinto in 1995 as a Senior Mechanical Engineer and has worked in operational and functional leadership roles, including in our Iron and Titanium business unit, Group Risk, and Global Procurement. Mark is responsible for our development teams, including Exploration, Studies and Major Capital Construction, Energy, Climate and Closure teams working to rehabilitate and repurpose mines and facilities at the end of the development cycle. Mark’s remit also includes our technical centres of excellence as well as the Office of the Chief Scientist, which drives our global research and development activities. Mark is our representative on the Champions of Change Coalition, a group of business and community leaders working to achieve a significant and sustainable increase in the representation of women in leadership.

	Bold Baatar Chief Executive, Copper
Bold was appointed Chief Executive, Copper in February 2021. Prior to this, he led the Energy & Minerals product group, a position he had held since 2016. Since joining Rio Tinto in 2013, he has held a number of leadership positions across operations, marine, iron ore sales and marketing, and Copper. Bold brings deep experience across geographies, commodities and markets. A passionate advocate for integrating ESG into decision making across the business landscape, he combines strong commercial and business development expertise with a focus on developing markets and partnerships with our host communities and nations.
	Isabelle Deschamps Chief Legal Officer, Governance & Corporate Affairs
Isabelle joined Rio Tinto in November 2021. She has extensive international experience, most recently as General Counsel of the AkzoNobel Group and a member of its Executive Committee, with responsibility across Legal, Strategy and M&A activities. Prior to this, Isabelle worked at Unilever in the UK and the Netherlands, holding various legal and compliance leadership roles. Alongside leading our global Legal, Communication, and External Affairs teams, Isabelle oversees a range of governance functions, including Company Secretariat, Ethics & Compliance, and the Technical Evaluation group. She champions Everyday Respect and drives our integrated social licence agenda. Isabelle is a pragmatic, transparent leader with a passion for equal opportunities, inclusion and diversity, continuous learning, and driving a culture of integrity.

	Alf Barrios Chief Commercial Officer
Alf was appointed Chief Commercial Officer, Chair for China and Chairman for Japan in 2021. He joined Rio Tinto in 2014 as Chief Executive, Aluminium. Alf has over 30 years of global experience in the resources sector across operations, marketing, trading and business development. The Commercial team is accountable for our sales and marketing, procurement, marine and logistics activities, and creates value and growth across Rio Tinto by working closely with our assets, customers and suppliers. Alf is focused on building industry-leading customer and supplier partnerships to deliver innovation and ESG leadership and create future value for the company.
	Sinead Kaufman Chief Executive, Minerals
Sinead became Chief Executive, Minerals in March 2021. Since Sinead joined Rio Tinto in 1997 as a geologist, she has held senior leadership and operational roles across Aluminium, Copper & Diamonds, Energy & Minerals, and Iron Ore. She joined the Executive Committee in early 2021. Sinead brings strong operational expertise combined with a track record of delivering future- focused sustainability outcomes. Sinead has led the Minerals business to play a central role in driving growth, for example, through the acquisition of the Rincon Lithium Project in Argentina, which supports our battery materials strategy. She is also playing a leading role in many sustainability initiatives to help us reach our decarbonisation ambition.

94 Annual Report on Form 20-F 2023 | riotinto.com

	James Martin Chief People Officer
James joined our Executive Committee as Chief People Officer in April 2021. Prior to this, James was at Egon Zehnder for 21 years. He led a range of global practices and specialised in coaching, talent management and leadership development. Prior to this, he worked in equity research after a career as an air force pilot. James has been supporting our culture evolution, from building a new leadership program, to paving the way to a more inclusive work environment and helping create our new values. His vision is to help unlock more of our potential and to inspire even more of our colleagues to feel the pride in Rio Tinto that many already do.
	Jérôme Pécresse Chief Executive, Aluminium
Jérôme was appointed Chief Executive, Aluminium in October 2023. Prior to joining Rio Tinto, Jérôme was President & CEO of General Electric (GE) Renewable Energy, where he helped define and implement GE’s strategy to support the decarbonisation of the energy sector. He brings a wealth of global experience, primarily in energy, mining, business development and strategy from his previous roles at GE, Alstom and Imerys. Jérôme is committed to the energy transition and is focused on decarbonising our operations while growing our business to support new material needs for the future. Building a strong work culture around diversity and entrepreneurship, and forging partnerships with First Nations and Indigenous Peoples, communities and governments is fundamental to his approach.

	Kellie Parker Chief Executive, Australia
Kellie was appointed Chief Executive, Australia in 2021, after a 20-year career at Rio Tinto. Before this, Kellie was Managing Director, Pacific Operations, Aluminium, a role she took after more than a decade of leadership, safety and operational roles across the Iron Ore and Aluminium businesses. Kellie represents our Australian interests with all stakeholders, and brings her operational experience and community values to listen, respond and set the direction for the business. Kellie also has responsibility for Health, Safety, Environment & Security (HSES) and Communities and Social Performance (CSP). She has a people-centric approach, with a strong commercial background, and she is an advocate for Indigenous Australians.
	Simon Trott Chief Executive, Iron Ore
As Chief Executive – Iron Ore, Simon leads the world’s largest and most innovative integrated bulk commodity producer, achieving exceptional financial performance by finding better ways to provide the materials the world needs.  Drawing on 25 years’ mining industry experience across operating, commercial and business development roles, Simon is driving the Iron Ore business to develop a values-based performance culture and reach its vision to become the most valued resource business. He is focused on building the Iron Ore business we need for the future, by transforming its safe operating performance, leading the field in mine development, building valued partnerships, respecting, trusting and supporting self- determined outcomes for Traditional Owners, as well as positioning for a green future and decarbonising the Pilbara.

Former Executive

Committee members

Ivan Vella resigned from Rio Tinto in 2023 and

ceased to be a member of the Executive

Committee on 13 June 2023. He continued as

Chief Executive, Aluminium until 23 October

2023, when Jérôme Pécresse succeeded him.

Arnaud Soirat stepped down as Chief Operating

Officer on 31 January 2024, ahead of his

retirement from Rio Tinto.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 95

Our stakeholders This 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 workforce, the communities in which we operate, civil society organisations, governments, our investors, our customers, and our suppliers.
		How we engage
	Workforce Engaged people are key to our success.	–Intranet, emails and newsletter updates on subjects such as safety and mental health shares, financial results and Group news. –Twice-yearly people surveys. –myVoice, our confidential reporting program. –Sessions with members of the Board and employees. –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 Mongolia, London, France, Perth and China. For more information about some of these visits, see page 101. –In May 2023, members of the Board met with three employee groups at our Perth office. Two groups included emerging talent, while the third was employees from our Development & Technology team. These sessions allowed Board members and our teams to exchange insights and reflections about the business.
	Communities The communities where we live and work are fundamental to our business – without their support, we cannot operate.	We continue to strengthen our social performance structure, governance approach and processes. We have increased engagement between Indigenous Peoples and our senior operational leaders and teams. Our engagement activities include: –Community liaison teams. –Various meeting formats to reflect local expectations. –myVoice, our confidential whistleblower program, which provides a way for anyone, internal or external, to raise concerns about the Group.	–Executive members regularly meet with Indigenous communities as part of site visits. –Since 2021, we have asked Traditional Owner groups in the Pilbara to share yearly feedback on our progress on some of the commitments we made as part of the Rio Tinto Board Review in 2020 on cultural heritage management. In 2023, six out of ten Pilbara Traditional Owner entities chose to respond. The feedback is presented at riotinto.com/juukangorge.
	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 ESG issues, identify risks and opportunities to collaborate.	–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 2023, we expanded our outreach to CSOs in Argentina, Serbia, Guinea, the US and Canada. –We engage locally, nationally and globally on specific issues related to an operation. –We attend industry forums where CSOs are present to understand the latest trends and expectations 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 strategic issues. –We continue to have issue-specific conversations with CSOs to explore issues in depth and gain detailed insights to inform our approach to each topic. In 2023, these included two sessions on decarbonisation progress, three sessions about the Jadar project, and two sessions about the Resolution Copper project.

96 Annual Report on Form 20-F 2023 | riotinto.com

What was important in 2023	How the Board has taken account of these interests
–Company culture and the Everyday Respect report –Training and career opportunities –Compensation and inflation –Health, safety and wellbeing –Business growth and operational performance –Societal issues	–Simon McKeon, our designated Non-Executive Director for workforce engagement, oversees our program of workforce engagement events. –An engaged and diverse workforce is imperative to the success of the business. The Board reviews the implementation activities and progress of the 26 recommendations of the Everyday Respect report quarterly. For more information about the Everyday Respect initiative and how the Board monitors our culture, see pages 100 and 101. –The health, safety 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. –The Board considers our workforce when making decisions on new ventures, projects and other growth opportunities, and aims to support job opportunities and fair work. For more information about how the Board engages with employees to understand their interests and concerns, see page 101.
–Job creation and procurement opportunities –Land access –Socioeconomic development projects –Environmental management, tailings storage facilities, operational impacts and potential site closures –Security	–The Board oversees and receives regular updates on many projects and the impact they have or will have on communities. Supporting economic opportunities for our host communities and regions is a key priority for us and, in addition to our social investment programs, we strive to employ local people and engage local services. –We have developed the Western Australian Indigenous Participation Strategy, designed to support a more collaborative approach to attracting and developing Indigenous employees. –We have undertaken independent cultural management audits to help us improve our cultural heritage management and performance, and our engagement with Indigenous communities. –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. For more information about our work with communities, see page 66-70.
–Decarbonisation, offsets and Scope 3 –Water management, biodiversity protection and nature-based solutions –Cultural heritage protection, Indigenous economic advancement, community consultation, consent and free, prior and informed consent (FPIC) –EU due diligence regulation –Transparency and anti-corruption –Advocacy on policy	–The Board and its sub-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 extensively with investors on the topic of environment and water. In 2023, we published our transparent water data platform which was well received by CSOs and other stakeholders.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 97

	How we engage
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.	–We provide updates on issues relevant to our industry, either directly or as part of industry associations. –We participate in multi-stakeholder organisations, initiatives and roundtables, such as the  Extractive Industry Transparency Initiative (EITI), and the ICMM. –We have innovative partnerships with governments, such as ELYSIS 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.
Investors Our strategy and long-term success depend on the support of our investors.	–Regular calls, one-on-one meetings and group events, roadshows, presentations and attendance at investor conferences. –Webinars and online Q&A sessions. –Our corporate reporting suite and regular updates on our website and social media. –We held two annual general meetings (AGMs), one in Australia and one in the UK, where institutional and retail investors could engage directly with the Board and management, giving them the opportunity to ask questions and vote on our Remuneration Report.	–In 2023, our Chair, Dominic Barton, met with investors from the UK, the US and Australia to convey how our strategy integrates the net zero transition into our business, including our portfolio, capital investment decisions, and business planning.
Customers The needs of our customers are central to our operational decision-making.	–Our Commercial team engages with customers through direct engagements and via business and industry forums. –We periodically seek feedback from our customers through a customer survey, supplementary to the regular feedback we receive as part of ongoing customer interactions. The next customer survey will be conducted in 2024. Results from these surveys will be shared with the Board.	–Decarbonisation is one of our customers’ biggest challenges. We partner to find innovative solutions to help produce sustainable products that support their net zero ambitions. For example, in 2023 we signed a memorandum of understanding with the BMW Group to deliver low-carbon aluminium, while also enabling a more sustainable and traceable supply chain for aluminium products through our START blockchain technology. –In December 2023, the Board visited China and met with Chinalco, China Baowu and BYD. Board members visited their operations, demonstrating our commitment to continuing to strengthen our partnerships with China.
Suppliers Our suppliers are critical to our ability to run efficient and safe global operations.	–Our Commercial team manages contracts and engages with our suppliers in a range of ways, including regular meetings and site visits, supplier events, local and host community procurement forums, annual awards, and supplier capability development initiatives. –We partner with suppliers to co-develop technologies and applications, such as renewable diesel with Neste and Rolls- Royce.	–We periodically seek feedback from our suppliers through a supplier survey to improve our engagement and to strengthen our partnerships. The next supplier survey will be conducted in 2024. Results from these surveys are shared with the Board.

Our stakeholders continued

98 Annual Report on Form 20-F 2023 | riotinto.com

What was important in 2023	How the Board has taken account of these interests
–Tax and royalty payments –Compliance with laws and regulations –Local employment, procurement, health and safety –ESG issues, decarbonisation opportunities and socioeconomic development projects –Operational environmental management –Transparency and human rights –Industrial policy –New technology –Security	–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. –Board meetings were held in Australia, Mongolia, US and China in 2023, with significant engagement with government stakeholders. –The Board oversees our financial management to ensure we comply with tax obligations and 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.
–Financial and operational performance.  –Our ESG performance, including the impact of climate change and how we are decarbonising our business. –Compliance with laws and regulations.  –Human rights.  –Remuneration policy.	–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 CSO roundtables and some investor events provides a sounding board as we implement our strategy, respond to requisitioned resolutions and develop our reporting.  –The People & Remuneration Committee Chair consulted extensively with shareholders and proxy advisers in 2023 to update them on proposals for the Remuneration Policy which is due for renewal at the 2024 AGMs, taking their feedback into consideration.
–Supply security. –Responsible sourcing and supply. –Transparency in the supply chain. –Human rights. –Compliance with laws and regulations. –Competitive pricing. –Product quality. –Strategic partnerships. –Evidence of ESG traceability. –Participation in responsible mining certification systems.	–The Chief Commercial Officer updates the Board annually on the key priorities and vision for Commercial, its role in supporting the Group strategy, and our customer engagement initiatives. –The Board approved a $700 million1 investment to acquire a 50% equity stake in Giampaolo Group’s wholly-owned Matalco business. For more information on the Board’s decision-making on the investment in Matalco, see page 100.
–Responsible sourcing and supply.  –Transparency in the supply chain.  –Human rights.  –Compliance with laws and regulations. –Competitive pricing. –Performance. –Payment terms. –Strategic partnerships.	–The Chief Commercial Officer provides an annual update to the Board on the Group’s activities with suppliers, including metrics regarding how the Group has supported initiatives aimed at Indigenous groups. –With support from the Board, we facilitated a distribution deal between Wuxi Boton, one of our largest suppliers in China, and the entrepreneurial subsidiary of the Innu communities of Uashat mak Mani-utenam for the resale and after- sales service of industrial conveyors in Quebec, Canada.

1.Subject to closing adjustments.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 99

How the Board has considered stakeholders

in their decision-making

Our Board believes that we can only achieve long-term sustainable success if we consider relevant stakeholders in

our decision-making and ensure that decisions align with our purpose and values. Below are three examples of how

our Board has considered stakeholders in 2023.

Matalco joint venture

The Board reviewed and approved the

acquisition of a 50% stake in Giampaolo

Group’s Matalco business for $700 million1.

The Matalco joint venture will manufacture and

market recycled aluminium products.

Stakeholders impacted

–Communities

–Customers

–Governments

–Investors

–Workforce

Relevance to our objectives

ll

Decision

–We are committed to the low-carbon

transition and providing our customers with

materials enabling their energy transition.

As part of this strategy, a range of

aluminium recycling opportunities were

assessed. It was determined that the

Matalco joint venture met our strategic

objectives and criteria.

–After a rigorous internal approvals process,

including endorsement from our Investment

Committee, the proposal was reviewed and

approved by the Board in May 2023.

–The Board agreed that the proposal would

positively impact our stakeholders,

particularly our customers who are looking

to reduce their carbon footprint with low-

carbon aluminium products.

–The Board also considered the impact on

local communities, as part of its review.

–Delivering on our strategic objectives and

the low-carbon transition is also important to

our investors and workforce.

–The Matalco transaction was finalised

in November 2023 after receiving regulatory

approval.

1.Subject to closing adjustments.

Seawater desalination plant

The Board reviewed and approved the $395

million investment in a seawater desalination

plant in the Pilbara, Western Australia to

support water supply for our coastal

operations and local communities.

Stakeholders impacted

–Communities

–CSOs

–Governments

–Investors

–Suppliers

–Workforce

Relevance to our objectives

lll

Decision

–Ensuring our ports, operations and local

communities have a good water supply is

imperative to our business and license

to operate.

–Ahead of requesting Board approval, the

coastal water supply project went through

formal internal approvals, including

Investment Committee approval. The Board

reviewed and approved the project in May

2023.

–The project's impact on all associated

Traditional Owners and Custodians was top

of mind for the Board.

–The Board were satisfied that the project

benefitted all our stakeholders and achieves

our objective to Excel in Development.

Construction of the plant will create

approximately 300 jobs, and the plant has

the ability for future expansion.

–We continue to work with regulators in

Australia to ensure that all the required

approvals are in place for the project

to proceed.

For more information about how we manage water, see page 59.

Everyday Respect

The Board continued to monitor our progress

against the 26 Everyday Respect

recommendations and our commitment to

strengthen our culture.

Stakeholders impacted

–Communities

–CSOs

–Customers

–Governments

–Investors

–Suppliers

–Workforce

Relevance to our objectives

lll

Decision

–In 2021, we initiated a comprehensive,

independent review of our workplace culture to

better understand, prevent and respond

to harmful behaviours in the workplace.

The Board and Executive Committee fully

endorsed the recommendations set out in the

report in 2022 and have supported all

initiatives that have been implemented so far

to meet the 26 recommendations.

–During 2023, the Board received quarterly

updates on progress against the Everyday

Respect report recommendations.

–The Board considers our culture in all

conversations with our people during site visits

and when visiting offices.

–The Board considers all our stakeholders

when monitoring the implementation of the

Everyday Respect recommendations and how

we are progressing our broader culture

journey, especially our workforce, communities

and our investors.

–To ensure we continue to progress the

Everyday Respect recommendations, the

Board has requested Elizabeth Broderick to

undertake a final independent progress report

in 2024.

For more information about our progress to implement the recommendations from the Everyday Respect Report see riotinto.com/everydayrespect.

Relevance to our four objectives key

l Best operator l Impeccable ESG l Excel in development l Social licence

Our stakeholders continued

100 Annual Report on Form 20-F 2023 | riotinto.com

How the Board monitors culture

One of the Board’s focus areas is to

assess and monitor our culture to

make sure that our policies, practices

and behaviours throughout the

business are aligned with our

purpose, values and strategy.

It is important to the Board that they, together

with the leadership team, collectively set the

right tone from the top, and each Director

aspires to lead by example by living our values

of care, courage and curiosity. Our values

guide behaviour and the way we make

decisions, from small everyday choices to big

strategic decisions.

Since we released the Everyday Respect

report in 2022, the Board has supported

management to make targeted systemic

improvements aimed at eradicating harmful

disrespect including sexual harassment,

bullying and racism. We are committed to the

implementation of the 26 recommendations

listed in the report. In addition, Representation

targets, engagement programs and the

creation of Employee Resource Groups are

now in place.

These initiatives as well as systemic changes

to talent, performance and reward are

key enablers in creating an everyday

respect culture.

For more information about Everyday Respect see riotinto.com/ everydayrespect.

The Board monitors and assesses the culture of

the Group by regularly receiving people updates

from the Executive Committee and management

and engaging directly with employees through

site visits. The Board also receives a quarterly

update on how the 26 recommendations from the

Everyday Respect report are progressing. This,

together with data from the myVoice confidential

whistleblower program, a quarterly update on the

culture journey, the employee engagement

survey, and data on retention, provide the Board

with a comprehensive view of how we are

progressing on our culture journey.

Although there is more to do, we believe that our

work to strengthen our culture has already had

an impact, with employee engagement,

retention and productivity improving in recent

years. As we redefined our culture, we have seen

a natural attrition of people with behaviours not

aligned with our values.

The Board places great importance on employee

engagement and regularly reviews its approach

to engaging with the workforce. Simon McKeon,

in his role as our designated Non-Executive

Director for engagement with the workforce, also

facilitates two-way dialogue between the Board

and wider workforce.

Employee engagement survey 

The Board received and considered reports and

updates from the Chief People Officer on the

results of our twice-yearly People Survey in July

and December, which provided useful insights

into employee sentiment. In considering the

reports, the Board supported a number

of recommendations aimed at improving

communications from senior leadership to the

wider workforce, increasing opportunities for

career growth and learning, and supporting

psychological health and safety.

Western Australia town hall: celebrating 150 years Dominic Barton, Jakob Stausholm, Peter Cunningham and Kellie Parker, Chief Executive, Australia, had the opportunity to celebrate Rio Tinto’s 150 years during a Perth town hall, hosted by Simon Trott, Chief Executive, Iron Ore. More than 2,100 of our people attended the town hall, joining in-person and online. They had the opportunity to ask questions and hear the Board and Executive Committee members’ reflections, who, in turn, gained insight into what is top of mind for our people. 

Site visits

In addition to the regular program of Board

meetings, the Board also visited several sites

and offices in 2023. These visits allow the Board

to observe the operations in action and deepen

their knowledge, while understanding the culture

of the business and how we are progressing

against our People Strategy.

Jakob Stausholm and Jennifer Nason share the

traditional Mongolian beverage "airag" (fermented

mare’s milk).

Oyu Tolgoi, Mongolia

The Board visited Mongolia in July. The Chair

and several Board members met with Prime

Minister Oyun-Erdene and government ministers

and participated in the Mongolian Economic

Forum in Ulaanbaatar, which focused on future

investment opportunities in Mongolia. While in

Ulaanbaatar, the Board experienced the annual

Naadam Festival, which offered a great

demonstration of the nation’s history and cultural

roots.

The Board visited Oyu Tolgoi and had the

opportunity to see the underground block cave

performing well. They were impressed by the

mine’s productivity and the management of

underground health and safety. They also viewed

trials of underground electric vehicles, which form

part of future plans to help decarbonise the mine.

While in Mongolia, Board members also visited a

herder family in the community, shared a

traditional meal, heard the education plans for

their children, and listened to herders’ concerns

about late seasonal rains to provide feed for their

camels.

The visit offered the Board a chance

to deepen their relationships with the

Mongolian Government, observe the culture

and leadership at our site, meet our frontline

leaders, partners and contractors, and

assess whether the business is meeting the

expectations of traditional herders and local

communities in Mongolia.

Le Thoronet, France

Our Chair, Dominic Barton, visited south east

France in October to see our Closure team in

action. Dominic visited the Gardanne alumina

refinery, the closed bauxite mine of Le Thoronet

and the closed bauxite residue disposal area

at St-Cyr. The former bauxite sites have been

fully rehabilitated and are now used by the

community for recreational activities. The visit

provided an opportunity to learn more about our

closure activities, stakeholder engagement and

how we work towards a shared vision for the

environment and community after mining ends.

The visit illustrated both the scale and the variety

of closure activity. Work to close assets and

remediate and repurpose land is critical

to our social licence and impeccable ESG

credentials objectives.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 101

Board activities in 2023

The Board had seven scheduled meetings in

2023. At every Board meeting, the Chief

Executive and Chief Financial Officer report on

the safety, operating, and business

performance of the Group and people, culture

and values.

During the year, 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 ESG

matters, but has delegated responsibility for

certain matters to the Sustainability Committee.

Set out below are some of the specific matters

that the Board considered during the year.

In February, the Board:

–Reviewed and approved the Group's 2022

full year results and final shareholder

returns, which had been considered by the

Audit & Risk Committee.

–Discussed a paper detailing a suggested

approach to succession planning for

Executive Committee positions.

–Approved the Group’s 2023 Annual Plan.

–Approved the 2022 Climate Change Report

and approach to industry associations. 

–Received updates on Business Conduct

Office activities including material

compliance risks, compliance program

developments and effectiveness, and

business integrity myVoice insights.

In April, the Board:

–Received updates on the Group’s 150th

anniversary and associated stakeholder

engagement.

–Discussed a report covering the Group’s

progress on cultural change.

–Discussed Board succession planning.

–Approved two requests for funding to

develop and execute a growth and life

expansion pathway for Kennecott.

–Received an update on progress with the

Oyu Tolgoi project, which included cave

health metrics in relation to panel 0.

–Approved a proposal for the Group

to form a joint venture with Giampaolo

Group, by acquiring a 50% stake in

Giampaolo Group’s Matalco business

for $700 million (subject to

closing adjustments).

In May, the Board:

–Received an in-depth assessment of the

health of the Group’s Ore Reserves and

Mineral Resources, and considered the

trends and emerging risks and opportunities

of our Ore Reserves and Mineral

Resources.

–Reviewed an update on initiatives aimed at

simplifying the business.

–Approved the AP60 96-pot smelter

for expansion for capital expenditure

of $1.1 billion.

–Discussed an update and teach-in on the

Safe Production System deployment

program, reviewing its success, progress,

and impact on the business.

–Reviewed the Jadar project, covering the

country context, resource profile and

mineralogy of the asset, the major elements

of the project scope, and the project

economics and financials.

–Reviewed a technical update regarding the

Kennecott shutdown.

–Considered an update on the Group’s

aluminium business, focusing on progress

on the low-carbon strategy, and potential

opportunities for the business.

–Considered a paper regarding the

Group’s Modern Slavery Statement,

which was approved.

In July, the Board:

–Met in Mongolia and participated in a wide

range of events and engagements with

employees and key stakeholders and

visited the Oyu Tolgoi mine.

–Considered updates on culture, progress on

the Everyday Respect recommendations,

and the second quarter 2023 people survey.

–Reviewed a paper providing an update on

the results of a compliance program

perceptions study, material compliance

issues and risks, and Business Integrity

Compliance Program effectiveness.

–Reviewed and approved the Group’s 2023

half year results statement and interim

shareholder returns, which had been

considered by the Audit & Risk Committee.

–Reviewed and approved funding for the

Rincon lithium project.

In September, the Board:

–Met in Washington D.C. to deepen

understanding of our North American

business and strategy. The trip included a

valuable program of engagements with

stakeholders and business and political

leaders.

–Discussed an update on the status of the

proposed Simandou iron ore project, with

regards to the progress of negotiations, joint

venture partner engagements, and the

status of current capital approvals.

–Approved a request for funding to continue

the feasibility study, progress early works

and long lead procurement for a high-

density ore project at Robe River Iron Ore

Associations Joint Venture’s Cape Lambert.

–Approved a request for funding for

Resolution Copper to advance social

licensing and permitting initiatives,

operations and maintenance, and to close

the feasibility study.

In October, the Board:

–Approved the appointment of Joc O’Rourke

as a Non-Executive Director of Rio Tinto plc

and Rio Tinto Limited.

–Approved funding for sustaining capital for

the Oyu Tolgoi project.

–Reviewed a progress update regarding the

Simandou project.

–Reviewed an update on the Group’s

projects’ performance in 2023, including an

overview of the forward portfolio and

strategic priorities for 2024.

–Considered the Board evaluation results.

–Reviewed the Group’s risk scenarios and

mitigations of those risks.

–Considered and approved the Group’s

Tax Policy.

In December, the Board:

–Met in China, for the first time. This

important visit included a wide range of

engagements with stakeholders, partners

and government, culminating with a

celebratory event for key customers and

suppliers.

–Considered an update on Energy

Resources Australia Ltd’s rehabilitation

of the Ranger Project Area.

–Approved a number of requests for

sustaining capital for projects within

Rio Tinto Iron Ore’s Pilbara operations.

–Reviewed a post divestment review of the

Australian coal business.

–Considered an assessment of the Group’s

material risks, associated controls, and

management responses deployed in 2023.

–Approved the Group’s 2024 Annual Plan.

Strategy and risk

The Board holds dedicated two-day strategy

sessions in May and September each year.

The May discussions concentrate on the

external strategic environment and in

September the focus is on the Group’s

progress and future strategic direction. See

pages 14-19 for details of our strategy.

A high-level summary of the main themes

discussed is below:

May

–The shifting roles and importance of

governments and our customers’ customers

in metals and mining.

–The importance of partnerships.

–How to improve our social licence.

–The need to identify opportunities for the

Group to leverage its expertise in specific

areas of the value chain. 

–How to maintain resilience while

creating value.

September

–Decarbonisation of the business.

–Our people, culture, and performance.

–Our portfolio, diversification, and

growth opportunities.

102 Annual Report on Form 20-F 2023 | riotinto.com

Governance framework

Good governance is about considering the right things, at the right time, with the right

people and insights. We have structured the way the Board works to support that objective,

to strengthen our strategic focus, and to facilitate the support that the Board provides to the

executive team. Here is a summary of the framework.

Board of Directors We are finding better ways to provide the materials the world needs. By doing so efficiently, effectively and sustainably, we aim to create long-term value for all stakeholders. Our purpose is supported by three core values – care, courage and curiosity. The Board is collectively responsible for pursuing this purpose and approves the strategy, budget and plans proposed by the Chief Executive to achieve this objective.
Board Charter See the Board Charter for more information on the role of the Board and the delegation to management.
		For more information see riotinto.com/corporategovernance.

Audit & Risk Committee Helps the Board to 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 Committee Helps the Board determine its composition, and that of its committees. They are regularly reviewed and refreshed, so they are able to operate effectively and have the right mixture of skills, experience and background.	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 a focus on people and culture.	Sustainability Committee Helps the Board oversee the Group’s integrated approach to sustainability and strategies designed to manage health and safety, 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 (available at riotinto.com), and in accordance with the Group’s delegation of authority framework.
See page 107	See page 105	See page 113	See page 111

Executive Committee

The Executive Committee supports the Chief

Executive in the delivery of strategy, annual

plans and commercial objectives, and in

managing the financial and operational

performance of the Group.

The following management committees

support the Chief Executive in the

performance of his duties.

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.

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 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.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 103

Evaluating our performance

We undertake a formal annual

evaluation of the effectiveness

of the Board and, every third

year, we engage a professional

external adviser to carry out an

independent evaluation.

In 2023, we appointed Jan Hall, of business

advisory company No 4, to conduct our

external evaluation. No 4 does not have any

other connection with Rio Tinto, and was

appointed following a formal tender process

overseen by the Chair, Senior Independent

Director, Rio Tinto plc and Group

Company Secretary.

Board review process

The external review comprised observations of

Board and Committee meetings and a series

of interviews with the Board members,

Executive Committee members, the Company

Secretary and certain advisors.

Conclusions of the evaluation

The Directors discussed the initial findings

from the evaluation at the October Board

meeting. The evaluation concluded overall that

the Board and its Committees were working

well, and that the performance of the Chair

and individual directors was effective.

In terms of areas for improvement, it was

agreed to explore ways of creating more time

for in-depth discussion of the most material

matters, to further sharpen the focus on

strategic execution and, to help enable those

improvements, to explore efficiencies related

to the arrangements of the Board including

scheduling, allocation of time and format of the

Board’s materials.

It was agreed that the Chair would lead further

discussion on how to progress these matters

and report back to the Board.

Actions

In February 2024, the Board reviewed a

number of proposed actions to progress

the improvement opportunities identified

by the evaluation. This included a high-level

summary of the most material matters for the

Board to focus on, phased over the short-,

medium- and longer-term of the Group’s

development. This document then informed

the Board forward agenda program,

a schedule of thematic “deep dives” on

material matters, and a revised template

for the Board papers.

The Board recognise that effectiveness

requires continuous improvement, and we

will gather feedback and reiterate these

actions on a regular basis. 

Directors’ attendance at scheduled Board and committee meetings during 20231

	Committee Appointments	Board	Audit & Risk	Nominations	People & Remuneration	Sustainability
Chair and Executive Directors
Dominic Barton2		7/7		3/3	4/5	4/4
Jakob Stausholm		7/7
Peter Cunningham		7/7
Non-Executive Directors
Megan Clark - retired 15 December 20233		7/7		3/3	5/5	4/4
Dean Dalla Valle - joined 1 June 20234		4/4		2/2	1/1	2/2
Simon Henry5		7/7	6/6	2/3
Kaisa Hietala - joined 1 March 2023		6/6		2/2		3/3
Sam Laidlaw6		7/7		3/3	5/5	4/4
Susan Lloyd-Hurwitz - joined 1 June 2023		4/4		2/2	3/3
Simon McKeon		7/7	6/6	3/3	5/5
Jennifer Nason		7/7		3/3	5/5
Joc O’Rourke - joined 25 October 2023		2/2
Ngaire Woods		7/7		3/3	5/5	4/4
Ben Wyatt		7/7	6/6	3/3

1.In addition to the scheduled meetings of the Board and Committees for 2023, in order to attend to urgent matters, one ad hoc meeting of the People & Remuneration Committee and one ad hoc

meeting of the Sustainability Committee were convened. Other than as expressly noted below, these meetings were attended by each member of those committees.

2.Dominic Barton was unable to attend a meeting of the People & Remuneration Committee in October due to meetings with key Rio Tinto customers in South Korea.

3.Megan Clark stepped down as Chair of the Sustainability Committee with effect from 1 October 2023.

4.Dean Dalla Valle became a member of the Sustainability Committee and the People & Remuneration Committee with effect from 1 June 2023 and 1 November 2023 respectively, and became

Chair of the Sustainability Committee with effect from 1 October 2023.

5.Simon Henry was unable to attend a meeting of the Nominations Committee in February due to a medical appointment.

6.Sam Laidlaw was unable to attend an ad hoc meeting of the Sustainability Committee due to the meeting having been convened with short notice, clashing with previously-arranged travel commitments.

Board committee membership key

	Committee Chair		Audit & Risk Committee
	Nominations Committee		People & Remuneration Committee
	Sustainability Committee

104 Annual Report on Form 20-F 2023 | riotinto.com

Nominations Committee report

Our main priority as a Committee in 2023 was on refreshing the Board,

and I am pleased to report that, over the year, we have announced the

appointment of six new Non-Executive Directors.

We welcomed Kaisa Hietala, Susan Lloyd-

Hurwitz, Dean Dalla Valle and Joc O’Rourke to

the Board during the course of 2023 and, in

December, we announced the appointments

of Martina Merz, who joined the Board on

1 February 2024, and Sharon Thorne, who will

join in July 2024.

Megan Clark stepped down as a Non-Executive

Director on 15 December 2023, having served

for nine years on the Board. I would like to

express my sincere thanks to Megan for her

contribution to Rio Tinto. We will greatly miss her

insights and wise counsel.

As we have announced today, Simon McKeon

will step down as a Non-Executive Director

at the conclusion of our annual general

meetings in 2024. I am extremely grateful

to Simon for his invaluable contribution.

On behalf of the Board, I wish him well for

the future.

These changes mark the completion of the latest

phase of refreshing the Board, with the six newly

appointed Non-Executive Directors covering the

key areas of expertise we had identified in our

search criteria.

We have also enhanced the gender diversity of

our Board composition, with four of the six new

Directors being women. Our new Board will

comprise 14 Directors, six of whom (43%) are

women. Our new Board will peak at 14 directors

and then go back to a more optimal size. We

believe it is important to retain the expertise and

experience of our longer-serving Directors during

the transitional period as newer Directors

familiarise themselves with the Group. We also

acknowledge that, for the same reason, we do

not currently comply with the new UK Listing

Rules target that at least one of the senior board

positions (Chair, Chief Executive Officer, Chief

Financial Officer or

Senior Independent Director) should be a

woman. We are committed to achieving that

target and this will be a key consideration for

future appointments to these roles.

Dominic Barton

Nominations Committee Chair

21 February 2024

Refreshing the Board

2023 was a busy and important year in terms

of refreshing the Board. As we set out in the

Annual Report last year, the Nominations

Committee identified a number of areas of

expertise to inform the candidate search and

strengthen the Board’s composition in mining,

operations and projects (preferably former or

current Chief Executives or other senior

leaders), renewables and the energy

transition, financial/accounting, and knowledge

of countries or regions of strategic relevance

to the Group.

During the year, and with the support of

executive search firm, Spencer Stuart, the

Committee oversaw the appointments of six new

Non-Executive Directors who were identified as

providing expertise in these areas.

We continue to work hard to enhance the

diversity of our Board composition. With four

of the six new directors being women, our new

Board will be 43% women (six out of 14

directors). The number of directors from an

ethnic background is one.

The external search diversity of the identified

areas of expertise was as follows:

Mining, operations and projects
38% women	13% ethnic background
Renewables and the energy transition
60% women	9% ethnic background
Finance/accounting
74% women	10% ethnic background

Completed candidate searches within

identified expertise areas, were as follows:

Mining, operations and projects

Dean Dalla Valle and Joc O’Rourke were

appointed to the Board in June 2023

and October 2023, respectively. Dean has four

decades of operational and project

management experience as a senior leader

in the resources and infrastructure sectors and

Joc has more than 25 years’ experience in the

mining and minerals industry, for the last

decade as a Chief Executive. Dean has also

succeeded Megan Clark as Chair of the

Sustainability Committee.

Susan Lloyd-Hurwitz and Martina Merz were

appointed to the Board in June 2023 and

February 2024, respectively. Susan brings

extensive experience in Australia’s built

environment sector, for the last decade as a

Chief Executive. She is known for her

transformational leadership on cultural

change, gender equity, diversity and inclusion,

and sustainability. Martina brings leadership

and operational experience as a former Chief

Executive in industrial engineering and steel

production.

Renewables and the energy transition

Kaisa Hietala was appointed to the board in

March 2023. Kaisa brings a deep understanding

of renewables and sustainability from her

knowledge of the resources industry, as well as

commercial capability.

Finance/accounting

Sharon Thorne will join the Board from

July 2024 and will strengthen the composition

of our Audit & Risk Committee. Sharon is a

Chartered Accountant and spent 36 years with

Deloitte, holding a number of leadership

positions.

For more information about our new Non-Executive Directors, see the Board biographies on pages 92-93.

Nominations Committee members

Dominic Barton (Chair)	Simon McKeon
Megan Clark1	Martina Merz4
Dean Dalla Valle2	Jennifer Nason
Simon Henry	Joc O’Rourke5
Kaisa Hietala3	Ngaire Woods
Sam Laidlaw	Ben Wyatt
Susan Lloyd-Hurwitz2

1.Until retirement from the Board on 15 December 2023.

2.Appointed 1 June 2023.

3.Appointed 1 March 2023.

4.Appointed 1 February 2024.

5.Appointed 25 October 2023.

Length of tenure of

Non-Executive Directors

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 105

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 eight different nationalities (including dual nationalities) on a Board of 14. The Committee engaged Spencer Stuart to support the search for our new Non- Executive Directors. 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. Our key responsibilities The purpose of the Nominations Committee is to review the composition 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 All Non-Executive Directors are currently members of the Nominations Committee. 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 three formal meetings in 2023 and received regular and detailed updates on the status of the various searches, as required. Attendance at the formal meetings is included in the table on page 104. 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 Inclusion and Diversity Policy, which can be found at riotinto.com/policies.	The proportion of women on the Board is currently 36% (five women and nine men) and will be 43% following the commencement of Sharon Thorne’s appointment in July 2024. 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 ESG section on page 43, where we show a breakdown by seniority. The number of Directors who identify themselves as being from an ethnic background is one (Ben Wyatt). For further information on the gender and ethnic diversity of the Board and Executive Committee please see page 153 of the Compliance with governance codes and standards section.
			Progress on diversity is shown in the Talent, diversity and inclusion section on pages 73-74.
	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.			3	5	8
	Chief Financial Officer & audit experience Experience in financial accounting and reporting, corporate finance, internal controls, treasury and associated risk management.			3	2	5
	Mining and broader industrial operations Senior executive experience in a large, global mining or industrial organisation.			1	5	6
	Major projects Experience in developing large-scale, long-cycle capital projects.			5	5	10
	Corporate governance Experience on the Board of a major quoted corporation subject to rigorous corporate governance standards.			1	9	10
	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	9	10
	Relevant country/regional expertise Knowledge of countries or regions of strategic relevance to the Group.			7	1	8
	Downstream customer markets Understanding of value chain development, including consumers, customers and marketing demand drivers.			5	3	8
	ESG Experience of issues associated with environmental and social responsibility, including communities and social performance, government relations, workplace health and safety and stakeholder engagement.			6	6	12
	Energy transition Knowledge and experience of managing climate-related threats and opportunities including climate science, the low-carbon transition and public policy.			8	1	9
	Industrial technology & innovation Experience of nurturing and harnessing research, development and innovation, including digital technology and cybersecurity.			5	2	7
	Mergers and acquisitions & private equity/investing Experience of mergers, acquisitions, disposals, joint ventures, private equity and investing.			7	1	8

Nominations Committee report continued

106 Annual Report on Form 20-F 2023 | riotinto.com

Audit & Risk Committee report

I am pleased to present the Audit & Risk Committee (Committee) report for 2023. During the year, the

Committee continued to oversee the processes in place to monitor the Group’s risk management and

financial reporting. This included reviewing and considering the longer-term viability statement (LTVS)

and ensuring this Annual Report is fair, balanced, and understandable.

The Committee spent much of its time

discussing and overseeing the significant

issues of judgement relating to the financial

statements. In particular, this included

consideration of impairment charges and

reversals, exclusions, closure provisions,

climate change, tax and litigation.

We appraised and monitored the status

of the Group’s internal control of financial

reporting for the Sarbanes-Oxley Act

requirements. We have also overseen the

Group’s systems of internal control and

risk management, including the Group Internal

Audit (GIA) function.

This year, the Committee endorsed a GIA

development program to enhance the teams

quality, agility and speed of plan and

assurance delivery. This sees GIA working

more closely with the business to support and

assure critical activities, and ensure a

prioritised approach to managing

recommendations following audits. It will

simplify processes while maintaining strong

assurance activity. We believe this approach is

appropriate and will encourage cultural

change to support the Group’s objectives. We

also monitored and supported developments

in the risk management function and

processes targeted at a clearer articulation of

the three lines of defence model, in particular

the roles and accountabilities of the first and

second lines.

We continue to closely monitor the developing

regulatory requirements in the three

jurisdictions in which we are listed. Throughout

the year the Committee received updates on

the potential for UK corporate governance

reform. We aim to be a valued contributor to

positive developments in corporate

governance, and to adopt new requirements in

a timely way. I have worked with our team and

through the Audit Committee Chairs’

Independent Form (ACCIF) in formulating

responses to the Financial Reporting Council’s

UK Corporate Governance Code consultation.

Although many of the original proposals have

now been withdrawn, we intend to continue

working towards and developing an Audit and

Assurance Policy, which will show how we

receive assurance over the integrity of our

reporting, including both financial statements

and other components of the Annual Report,

and other external reporting requirements. I

also believe our current LTVS already meets

most of the requirements for the proposed

Resilience statement, and that Rio Tinto will

be well positioned to consider the new

requirement for a Board statement on the

effectiveness of internal controls.

In 2023, the Committee, together with the

Sustainability Committee, also closesly

followed the changing landscape of

environmental, social and governance (ESG)

reporting requirements. In the short term

the new climate-related requirements have

been disclosed on a voluntarily basis. The

Committee will continue to monitor ESG

reporting changes and make necessary

preparations to report against them as

required. I remain concerned about the

multiple emerging frameworks here and the

box ticking approach being taken by some

stakeholders, and will continue to contribute

wherever possible to development of common

global standards within the mining sector.

I would like to take this opportunity to thank

my fellow Committee members for their

continuing diligence, insight and challenge, as

well as our colleagues across the business

who support the work of the Committee.

I hope readers find this report of the

Committee’s work in 2023, set out on the

following pages, informative and interesting.

Simon Henry

Audit & Risk Committee Chair

21 February 2024

Audit & Risk Committee members

Simon Henry (Chair)

Simon McKeon

Ben Wyatt

Membership

The members of the Committee are all

independent Non-Executive Directors, and

their biographies can be found on

pages 92-93. 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) 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. Simon Henry,

the Chair of the Committee, is considered by

the Board to have recent and relevant financial

experience.

Simon Henry has extensive experience in the

natural resources sector. Simon McKeon and

Ben Wyatt have gained experience in the

mining sector by serving on the Board and on

the Committee, 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 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 Simon

Henry 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.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 107

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. We also monitor exclusions made in

deriving alternative (non-GAAP) (Generally

Accepted Accounting Principles) 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 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 2023.

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 six Committee meetings in 2023.

Attendance at these meetings is included in

the table on page 104. The Committee has

met twice to date in 2024.

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 do the Chief Legal

Officer, Governance & Corporate Affairs, and

the Group Company Secretary. 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 2023

Other focus areas in 2023

In addition to the scheduled workload, the

Committee also:

–Received an update, at a joint session with

the Sustainability Committee, on regulatory

reform including potential changes to UK

corporate governance requirements and the

landscape for ESG reporting.

–Discussed an update on the OECD Pillar

One and Two proposals to implement a new

global tax framework involving a

reallocation of taxing rights to market

jurisdictions and application of a 15% global

minimum tax.

–After a robust process, in early 2024

recommended to the Board that the draft

2023 Annual Report should be taken as

whole, fair, balanced and understandable.

–Reviewed the quality and effectiveness of

the Group’s internal control and risk

management systems. 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.

Significant issues relating to financial statements

There were four significant issues considered by the Committee in relation to the financial statements.

Matters considered	Conclusion
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. In the first half of the year impairment triggers were identified at the Gladstone alumina refineries. The Committee considered the key judgements made by management, in particular the valuation sensitivity to the cost of carbon credits. In the second half of the year an impairment reversal trigger was identified at the Simandou iron ore project in Guinea. The key matters discussed with management were the timing of cost capitalisation and the perimeter of previously impaired assets that continue to be relevant to the project development.
Application of the policy for items excluded from 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 items excluded from underlying earnings comprised charges of US$2.1 billion and income of US$0.4 billion. A reconciliation of net earnings to underlying earnings is presented in the Alternative Performance Measures.
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 the significant reforecast of costs in relation to the Ranger mine by Energy Resources of Australia. The Committee reviewed economic assumptions assessed by management, including inflation during the period and supported changes to the discount rate.
Climate change	The Committee received an overview of the work that management is undertaking in relation to climate change and the potential financial reporting implications thereof. The Committee reviewed the climate change summary in the Financial Statements and the impacts of climate change throughout the notes, with particular emphasis on the impact to impairment charges and the related disclosure of sensitivities.

Audit and Risk Committee report continued

108 Annual Report on Form 20-F 2023 | riotinto.com

Climate change-related

financial reporting

The Directors have considered the relevance

of the risks of climate change and transition

risks associated with achieving the goals of

the Paris Agreement 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 where climate

issues are relevant. The Group’s approach to

climate change is supported by strong

governance, processes and capabilities.

Our commodity price forecasts focus on two

core scenarios. They are used to generate a

central reference case for commodity

forecasts and valuations, used pervasively in

our financial processes, including impairment

testing, estimating remaining economic life,

and discounting closure and rehabilitation

provisions, as was the case in the prior year.

There is broad recognition that the pace of

decarbonisation across the global economy is

too slow to limit warming to 1.5°C and that

current climate policies in many countries are

not yet aligned with their stated ambitions.

Consequently, neither of our two core

scenarios, Fragmented Leadership and

Competitive Leadership, is consistent with the

expectation of climate policies required to

accelerate the global transition to meet the

stretch goal of the Paris Agreement. Although

our operational emissions reduction targets

align with the goals of the Paris Agreement,

our two core scenarios do not. Given this, we

also assess our sensitivity, and test the

economic performance of our business

against, the Aspirational Leadership scenario

we have developed that reflects our view of

the global actions required to meet the stretch

goal of the Paris Agreement of limiting

warming to 1.5°C.

Overall, based on our internally developed

pricing outlooks, we do not envisage an

adverse impact of the 1.5°C Paris Agreement-

aligned sensitivity on asset carrying values,

remaining useful life, closure and rehabilitation

provisions for our Group.

During the year, the assessment performed

under the Physical Resilience Programme,

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 our 2023 Climate

Change Report and page 44 in this report.

Contact with regulators during

2023

During the year, the Company received

a letter from the SEC regarding the

Production, Mineral Reserves, Mineral

Resources and Operations disclosures

in our 2022 20-F.

External auditors

Engagement of the external auditors

For the 2023 financial year, KPMG are serving

as our auditors. 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

March 2021 and the Australian partner, Trevor

Hart, was appointed in 2020.

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

Financial Reporting Council’s (FRC) 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.

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 three years. This is in

line with the FRC’s Ethical Standard. Non-

audit assignments fall into two

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 other

services 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 2023

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 regulations.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 109

Fees for audit and non-audit services

The amounts payable to the external auditors,

in each of the past two years, were:

	2023 $m	2022 $m
Audit fees	26.6	25.7
Non-audit service fees:
Assurance services	4.1	3.3
All other fees	0.1	0.3
Total non-audit service fees	4.2	3.6
Non-audit: audit fees (in-year)	16%	14%

For further analysis of these fees, please see

note 38 on page 237.

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.

Independence of the external auditors

No person who served as an officer of

Rio Tinto during 2023 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 June 2023, 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 2022 audit.

Appointment of the auditors

The Committee has reviewed the

independence, objectivity and effectiveness of

KPMG as external auditors in 2023 and in the

year to date. We have recommended to the

Board that KPMG should be retained in this

role for 2024, 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

2024 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 systems

and the risk management framework. We also

monitor risks falling within our remit, especially

those relating to the integrity of financial

reporting. A summary of the business’s

internal control and risk management systems,

and of the risk factors we face, is available in

the Strategic report on pages 78-88.

Importantly, responsibility for operating and

maintaining the internal control environment

and risk management systems sits at asset

level. Leaders of our businesses and functions

are required to confirm annually that adequate

internal controls are in place, 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 systems (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 Officer, Governance &

Corporate Affairs, and the Head of Tax on

material developments in 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 systems. This review

included consideration of our material

financial, operational and compliance controls.

The Board concluded that the Group has an

effective system of risk management and

internal control.

Internal control over financial reporting

The main features of our internal control and

risk management systems in relation to

financial reporting are explained on page 151.

Internal audit program structure

GIA provides independent and objective

assurance of the adequacy and

effectiveness of risk management and internal

control systems. 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.

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.

When needed, the team brings in external

partners to help achieve its goals. 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.

Effectiveness of the internal audit program

The Audit & Risk Committee monitors the

effectiveness of the GIA function throughout

the year, with updates on performance at

every meeting. In 2022, PwC’s assessment of

GIA provided some useful suggestions for

further improvement to mature GIA to “trusted

adviser” level. These suggested improvements

were actioned during 2023 and while the

transformation is ongoing, it will improve the

function’s effectiveness and speed of delivery,

while maintaining strong assurance activity.

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 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.

Committee effectiveness

The Committee reviews its effectiveness

annually. In 2023, this was accomplished

through an externally-facilitated evaluation of

the Board and its committees.

The performance of the Committee was highly

rated, with no areas of concern raised and no

significant changes recommended.

Audit and Risk Committee report continued

110 Annual Report on Form 20-F 2023 | riotinto.com

Sustainability Committee report

The Sustainability Committee supports the long-term strategy of Rio Tinto’s businesses by caring for

our people, overseeing our contribution to the sustainability of the environments and communities in

which we operate, and encouraging the business to find better ways to provide the materials that the

world needs.

I am pleased to present my first report on the

work of the Sustainability Committee, having

been appointed Chair of the Committee in

October 2023.

The Sustainability Committee’s activities

include overseeing Rio Tinto’s policies,

frameworks, and management systems that are

designed to maintain the health and safety of

our employees and contractors, to manage our

key social and environmental risks, to support

the communities in which we operate, and to

respect human rights in our business and value

chains. By maintaining our focus on these

important areas, we are also supporting Rio

Tinto’s social licence to operate.

While we have now experienced five years without

a fatality at our managed operations, tragically four

team members from our Diavik mine in Canada

lost their lives when a charter flight on its way to

the mine crashed in January 2024. This is a stark

reminder that safety hazards still exist in our

operations, and that we must remain eternally

vigilant and committed to managing them. A

critical item on the Committee’s agenda is tracking

our progress in analysing and learning from

incidents that have the potential to result in

Potential Fatal Incidents (PFIs) to prevent similar

incidents from happening across our operations.

In July, we investigated two process safety

incidents that had occurred within six weeks at Rio

Tinto Iron and Titanium Quebec Operations’

reduction plant in Sorel-Tracy, Canada.  We

looked at the root causes of each of these events,

and the work being done to investigate what

further process controls should be implemented.

In 2023, the Group recorded an all-injury

frequency rate of 0.37 – an improvement on the

rate of 0.40 for the prior year. However, three

permanent damage injuries occurred: an operator

injured their hand at our Diavik diamond mine in

Canada; a driller lost four fingers at the Simandou

iron ore project in Guinea; and at our Kennecott

copper operations in Salt Lake City, Utah a

geotechnical engineer required a leg amputation.

We continue to encourage transparent reporting of

PFIs as they occur, and are focusing on the critical

risk areas indicated by these incidents - and in

particular on falling objects, working at heights,

and vehicles and driving. The overall number of

reported PFIs remained broadly consistent with

the prior year’s levels at 103.

In 2023, the Committee undertook deep dives into

selected key safety risks. This included an

assessment of the mass passenger transport risks

across the Group, during which we examined

compliance with our controls, and opportunities for

strengthening those controls.  Other deep dives in

2023 examined process safety risks, and risks

associated with contact with electricity. The

Committee also reviewed the design of the

governance frameworks for health, safety,

security, environment and communities for our

joint venture arrangements at Simandou.

At our April meeting, the product group Chief

Executives and the Chief Commercial Officer

presented to the Committee on the key ESG and

operational risks and trends for each product

group and for Rio Tinto Marine, and the controls

for managing those risks. The Committee noted

the key sustainability risk themes across the

Group, and commended the collaboration across

the Group for managing these risks.

The Committee continues to review the

progress with our safety maturity model (SMM)

program, a key tool for developing and

enhancing our safety culture. In 2023, the

business incorporated a mid-year self-

assessment process in addition to the end of

year independent assessment, and key insights

were provided to the Committee. While no

material changes were made to the SMM in

2023, the Group’s safety maturity is steadily

advancing with an average score in 2023 of 5.2

(out of a scale of 0 to 9), which is an 11%

improvement on the prior year. 

The Committee continued to monitor our progress

towards implementation of the Global Industry

Standard on Tailings Management (GISTM). In

August 2023, in accordance with GISTM Principle

15, we published information on our facilities with

Very High or Extreme consequence

classifications. The Committee also continues to

directly engage with executives having

accountability for the safety of tailings facilities

across the Group, and has received progress

updates from management on the pathway to full

conformance with the GISTM.

The Committee examined the independent

audit of Rio Tinto’s Cultural Heritage

Management program as part of the response

plan to the Rio Tinto Board Review of Cultural

Heritage Management, published August 2020.

It will monitor ongoing actions to advance

Cultural Heritage Management practices

globally. 

The Committee reviewed the progress of Rio

Tinto’s program for managing its physical

resilience to climate change, and for the

Group’s compliance with the disclosure

requirements set out by the Task Force on

Climate-Related Financial Disclosure.

Sustainability risks cannot be considered in

isolation. As part of our governance and oversight

of sustainability as an integrated risk for the

business, the Committee receives annual updates

from our product group Chief Executives on their

integrated strategies for managing sustainability

risks and opportunities. The Committee examined

sustainability risk themes and trends identified for

the Group, including the impact of the Group’s

decarbonisation agenda on sustainability risks,

and the need for an interdisciplinary approach for

the management of increasingly interdependent

sustainability risks.

The Group’s Internal Audit (GIA) function

undertakes reviews and reports to the

Sustainability Committee on matters within the

Committee’s scope. In addition, the Group’s

auditors, KPMG, reported to the Committee on

their assurance procedures over our 2022

sustainable development reporting.

Other key areas of focus for the Committee in

2023 included:

–Human Rights: reviewing management of

human rights risks, tracking global trends in

human rights policy and regulation, and

overseeing our modern slavery reporting.

–Environment and biodiversity: received

reports on all areas of environmental risk

management (excluding decarbonisation and

climate change).

–Water: receiving an update on our progress

against our water stewardship targets.

–Health, Safety, Environment and Security

(HSES) performance: receiving regular

updates on HSES performance.

–Communities and Social Performance (CSP):

receiving a progress update on the Group’s

CSP strategy, including key activities

undertaken in 2023 and a forward-looking

view on priorities for 2024, in support of the

group objectives of Impeccable ESG and

Social Licence.

–Major hazards: receiving updates from

management on the implementation of the

GISTM and implementation of the Group’s

Process Safety Improvement plan 2023-25.

Site visits are an important element of the work

of the Committee, and this year in addition to a

full Board site visit to Oyu Tolgoi in Mongolia,

our Committee members made individual visits

to our Iron Ore operations in the Pilbara,

Western Australia; in the US, our operations at

Resolution Copper in Arizona, and our

Kennecott copper operations in Salt Lake City,

Utah; QIT Madagascar Minerals’ facilities in

Madagascar; our RTIT operations in Suzhou,

China; four Rio Tinto Alcan legacy sites at Le

Thoronet, Gardanne, St-Cyr and Montgrand in

France; and to our Technical Development

Centre in Bundoora, Victoria.

Finally, I would like to thank Megan Clark for

her leadership and guidance as Chair of this

Committee for the past seven years, and her

commitment and generosity of time in assisting

my transition into the role of Chair.

Dean Dalla Valle

Sustainability Committee Chair

21 February 2024

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 111

Sustainability Committee members

Dean Dalla Valle (Chair)1	Sam Laidlaw
Megan Clark2	Ngaire Woods
Dominic Barton	Joc O’Rourke4
Kaisa Hietala3

1.Member of the Committee from 1 June 2023, Chair of the

Committee from 1 October 2023.

2.Chair of the Committee until 30 September 2023, Member

of the Committee until retirement from the Board on 15

December 2023.

3.Member of the Committee from 1 March 2023.

4.Member of the Committee from 1 January 2024.

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/corporate

governance.

Activities in 2023

The Committee met five times in 2023. During

these meetings, the Committee undertook the

following activities:

Health and safety

–Received updates on the Group’s

performance across key health and

safety metrics.

–Conducted regular reviews of PFIs

occurring across the Group.

–Conducted deep dives into key safety risks

and controls, including process safety risk,

mass passenger transport risks, and major

tailings and water storage facility failure.

Environment

–Reviewed the Group’s performance across

key environmental metrics.

–Received an update on progress against

the Group’s 2019 to 2023 water stewardship

targets.

–Conducted a deep dive into the Group’s

physical resilience to climate change and 

compliance with the TCFD disclosure

requirements.

–Received updates on the Group’s

implementation of the GISTM, and engaged

with Accountable Executives in line with the

Standard’s requirements.

Communities and social performance

–Received a progress update on the Group’s

CSP strategy.

–Received a report from the Chair of the

Australian Advisory Group, an advisory

forum to provide a broad perspective on

emerging developments and specific

policies or initiatives that could impact our

business in Australia.

–Received a report on an independent audit

of the Group’s cultural heritage

management performance.

–Reviewed progress on development

of the Group’s 2022 Modern Slavery

Statement.

Assurance, risk management

and global sustainability trends

–Approved the external assurance plan for

the Group’s sustainability reporting, and for

the performance data supporting the safety

and environmental, social and governance

(ESG) performance outcomes under the

short-term incentive plan.

–Received presentations on the key

sustainability risks and trends for each

product group and for Rio Tinto Marine.

These were presented by product group

Chief Executives and the Chief Commercial

Officer (for Rio Tinto Marine).

–Received reports from GIA on their audits

relating to matters within the Committee’s

scope, including:

–The Group’s closure control framework.

–The water management control

frameworks at Boron in California, and at

Oyu Tolgoi.

–Progress on implementation of the

recommendations in the Everyday

Respect Report.

–Management of environmental

compliance at Gudai-Darri in the Pilbara.

–Caustic release risk management

processes at the Yarwun Alumina

Refinery in Queensland.

–Rio Tinto Iron Ore’s engagement and

interaction with Traditional Owners.

–Community and government obligations

at Diavik in Canada.

–Major slope geotechnical hazard risks,

including at Iron Ore Company of Canada

and at Kennecott.

–Major underground safety risks, including

at Kennecott and Diavik.

–Mass transportation risks at Winu in

Western Australia and at our Rincon

lithium project in Argentina.

–The design of the health, safety, security,

environment and communities joint

venture governance arrangements

at Simandou.

–Reviewed recommendations for the Group’s

2024 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 2023 Annual Report.

–Received an update, in a joint session with

the Audit & Risk Committee, on the global

governance and ESG reporting landscape,

Rio Tinto’s proposed approach to meet

relevant evolving requirements, and the

work underway in preparation for doing so.

Other (including closure and security)

–Received an update on the Group’s closure

strategy and work program.

–Received regular updates on security

issues across the Group and key insights

on risk assessments and controls.

The chart below represents the allocation of

the Committee’s meeting time during 2023:

n	Health and safety
n	Environment, including tailings management, water, and biodiversity
n	Assurance, risk management, global sustainability trends
n	Communities and social performance (including cultural heritage and human rights)
n	Governance and disclosure
n	Other (including closure and remediation, and security)

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 approach to ESG is described in detail on pages 40-77.
	For more information and to access our 2023 Sustainability Fact Book see riotinto.com/sustainability.
	Our 2023 Climate Change Report can be found at riotinto.com/climatereport.
	Our 2022 Communities and Social Performance Commitments Disclosure can be found at riotinto.com/cspreport.
	Our 2022 Modern Slavery Statement can be found at riotinto.com/modernslavery.

Sustainability Committee report continued

112 Annual Report on Form 20-F 2023 | riotinto.com

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

present our 2023 Directors’

Remuneration report.

Nothing is more important than the health,

safety and wellbeing of our people. While

we had zero fatalities at our managed

operations in 2023, tragically four colleagues

died in a plane crash while travelling to our

Diavik mine in January 2024.

2023 was another year of solid operational

performance. While the external environment

remains volatile and challenging, the

fundamentals of our business enable us to

continue delivering strong financial results. We

have a very resilient business with strong free

cashflows underpinned by the quality of our

assets, our people and strength of our balance

sheet. It allows us to systemically address

short term issues and build sustainable

growth.

Our operational performance has been

accompanied by progress towards our

strategic objectives of “impeccable

environment, social and governance (ESG)”,

“becoming the best operator”, “excelling in

development” and “strengthening our social

licence”. This has seen us accelerate our

decarbonisation strategy, improve our culture,

safely improve and stabilise production, and

diversify in materials enabling the global

energy transition.

The resilience of our business has allowed us

to continue to invest in 2023. We announced

an investment of $1.1 billion to expand our

AP60 aluminium smelter in Canada with low-

carbon technology. We entered into joint

ventures during the year, with First Quantum

Minerals at the La Granja copper project in

Peru, and with the Giampaolo Group through

which Rio Tinto acquired a 50% stake in

Matalco, to recycle aluminium products

throughout the US and Canada. Good

progress was made with our ELYSISTM

technology which has the potential to

transformatively decarbonise the way we

produce aluminium.

We continued to develop our existing portfolio,

particularly at Oyu Tolgoi where we saw the first

underground production in the first quarter of

2023, and at the world-class Simandou iron ore

project in Guinea, where key infrastructure

agreements were concluded during the year.

A pre-feasibility study to progress development of

the Rhodes Ridge project, one of the best

undeveloped iron ore deposits in Western

Australia, was approved at the end of the year.

Overview of performance

and strategic progress in

2023

Short-term incentive plan

In 2023, we implemented our new Short-term

incentive plan (STIP) scorecard which has

collective goals at its core. Half of the

scorecard for 2023 was based on financial

measures of underlying earnings and STIP

free cash flow (flexed and unflexed), with the

flexed outcome measuring our progress

towards “best operator”. Outcomes against the

other half of the scorecard are linked to

strategic goals of “impeccable ESG” covering

safety performance, carbon reduction, and

diversity and inclusion, “progress on excel in

development”, and “strengthening our licence

to operate”. An individual multiplier is in place

to be used sparingly in cases of exceptional or

underperformance. The STIP scorecard

applies consistently across 26,000 eligible

employees including the Executive

Committee.

The Committee has assessed Group

performance against the STIP scorecard

and determined the overall outcome is 56%

of maximum.

For the financial component of the STIP

scorecard, we reported underlying earnings of

$10.9 billion and free cash flow of $10.8

billion. This is against a backdrop of higher

than planned iron ore and copper prices.

Operationally, we achieved slightly lower than

expected production, reflecting equipment

failures, extended downtime and safety-

related disruptions. We also had a build in our

working capital in 2023, impacting our cash

flow performance. Overall, our reported 2023

financial results were above plan, albeit below

target on a flexed basis, resulting in an

outcome of 45% of maximum.

The strategic component of the STIP scorecard

includes four separate measures. Progress has

been made in each area resulting in an overall

outcome of 67% of maximum. The outcome

against our “impeccable ESG” measure, which

includes safety, was above target for the year.

2023 was a fatality-free year, but we regrettably

recorded three permanent damage injuries

(PDIs) at our sites in Diavik, Guinea and

Kennecott. We continue to believe all incidents

and injuries are preventable and we remain

focused on identifying, managing and, where

possible, eliminating risks. As a result of these

PDIs, the result for the all-injury frequency rate

component has been capped at 50%

of maximum.

Progress on decarbonisation and the approval

of specific abatement projects accelerated

over the year as we continued to shape our

roadmap to our 2030 ambition. During the

year, we critically reviewed our project

portfolio, leading to project commitments

equivalent to a 1.9Mt reduction in our

expected 2030 emissions.

Our people and culture measures include a

gender diversity element and while we added

1,456 women to the workforce the outcome

was below the stretching target set for 2023,

with room for improvement in 2024. The

delivery of our everyday respect learning

reached more than 34,000 employees in 2023,

which is above our outstanding range.

Overall performance against the “excel in

development” measure was above target for

the year, reflecting exciting progress in

exploration and studies, and continued strong

delivery across several projects despite some

challenges during the year.

The social licence measure provides an

indication of how we are perceived by our

community of stakeholders. In 2023, our

global reputation score remained broadly

consistent with our 2022 baseline, resulting in

a target outcome.

The Committee did not apply the individual

multiplier for either of the Executive Directors

but it has been selectively applied to some

Executive Committee members. Further

details on each component of the STIP

scorecard outcomes, the individual

performance and STIP outcomes for the

Executive Directors can be found on pages

129-132.

Long-term incentive plan

The performance period for the 2019

Performance Share Award (PSA) concluded in

December 2023 and awards will vest on 22

February 2024. The vesting outcome of the

2019 PSA is 94.1% based on our total

shareholder return (TSR) of 103.4% over this

five-year cycle. This level of TSR performance

compares favourably against our mining peers

and broader global corporates. The Committee

considered the vesting outcome in the context of

underlying business performance and the

consequence management framework, and was

satisfied the outcome was fair and representative

of the shareholder experience.

Remuneration Policy

In accordance with the triennial policy cycle,

we will be submitting our 2024 Remuneration

Policy (the new Policy) to shareholders for

their approval at our 2024 annual general

meetings (AGMs). Changes being made to our

Remuneration Policy (the current Policy) are

summarised on page 115 with a full version of

the new Policy on pages 119-126.

The Committee fully understands stakeholder

expectations that the remuneration of

executives should be linked to balanced

financial and non‑financial performance

outcomes, appropriately governed and aligned

with delivery against our strategy, supported

by sustainable long‑term value creation.

With these elements in mind, the Committee

has undertaken a comprehensive review of

our current Policy with primary considerations

including:

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 113

–Competitive advantage: Responding to

climate change is critical to our long-term

competitive advantage and value creation.

There can be an inherent tension between

decarbonisation goals and short- to

medium-term financial performance. Our

intent is to balance this appropriately in how

we structure our long-term and short-term

incentives. Given the inherent uncertainty,

we believe three-year targets are most

appropriate for measuring progress against

our decarbonisation goals.

–The global talent market: Rio Tinto competes

for the best talent with the world’s largest

companies. We need to be competitive to

retain and secure the talent required to

execute our strategic ambitions.

–Simplify focus for our global team:

Over the last decade, the complexity of our

business has increased, placing greater

demands on our leaders. Clear, collective

targets that build alignment will reinforce the

STIP changes we made last year and help

our leaders maintain focus on the most

critical objectives. 

I met with many of our shareholders and the key

UK and Australian advisory bodies to discuss our

proposals. I would like to thank those who took

part in this consultation.

While views inevitably vary across the

stakeholder group, I was pleased to find a

sizeable majority of those we met were broadly

supportive of the key changes. Following this

consultation, the Committee further refined and

adapted the proposals in response to feedback.

The main changes proposed to our current Policy

relate predominantly to the structure of future

long-term incentive plan (LTIP) awards.

As part of the 2021 Policy renewal, the maximum

LTIP award level was reduced

from 438% to 400% of base salary, while the on-

target STIP for the Chief Executive was also

reduced from 120% to 100% of base salary.

These reductions have impacted our market

positioning relative to peers in the talent market.

Given the scale of our strategic ambition and

our important role in global decarbonisation, it

is vital we secure and retain the talent required

to achieve our goals. Our senior executives

remain highly attractive to competitors and

despite this competition for talent, the

Committee is seeking to maintain a measured

approach to pay. US-style pay practices

continue to be materially higher than in other

jurisdictions and we are not seeking to match

these award levels in our new Policy. Instead,

we have focused on ensuring executives are

aligned with similarly sized and globally

complex FTSE 10 companies and mining

peers.

The Committee proposes future LTIP awards

to Executive Directors and other Executive

Committee members are capped at 500% of

base salary. This would position award levels

closer to FTSE 10 peers where the median

LTIP maximum award is in excess of 500% of

salary, yet still materially below US pay levels.

Shareholder alignment will also be enhanced

via increased shareholding requirements.

The additional LTIP increment will be directly

linked to the achievement of our value accretive

climate change strategy. Given the scale and

complexity of Rio Tinto’s emissions portfolio,

our decarbonisation ambitions and the

multi-year timeframe for this transition, we are

proposing a balanced scorecard approach

with four equally weighted elements. This will

include input and outcome metrics that

incentivise long-term value creation and

sustained medium-term performance across

multiple performance cycles. Both the

scorecard and relative TSR will be measured

over three years and awards will be subject to

a further two-year holding period. This means

that executives will continue to only realise

value from awards after five years, consistent

with the previous structure. The application of

leaver and recovery provisions (malus and

clawback) will remain unchanged.  This time

horizon is consistent with mainstream FTSE

practices in the UK, where just under 80% of

the Group’s shares are listed and is also

aligned with the UK Corporate Governance

Code. While practice on the length of

performance periods is more mixed in

Australia, the overall time horizon of five years

remains towards the upper-end of broader

ASX practice. 

Ultimately the Committee concluded that a

three-year performance period was more

appropriate as it enables the setting of more

robust and tangible targets for the

decarbonisation scorecard where immediate

action is required but long-term visibility is

limited. It also provides flexibility to cascade

the plan to less senior participants on more

consistent terms. Relative TSR performance

will be measured over the same period for

simplicity.  Extensive modelling demonstrated

that the change in TSR performance did not

create a material difference in outcomes.

Overall we continue to have a remuneration

structure that is more heavily weighted to long-

term incentives than many of our peers. 

Further details are set out on pages 134-135.

The Committee recognises the progress of our

decarbonisation strategy will need to be

closely monitored to inform how we set our

targets and assess performance under this

part of the LTIP award. To support this, the

Committee will ensure input is obtained from

subject matter experts within the business and

other Board committees. We also commit to

providing enhanced disclosure and

independent verification so shareholders

can fully understand the basis of any awards

vesting. 80% of our LTIP will be driven

by relative TSR to align with the interests

of shareholders.

The Committee strongly believes our

proposals will ensure our executive

remuneration arrangements incentivise the

delivery of our ambitious strategy with a

balanced focus on the short- and long-term.

This will also align our reward outcomes with

Group performance and shareholder

experience. I will continue to proactively

engage with shareholders on this subject.

Implementation for 2024

During 2023, the Committee considered

extensive benchmarking as part of our new

Policy, which shaped our remuneration decisions

for 2024. In the shareholder consultations we

illustrated material gaps which the Policy

changes are aimed at reducing. 

The STIP structure introduced in 2023 will be

broadly maintained for 2024; however the financial

metrics have been refined by replacing earnings

with underlying earnings before interest, taxes,

depreciation, and amortisation (EBITDA). This is a

key measure of our underlying financial

performance and is well understood by both

internal and external stakeholders.

Executive changes

We welcomed Jérôme Pécresse to the role of

Chief Executive Aluminium in October 2023. 

Jérôme was appointed on terms consistent

with our current Policy, and details of his terms

are included on page 138.

In June 2023, Ivan Vella resigned from his role as

Chief Executive Aluminium, stepping down from

the Executive Committee. Ivan was due to leave

Rio Tinto in December 2023; however his

employment was terminated on 15 November

2023 for actions that did not follow Rio Tinto’s

requirements for the acceptable management of

confidential information. The Committee is

continuing to review this matter and will apply the

consequence management framework as part of

its review.

People

From 2023, the remit of the Committee increased

to include talent, capability, and diversity and

culture, reflecting the ever-increasing importance

of these areas and our commitment to building a

more inclusive culture.

During the year, we worked with the Executive

Committee to set the direction and tone for a

workplace culture that aligns with our purpose,

reflects our values, and supports the delivery of

our strategy. To that end, we supported the

implementation of a new performance

management framework that places as much

emphasis on how results are delivered as it does

on what is achieved. This further builds on our

decision to change the STIP scorecard to apply

consistently across 26,000 colleagues.

The Committee monitored culture progression

through visits to our sites and offices, operational

deep-dives, and management presentations,

considering trends and findings from our biannual

engagement survey, succession and talent plans

for our most senior roles as well as our ability to

attract and retain a diverse workforce. The overall

representation of women in our business remains

a key aspect of our broader agenda on diversity

and inclusion and will continue to be an area of

focus in 2024.

Pay in the broader context

Our focus on pay equity is evident in our

gender pay metrics. We have made progress

toward eradicating any equal pay and gender

pay gap. Further details on equal pay, gender

pay gap, and a wider discussion on diversity

and inclusion, are provided in the ESG section

of this report on pages 73-74.

As always, I welcome shareholder feedback

and comments on our 2023 Directors’

Remuneration report.

Yours sincerely,

Sam Laidlaw

People & Remuneration Committee Chair

21 February 2024

Remuneration report continued

114 Annual Report on Form 20-F 2023 | riotinto.com

Remuneration at a glance - Policy changes

Our current Policy was approved by shareholders at our 2021 AGMs and has served us well. The changes for the 2024 Policy reflect the need to

ensure strategic alignment and remuneration competitiveness.

Element	2021 Policy summary	Proposed changes for 2024 and implementation
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, and any increase is normally aligned with the wider workforce, with a maximum individual annual increase of 5% plus Consumer Price Index (CPI). –An individual increase may be higher in specific circumstances, such as promotion, increased responsibilities or market competitiveness.	–Remove the cap on individual salary increases to better align with market practice where the use of salary caps is uncommon and to ensure the Policy provides sufficient flexibility where appropriate. –It is intended that salary increases remain in line with the wider workforce, and for any additional increases to continue to be in specific circumstances. –For 2024, salaries for the Executive Directors will be increased by 4% which aligns with the increase for UK employees. Salaries as at 1 March 2024 will be: –Chief Executive - £1,285k –Chief Financial Officer - £761k
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.	–No change.
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.	–No change.
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. –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. –Normally, 50% of the STIP is delivered in cash and the balance is delivered in shares that are deferred for three 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.	–Replace the earnings-based measure with EBITDA, half of which is adjusted for commodity prices in the same way as the current earnings measure.
LTIP	–Performance is measured against TSR relative to the EMIX Global Mining Index and to the MSCI World Index. –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 400% 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. –Malus, clawback and suspension provisions apply to LTIP awards.	–Opportunity increased from 400% to 500% of base salary with the additional 100% of base salary linked to tangible decarbonisation targets. –Performance period reduced from five to three years, followed by a holding period of two years. –Following the decommissioning of the EMIX Global Mining Index in 2023, our TSR will be measured against the S&P Global Mining Index and the MSCI World Index. –Clawback provisions updated to comply with SEC requirements.
Shareholding requirements	–Over a five-year period, executives should reach a share ownership in Rio Tinto shares equivalent in value to: –Chief Executive: 400% of base salary. –Other executives: 300% of base salary. –Longer periods may be accepted for new appointments. –Executive Directors are required to retain a holding for two years after leaving the Group in line with the shareholding requirements.	–Requirement for all executives increased by 100% of base salary. –Requirement expressed as a fixed number of Rio Tinto shares, calibrated based on the existing requirement after applying the 100% increase of base salary to shareholding requirements. –Fixed number of shares subject to review every two years.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 115

When remuneration is delivered under current Policy

The following chart provides a timeline of when remuneration is delivered, using 2023 as an example.

	Year 1 2023		Year 2 2024		Year 3 2025	Year 4 2026	Year 5 2027	Year 6 2028
Base salary	Salary
Benefits	Benefits, pension, etc.
STIP	2023 performance year			50% cash	50% deferred shares (BDA)
LTIP (PSA)		Five-year performance period					Vests February 2028
Performance period starts		March PSA grant		March STIP cash + BDA grant		December BDA vest	December Performance period ends	February PSA vest

When remuneration is delivered under proposed 2024 Policy

The following chart provides a timeline of when remuneration is delivered under the proposed new Policy.

	Year 1 2024		Year 2 2025		Year 3 2026	Year 4 2027	Year 5 2028	Year 6 2029
Base salary	Salary
Benefits	Benefits, pension, etc.
STIP	2024 performance year			50% cash	50% deferred shares (BDA)
LTIP (PSA)	Three-year performance period					Two-year holding period	Released February 2029
Performance period starts		March PSA grant		March STIP cash + BDA grant	December Performance period ends	December BDA vest		February PSA released

How are performance metrics for incentives aligned with the strategy?

In 2022, we moved to a much simpler STIP design, where the approximately 26,000 employees that participate in the STIP have one Group

scorecard rather than the diversified scorecards previously used. The metrics in the STIP design were chosen to drive the implementation of our

strategy and are based around our areas of focus: our four objectives together with the delivery of strong financial performance and accelerating our

culture change.

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.  For many years, LTIP awards have been primarily based on relative TSR performance

against both sector peers and the wider market. For 2024, alongside TSR, we are introducing a scorecard linked to the Group’s long-term

decarbonisation agenda. We are aware of our responsibility in this area and the positive impact of decarbonisation. Given the scale and complexity

of our emissions portfolio, a balanced scorecard approach has been developed that focuses on input and outcome metrics.

	Incentive	Reflection in scorecard
Strategic priorities
People and culture	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.
Excel in development	STIP	Measures progress in relation to exploration, studies and project execution.
Impeccable ESG	STIP / LTIP	Safety in all its aspects remains a key priority alongside progressing the work on our decarbonisation pathways towards achieving our 2030 ambition. The new decarbonisation scorecard in the LTIP is structured around our multi-year and ambitious decarbonisation strategy, with a focus on a combination of offensive and defensive metrics to incentivise long-term competitive advantage.
Social licence	STIP	Measures our progress in building trust and meaningful relationships with our community of stakeholders.
Best operator – flexed financials	STIP	Focuses on achievement of financial plan commitments.
Shareholder experience
Unflexed financials	STIP	Aligned to market conditions for our commodities.
Total shareholder return	LTIP	Measures performance relative to sector peers and wider market.

Remuneration report continued

116 Annual Report on Form 20-F 2023 | riotinto.com

+

People & Remuneration Committee Chair Q&A

How does the new Policy support Rio Tinto’s strategy?	Have the changes made to STIP last year been effective?
We have a clear strategy to build a stronger business by focusing on four objectives, which will help improve our productivity, reduce capital intensity and assist us in becoming a partner of choice for a range of stakeholders globally. Although our existing framework remains broadly fit for purpose, the Committee has identified a number of refinements to better align remuneration with these strategic priorities, including an increased focus on decarbonisation. The Committee is also proposing a range of simplifications to ensure our remuneration arrangements are appropriate and allow us to be competitive in the global talent market.	In 2022, we undertook a detailed review of incentives which resulted in the introduction of a much simpler STIP design for the approximately 26,000 employees that participate in the STIP, with clearer alignment to our strategy. The STIP targets help to make our goals relevant to day-to- day actions, and the level of engagement from participants over the past year has been encouraging.  For 2024, we are maintaining this design and are taking the opportunity to refine the financial metrics by replacing the current earnings measure with EBITDA. This is a key measure of our underlying financial performance that is less subject to adjustment and well understood by both internal and external stakeholders.
How do incentives support Rio Tinto’s low-carbon transition agenda?	Why aren’t you including Scope 3 emissions?
Climate change and the low-carbon transition are at the heart of our strategy. The Committee recognises the importance of including ESG metrics in our incentives, alongside a continued focus on operational and financial performance to deliver long-term shareholder returns. Impeccable ESG is a significant part of our STIP scorecard, with an increased focus on achieving our decarbonisation ambitions while maintaining a material focus on continued safety performance. In recognition of the long-term nature of the carbon journey, the Committee believes now is the right time to introduce decarbonisation metrics into the long- term incentives, by linking the additional PSA opportunity to the execution of our value accretive climate change strategy.	Measuring and incentivising Scope 3 emissions is inevitably challenging. These emissions are primarily from our customers in Asia, processing our iron ore into steel, and bauxite into aluminium, so our level of control is limited. The best way to tackle these emissions is to work in partnerships to develop the technologies needed to produce low-carbon metals and minerals. While Scope 3 emissions are not within our direct control and are not specifically measured under the incentive schemes, the breadth of the decarbonisation scorecard for the PSA, particularly the focus on transition strategy and R&D, will ensure focus is given to developing new technologies that may support the longer-term reduction of Scope 3 emissions.
What is the rationale for increasing the PSA opportunity?
In recent years we have reduced executive pay. Meanwhile, our UK and Australian competitors have increased pay for executives. Our target pay is no longer competitive and, after years of good retention, we are starting to lose executives and may be at risk of losing more after having significant invested in their development. Given the scale of our strategic ambition, it is vital that we secure, retain and attract the talent required to achieve our goals. Increasing the PSA opportunity moves us closer to our competitors’ pay levels, in a way that is only realised with sustained long-term performance, enabling a focus on our decarbonisation strategy for competitive advantage. Further, we are requiring that the increased opportunity be added to mandatory shareholding requirements, increasing it by 100% of base salary for all executives.	CEO total remuneration at target
Why are you moving to a three-year performance period for the PSA?	How do the Policy proposals align executives with the wider workforce?
The use of a three-year performance period aligns our approach with typical market practice in the UK and the US while in Australia this approach is used by around one-third of larger companies. The inclusion of a two-year holding period will mean awards will continue to be released only after five years subject to achievement of the relevant performance conditions. The combined five-year time horizon aligns with UK market practice and is longer than most US and Australian companies. Participants will also continue to be strongly aligned with shareholders via increased share ownership requirements. The PSA is a critical tool for retaining, incentivising and motivating staff at many levels of management. The Committee believe that a three- year time horizon will be more tangible to participants below the Executive Committee and will therefore increase the competitiveness of the package and maximise the effectiveness of the PSA.	The new Policy maintains the strong alignment of the current policy between executive reward and reward in the broader organisation. The approach to base salary is consistent across the organisation.  No changes are proposed to benefits, keeping executive pensions in line with the broader employee population. The STIP applies in a consistent manner across a population of 26,000 eligible employees, while the PSA objectives ensure senior leaders are focused on creating sustainable long-term value for our shareholders.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 117

2023 remuneration outcomes

Executive Director remuneration (£’000)

The charts below set out the maximum and actual executive

remuneration, as calculated under the UK regulations. As explained

on page 127, there are differences in both the reporting and

methodology for measuring remuneration under the

Australian regulations.

Chief Executive
Jakob Stausholm
2023 Actual remuneration (percentage of maximum)
100%	56%	94.1%

2023 Threshold remuneration (percentage of maximum)
100%	25%	22.5%

2023 Maximum remuneration
100%	100%	100%

n Fixed n STIP n LTIP

Chief Financial Officer
Peter Cunningham
2023 Actual remuneration (percentage of maximum)
100%	56%	94.1%

2023 Threshold remuneration (percentage of maximum)
100%	25%	22.5%

2023 Maximum remuneration
100%	100%	100%

n Fixed n STIP n LTIP

2023 short-term incentive plan

Group financial scorecard
n	Weighting	50%
n	Weighted performance	22.4%
Group strategic scorecard
n	Weighting	50%
n	Weighted performance	33.6%

Strategic scorecard performance

In 2023, the Group strategic scorecard outcome was above target at 67.2%

of maximum.

Financial scorecard performance

In 2023, the Group financial STIP outcome was below target at 44.8%

of maximum.

Underlying earnings target range (threshold to outstanding) – US$(bn)

STIP free cash flow target range (threshold to outstanding) – US$(bn)

2019–2023 long-term incentive plan

TSR relative to EMIX/S&P Global Mining Index
n	Weighting	50%
n	Weighted performance	44%
TSR relative to MSCI World Index
n	Weighting	50%
n	Weighted performance	50%

LTIP

We outperformed the EMIX/S&P Global Mining Index by 5.1% per

annum resulting in 88% vesting of this component and the MSCI World

Index by 8.6% per annum resulting in maximum vesting of this

component. Overall vesting for the 2019 PSA was 94.1%.

Share ownership requirements

Jakob Stausholm

Appointed January 2021 (multiple of gross base salary)

Peter Cunningham

Appointed June 2022 (multiple of gross base salary)

Remuneration report continued

118 Annual Report on Form 20-F 2023 | riotinto.com

Impeccable ESG 20% 69%

Excel in development 10% 75%

People and culture 10% 73%

Social licence 10% 50%

Remuneration Policy

Remuneration Policy introduction

This Policy applies to our Executive and Non-Executive Directors and to

the Chair. In accordance with Australian law, it also sets out the broad

policy principles that apply to members of the Executive Committee who

are not directors.

Our Policy is binding only in so far as it relates to directors. Therefore,

implementing this Policy for executives who are not directors may vary

from that of the Executive Directors.

In determining the new Policy, the Committee followed a robust

process, which included multiple discussions and engagement with

investors and proxy advisers regarding the content of the Policy, taking

into account the needs of the business and evolving market and best

practice. The Committee considered input from both management and

our independent advisers while ensuring that conflicts of interest were

appropriately managed.

The overall structure of the new Policy remains broadly unchanged from the

Policy previously approved by shareholders in 2021. Updates to the Policy

largely reflect strategic focus, evolving corporate governance and market

practice, with changes being made to aid the operation of the Policy,

including refinements to incentive measures proposed for 2024. The key

changes to the Policy include increasing the LTIP maximum award to 500%

of salary (from 400%) to drive the decarbonisation agenda, and increasing

share ownership requirements.

Our remuneration policies, principles and practices

Our values of care, courage and curiosity reflect who we are and what

we stand for as a business. They guide the Committee in its decision-

making and are foundational to our remuneration-related policies,

principles and practices.

Our first priority is to allocate remuneration resources wisely. We want

our pay policies to be regarded as fair by employees and shareholders

alike to reward both short and long-term performance and to reinforce

the values and collective behaviours that drive sustainable

performance. Although we believe that our Policy is fit for purpose, the

Committee retains the discretion to override any unforeseen and

inappropriate formulaic outcomes.

People with high quality skillsets, who are capable of managing and

growing the business sustainably, are essential to delivering on our

strategic objectives. Rio Tinto operates in global markets where it

competes for talented executives in a limited pool. Our remuneration

strategy is therefore designed to attract and retain the people we need.

We recognise remuneration represents just one of the factors that

encourages the attraction and retention of talent. We also seek to

engage our employees over the long-term, to foster diversity, to offer a

caring and respectful work environment, to provide challenging work as

well as opportunities to build capability. Our people strategy is

underpinned by our commitment to safety and our core values.

Competitive remuneration linked to performance and

shareholder value creation

We link remuneration to performance targets over both the short- and

long-term, to ensure executive rewards align to both short-term priorities

and long-term sustainable growth in shareholder value. In order to

assess the competitiveness of the packages we offer, we benchmark

ourselves against other international mining and natural resources

companies, and companies in the FTSE 30 (excluding financial

services) and global industrials of comparable size, which typically have

similar global reach and complexity.

The outcomes of these benchmarking exercises form just part of our

consideration of the appropriate level of remuneration packages.

The actual outcome will depend on both business and individual

performance and behaviours.

We take salary increases in the broader employee population into

account in determining any change to the base salary of executives and

consult with shareholders on the design of our short- and long-term

incentive plans to ensure they are aligned with shareholder interests

and priorities. We do not formally consult with our employees on the

Policy, but approximately 60% of the workforce are shareholders

through participation in our employee share plans and therefore have

the right to vote on the Remuneration report. Employees are invited to

ask questions or express opinions through our normal employee

communication channels. Our employee engagement surveys in 2023

were completed by an average of 38,500 employees.

Performance under the STIP is measured over one year based on a

balanced scorecard including strategic and financial metrics. We

recognise the importance of ensuring targets are achieved in the right

way, aligned to our values and consider this when determining STIP

outcomes. 50% of the STIP is normally deferred into shares that vest

after three years.

Performance under the LTIP is measured over three years (for PSA

awards made from 2024) and awards are typically delivered in shares

together with cumulative dividends. Awards with a three-year

performance period are also subject to a holding period of a further two

years.

Our share ownership policy requires executives to build up and maintain

a material shareholding in the company as described in the

Implementation report.

Alignment with the UK Corporate Governance Code The UK Corporate Governance Code principles for developing a remuneration policy have been addressed as follows:
Principle	Focus
Clarity	Our Policy is set out in a fully transparent manner. Communications and engagement with stakeholders promotes clarity around all elements of the Policy.
Simplicity	Our Policy retains key features of transparency, alignment with our strategic objectives and simplicity to aid understanding.
Risk	The incentive arrangements have been structured to support effective risk management. This includes a strong focus on long-term success. Risks include non-financial risk, such as safety, the environment and heritage protection. Malus, clawback and suspension provisions apply to all variable remuneration, which allow for adjustment of rewards in the event of risk management failures.
Predictability	The remuneration outcomes under the different performance scenarios (threshold, target, and outstanding) are clearly set out with an estimate of potential maximum outcome if the share price increased by 50%. See charts on page 123.
Proportionality	The Policy maintains a strong link to strategy and performance. This is set out in the Policy table on page 116. The Committee also has discretion over all variable remuneration outcomes.
Alignment to culture	Our incentive plans are aligned with our strategic focus on long-term sustainable growth and a focus on values and behaviours.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 119

Executive remuneration structure – Policy table

The Policy set out on the following pages is designed to provide a total remuneration package that is appropriately balanced between fixed and

variable components, with an emphasis on long-term variable pay. The remuneration structure for executives, including the relationship between

each element of remuneration and Group performance, is summarised below.

Further details on the key performance indicators (KPIs) used to assess Group performance are provided in the Strategic report on pages 20-22.

Any commitment made before this Policy takes effect or before an executive became or becomes a director will be honoured even if it is not

consistent with this or any subsequent Policy.

Remuneration arrangements – Fixed

Base salary

Link to Group performance and strategy

–We pay competitive salaries to hire, motivate and retain highly competent executives from a global talent pool.

Operation

–Base salary is the main fixed element of the remuneration package.

–Base salaries are reviewed annually. We determine any increases based on Group and individual performance, global economic conditions, role

responsibilities, an assessment against relevant comparator groups and internal relativities. Any increase is generally aligned with the average

base salary increases applying to the broader employee population unless there were significant changes to an individual’s role and/or

responsibilities during the year. Such changes may include a promotion or increase in responsibility or where the executive’s base salary is

significantly below market positioning.

–Benchmarking is undertaken periodically but not annually, and our intention is to apply judgement in evaluating market data.

Pension or superannuation

Link to Group performance and strategy

–We provide competitive post-employment benefits in a cost-efficient manner in order to hire and retain.

Operation

–Employment benefits typically include participation in a pension plan, superannuation fund, or a cash allowance to contribute to a personal

pension or superannuation fund, which are aligned with the arrangements for the broader workforce in the country of employment.

–The maximum annual benefit is currently capped at 14% of base salary but may be adjusted to reflect changes in arrangements for the wider

employee population.

Other benefits

Link to Group performance and strategy

–We provide competitive other benefits in a cost-efficient manner in order to hire and retain.

Operation

–Other benefits may include, but are not limited to, private healthcare cover for the executive and their dependants, life insurance, accident

insurance, professional advice, participation in local flexible benefit programs and certain other minor benefits (including modest retirement gifts

in applicable circumstances, occasional spouse travel in support of the business, any Rio Tinto business expenses which are deemed to be

taxable, and any resulting tax on the benefits).

–Secondment, relocation and localisation benefits, including payment of transfer allowances, may also be made to and on behalf of executives

living outside their home country.

–Given the nature and variety of the items that make up benefits, there is no formal maximum level of company contribution.

Remuneration arrangements – Short-term performance-related (at risk)

Short-term incentive plan

Link to Group performance and strategy

–STIP focuses participants on achieving demanding annual performance goals, which are based on the Group’s priorities, in pursuit of the

creation of sustainable value for our stakeholders.

–We require that sustainable business practices are adhered to, particularly in the context of safety and ESG.

–We consider the individual performance of our executives against our values. The Way We Work outlines how we deliver both our purpose and

strategy. It makes clear how all employees are expected to behave, in accordance with our values of care, courage and curiosity.

Operation

–The level of award for threshold performance is normally set at either nil or 25% of maximum, but may be adapted to reflect the stretch of the

underlying targets.

–The award is normally pro-rated on a straight-line basis between threshold, target and outstanding points.

–The maximum award is capped at 200% of base salary for all executives. Any outcome from the formulaic STIP calculation is subject to

discretion by the Committee.

–A scorecard based on the Group’s priorities is established at the commencement of the financial year. The measures and the relative weightings

are selected by the Committee in order to drive business performance for the current year, including the achievement of strategic and financial

business outcomes that are priorities for the financial year in question. At least 50% of the measures will relate to financial performance, a

significant component will relate to safety performance and any work-related fatality will have a material impact on the STIP result for all

executives.

–At the beginning of each year, we expect to disclose the measures and weightings only, with targets deemed commercially sensitive. We intend

to disclose these targets and outcomes retrospectively.

–An individual performance multiplier may be applied to the STIP outcome, but the final payout may not exceed 200% of salary.

Remuneration report continued

120 Annual Report on Form 20-F 2023 | riotinto.com

Remuneration arrangements – Short-term performance-related (at risk) continued

Operation continued

–In making its year-end determination of STIP awards, the Committee seeks to ensure that actual performance is directly comparable to the

targets set at the beginning of the year. This may result in adjustments to the targets or to the assessed results being made by the Committee

(in particular to take account of events outside management’s control), to ensure a like-for-like comparison. Both upward and downward

adjustments can be made, with reference to principles agreed by the Committee, to ensure the outcomes are fair.

–Malus, clawback and suspension provisions apply and are set out later in the Policy.

Bonus deferral

Link to Group performance and strategy

–Provides ongoing alignment between executives and shareholders through deferral of part of the STIP award into Rio Tinto shares.

Operation

–50% of the STIP will normally be delivered in deferred shares (known as Bonus Deferral Awards (BDA)) with the remainder delivered in cash.

–BDA normally vest in the December of the third year after the end of the STIP performance year to which they relate.

–Dividends (or equivalents) may accrue in respect of any BDA that vest.

–Where permitted by the plan rules, and where the Committee so decides, awards may be made or satisfied in cash in lieu of shares. Awards are

normally, but not exclusively, granted with an intention to settle in shares.

–BDA vest on a change of control.

–Malus, clawback and suspension provisions apply and are set out later in the Policy.

Remuneration arrangements –  Long-term performance-related (at risk)

Performance share awards under the long-term incentive plan

Link to Group performance and strategy

–Performance share awards (PSA) are designed to provide a simple and transparent mechanism for aligning executive reward with the execution

of an effective business strategy and delivery of superior long-term shareholder returns.

–Award levels are set to provide substantive focus on and reward long-term performance. PSA are the most significant component within the

remuneration package and are calibrated so as to ensure the overall competitiveness of the remuneration package.

Operation

–PSA are conditional share awards (or economic equivalent) that vest subject to the achievement of stretching performance conditions and

continued employment.

–The Committee will set performance conditions aligned with the Group’s long-term strategic objectives for each PSA grant.

–For the 2024 awards, relative TSR has been retained as the primary measure as it provides an objective external assessment over a sustained

period on a basis that is familiar to shareholders. In addition, metrics linked to decarbonisation have been introduced to reflect the importance of

climate change and low-carbon transition to the Group’s strategy.

–While we expect TSR and decarbonisation will remain key performance metrics, the Committee retains the discretion to adjust the performance

measures and weightings as appropriate.

–PSA are normally only released five years after grant. From 2024, PSA are subject to a three-year performance period followed by a holding period of

two years, with awards usually only released to executives five years after the award was granted.

–Awards have a maximum face value of 500% of base salary when granted which is currently determined using the average share price of the

prior financial year. Actual annual award levels may vary for each executive.

–Threshold performance would result in the vesting of up to 22.5% of the award.

–Dividends (or equivalents) may accrue in respect of any PSA that vest.

–Where permitted by the plan rules, and where the Committee so decides, awards may be made or satisfied in cash in lieu of shares. Awards are

normally, but not exclusively, granted with an intention to settle in shares.

–Awards and performance conditions may be adjusted to take account of variations of share capital and other transactions. Subject to this Policy,

performance conditions may also be amended in other circumstances if the Committee considers that a changed performance condition would

be a fairer measure of performance.

–If there is a change of control, awards will vest to the extent performance conditions are then satisfied. Unless the Committee determines

otherwise, if the change of control happens prior to the vesting of the award, the number of shares that can vest will be reduced pro rata for the

period from grant to change of control relative to the vesting period. The Committee may, alternatively, with agreement of an acquiring company,

replace PSA with equivalent new awards over shares in the acquiring company.

–The Committee retains the discretion, where circumstances warrant, to amend performance conditions under the relevant plan rules. The

Committee will seek to ensure that outcomes are fair and that they take account of the overall performance of the company during the

performance period.

–Malus, clawback and suspension provisions apply and are set out later in the Policy.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 121

Shareholding requirements

Link to Group performance and strategy

–Shareholding requirements align executives’ interests with those of shareholders.

Operation

–The Group understands the importance of and expects executives to build up and maintain a material shareholding in Rio Tinto.

–Executives should aim to reach a share ownership in Rio Tinto shares, which is set as a fixed number of shares with reference to the following levels:

–Chief Executive: 5 x base salary

–Chief Financial Officer: 4 x base salary

–Other executives: 4 x base salary

–From an operational perspective these requirements are converted into a fixed number of shares.  For 2024, the required holdings are as follows:

–Chief Executive: 120,000 Rio Tinto plc shares

–Chief Financial Officer: 60,000 Rio Tinto plc shares

–Other executives (requirement varies by individual): 46,000-54,000 Rio Tinto plc shares or 40,000-46,000 Rio Tinto Limited shares

–The applicable number of shares will be reviewed at least every two years to account for salary and share price movements.

–Executives are expected to build up their shareholding over a five-year period. Longer periods may be accepted for new appointments.

–Shares are treated as “owned” once vested and where beneficial and/or legal ownership of the shares is held by the executive. A beneficial

interest includes any shares for which an executive receives the benefit of ownership (such as a right to receive dividends) without directly

owning the shares. Given the mandatory nature and absence of performance conditions, 50% of the unvested BDA will be treated as owned

accounting for likely effects of taxation.

–Executive Directors are expected to continue to meet the shareholding requirements for two years after ceasing to be an Executive Director (or if the

holding requirement is not met at this date, the relevant holding at the time). When considered alongside the existing leaver provisions for share

awards, this will ensure that Executive Directors will remain aligned with shareholders for an extended period.

–The Committee retains the discretion to enforce shareholding requirements through the application of malus to unvested share awards and/or

scale back of future grants.

Consequence management framework

In 2021, the consequence management framework was introduced as a framework to assist with the application of Committee discretion and the

potential recovery of incentives in exceptional circumstances.

Malus, clawback and suspension provisions will apply to all STIP and LTIP awards in cash or shares. Under both the malus and clawback

provisions, where the Committee determines that exceptional circumstances exist, the Committee may, at its discretion, reduce the number of

shares to be received on vesting of an award, or, for a period of two years after the vesting, the end of any holding period or payment of a share or

cash award, the Committee can clawback value from a participant.

The circumstances under which the Committee may exercise such discretion may include, inter alia:

–any fraud or misconduct by a participant or an exceptional event which has had, or may have, a material effect on the value or reputation of any

member of the Group (excluding an exceptional event or events which have a material adverse effect on global macroeconomic conditions).

–an error in the Group’s financial statements, which requires a material downward restatement or is otherwise material, or where information has

emerged since the award date, which would have affected the size of the award granted or vested.

–where the Committee determines that the personal performance of a participant, of their product group or of the Group 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 reasonably expected of a person in their position.

–the performance of the company, business or undertaking in which a participant worked or works or for which they were or are directly or

indirectly responsible for is found to have been misstated or subject to a material misrepresentation. Consequently, the award being granted

and/or vesting has resulted in a greater number of shares than would otherwise have been the case.

–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

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 or events occurring in any part of the Group.

Under the suspension provisions, the Committee may suspend the vesting or payment of an award (for up to five 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.

Note that where suspension applies, the 24-month clawback period will not extend beyond the period commencing from the original vesting date or

end of holding period.

Remuneration delivered under this Policy is also subject to any additional malus and clawback provisions operated by the company, including but not

limited to the Incentive-Based Compensation Clawback Policy adopted in compliance with the US SEC legislation requiring the clawback of incentives

erroneously awarded as a result of material misstatements for up to three financial years.

Discretion

The Committee recognises the importance of ensuring that the outcomes of the Group’s executive pay arrangements described in this Policy,

properly reflect the Group’s overall performance and risk appetite.

The Committee therefore 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 will also be mindful of broader diversity and inclusion ambitions.

The Committee may, at its discretion, adjust and/or set different performance measures if events occur (such as a change in strategy, a material

acquisition or divestment, a catastrophic safety or environmental incident, a change in control, or other unexpected event) 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.

Any discretionary adjustments for directors will be disclosed in the Implementation report for the relevant financial period.

Remuneration report continued

122 Annual Report on Form 20-F 2023 | riotinto.com

2024 remuneration opportunity

The following charts provide an indication of the minimum, target and maximum total remuneration opportunity, subject to shareholder approval of

the Remuneration Policy for the Executive Directors, together with the proportion of the package delivered through fixed and variable remuneration.

The STIP and PSA are both performance-related remuneration.

Chief Executive

(£’000)

n Fixed pay n STIP n PSA n 50% share price growth

Chief Financial Officer

(£’000)

n Fixed pay n STIP n PSA n 50% share price growth

The following table provides the basis for the values included in the charts above:

Fixed pay (stated in £’000)	Base salary1	Pension	Benefits2	Total
Jakob Stausholm	£1,285	£180	£110	£1,575
Peter Cunningham	£761	£107	£43	£911

1.Base salary is the salary effective 1 March 2024.

2.The value of benefits is as per the 2023 benefits figure in the single total figure of remuneration table, as set out in the Implementation report.

Performance-related pay
Target STIP and LTIP performance	–A STIP award of 50% of the maximum award, equating to 100% of base salary –Expected value of 2024 PSA of 50% of face value, calculated as 250% of base salary
Maximum STIP and LTIP performance	–A maximum STIP award of 200% of base salary –Full vesting of 2024 PSA, calculated as 500% of base salary

–PSAs granted under the LTIP are measured at 2024 face value. This does not constitute an estimate of the value of awards that may potentially

vest with respect to year-end 31 December 2026. An assumed 50% growth in share price has been included in the final illustration. No

assumption has been made for payment of dividends.

–Further details of the 2024 PSA are disclosed in the Implementation report.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 123

Minimum

Target

Maximum

Maximum + 50% share price growth

100%

26% 21% 53%

15% 24% 61%

11% 19% 47% 23%

Minimum

Target

Maximum

Maximum + 50% share price growth

100%

26% 21% 53%

15% 24% 61%

11% 19% 47% 23%

Recruitment remuneration

The table below sets out the policy for both internal and external recruitment. No form of “golden hello” will be provided upon recruitment. In the case

of internal appointments, commitments preceding appointment will be honoured.

Element	Recruitment policy
Base salary	We aim to position base salary at an appropriate level, taking into consideration a range of factors including the executive’s current remuneration and experience, internal relativities, an assessment against relevant comparator groups and cost. If a new Executive Director is initially appointed at a lower rate, the Committee retains the ability to award larger increases in subsequent years in order to realign the salary over time as the individual develops in the role.
Pension or superannuation	Consistent with Policy table.
Other benefits	Consistent with Policy table.
STIP	Eligible to take part in our STIP with maximum opportunity capped at 200% of base salary.
PSA under LTIP	Maximum face value of 500% of base salary in line with our Policy.
Buy-out awards	Any compensation provided to an executive recruited from outside the Group, for the forfeiture of remuneration arrangements on joining, is considered separately to the establishment of forward-looking annual remuneration arrangements. Our approach with respect to such “buy-outs” is to determine a reasonable level of award, on a like-for- like basis, consisting primarily of equity-based awards, but also potentially cash, taking into consideration the quantum of forfeited awards, their performance conditions and vesting schedules. The Committee will obtain an independent external assessment of the value of awards proposed to be bought out and retains discretion, subject to the considerations noted above, to make such compensation arrangements as it deems necessary and appropriate to secure the relevant executive’s employment. The Committee’s intention is that buy-out compensation should include, where appropriate, performance conditions and equivalent timeframes for release.
Relocation-related support	If the Committee concludes that it is necessary and appropriate to secure an appointment, relocation-related support and international mobility benefits may be provided, depending on the circumstances and in line with the Group’s broader approach. Any relocation arrangements will be set out in the Implementation report.

Executives’ service contracts and termination

Under normal circumstances, Executive Directors will be offered service contracts that can be terminated by either party with up to 12 months’ notice

in writing. In exceptional circumstances, an initial notice period of up to 24 months during the first two years of employment, reducing to up to 12

months thereafter, may be necessary to secure an external appointment. In some circumstances, it may also be appropriate to use fixed-term

contracts for Executive Directors.

Other executives are offered service contracts which can be terminated by the company with up to 12 months’ notice in writing, and by the executive

with up to 12 months’ notice in writing.

The contracts for executives include appropriate non-compete and restrictive covenants.

The current contract terms of directors and the other executives are included in the Implementation report. The letters of appointment are available

for inspection at Rio Tinto plc’s registered office, and at our AGMs.

Executives may be required to go on “Garden leave” during all or part of their notice period and may receive their base salary, STIP and other

benefits during the notice period (or the cash equivalent). Where applicable, tax equalisation and other expatriate benefits will continue in

accordance with the executive’s prevailing terms and conditions.

If termination is a result of redundancy, the terms of the relevant local policy or practice will apply in the same way as for other employees hired in

the same location.

The STIP and LTIP rules govern the entitlements that executives may have under those plans upon termination of employment, which is dependent

on whether they are considered an eligible leaver or not. In general terms, an eligible leaver is an executive who leaves the Group by reason of ill-

health, injury, disability (as determined by the executive’s employer), retirement with company consent, redundancy, transfer of the undertaking in

which the executive works, change of control of the executive’s employing company, or death in service. In addition, the plan rules afford discretion

to the Committee to award eligible leaver status in other circumstances.

In the case of dismissal for cause, the company can terminate employment without notice and without payment of any salary or compensation in lieu

of notice. The Committee will apply the consequence management framework, and outstanding awards under any of the Group’s incentive plans

may be forfeited and previous awards clawed back.

Remuneration report continued

124 Annual Report on Form 20-F 2023 | riotinto.com

Element	Termination policy
Base salary, pension and other benefits	Base salary will be paid in lieu of any unexpired notice and may be paid progressively in instalments over the notice period. For Executive Directors the Committee will (to the extent permitted by relevant law) have regard to the Executive Director’s ability to mitigate their loss in assessing the payment to be made. Executive Directors and their dependants may also be eligible for post-retirement benefits such as medical and life insurance. The company may also agree to continue certain other benefits for a period following termination where the arrangements are provided under term contracts or in accordance with the terms of the service contract, for example, payment for financial advice, tax advice and preparation of tax returns for a tax year. In some cases, they may receive a modest leaving gift.
Short-term incentive plan (STIP)	If an eligible leaver leaves the Group during a performance year, the Committee may determine in its absolute discretion to award a pro rata portion of the STIP based on the amount of the year served and based on actual assessment of performance against the scorecard targets. Any cash payment will be made at the normal STIP payment date and no portion of the award will be deferred into shares. If an executive provides the company notice of their resignation during the performance year, but does not leave the Group until after the end of the performance year, the Committee may determine in its absolute discretion to make an award under the STIP. In these circumstances, the executive will only be eligible to receive the cash portion of the award and will forfeit any deferred shares portion. Any cash payment will be made at the normal STIP payment date. No STIP award will be made where an executive who is not an eligible leaver leaves the Group, resigns or is terminated for cause prior to the end of the performance year.
Bonus deferral awards (BDA)	BDA will normally vest on the scheduled vesting date. There will be no pro-rating of BDA. Termination as an ineligible leaver at any point during the vesting period will result in forfeiture of BDA.
Performance share awards (PSA)	PSA will normally vest on the scheduled vesting date, subject to performance conditions. PSA will be reduced pro rata to reflect the period of employment between the date of grant of the award and the normal vesting date (in February following end of the three-year performance period). Leaver provisions apply until the release date of the awards at the end of the holding period. Termination as an ineligible leaver at any point during the five-year time horizon will therefore result in forfeiture of PSA.
Management share awards (MSA)	Any MSA granted prior to appointment will normally be retained, and vest, at the Committee’s discretion, at the scheduled vesting date (although awards for US taxpayers may vest on leaving). MSA will be reduced pro rata to reflect the period of employment between the date of grant of the award and the normal vesting date. Termination as an ineligible leaver at any point during the vesting period will result in forfeiture of MSA.
All-employee share plans	All-employee share awards will normally vest on or shortly after leaving. There will be no pro rata reduction of awards. Termination as an ineligible leaver at any point during the vesting period will result in forfeiture of awards.
Dividend shares	Any dividend equivalent shares will be calculated on the vesting of all share awards.
Repatriation	On termination, the company will pay relocation or expatriation benefits as agreed at the time of the original expatriation and/or in accordance with applicable legislation and internal policies on travel and relocation.
Accrued but untaken leave	Accrued but untaken annual leave and any long service leave will be paid out on termination, in accordance with the relevant country legislation and practice applicable to all employees.
Legal expenses	The company may pay reasonable legal and other professional fees (including outplacement support) to, or in respect of, an executive concerning the termination of their employment.
Settlement claims	Subject to the approval of the Committee, the company may pay such amount as it determines is reasonable to settle any claims that an executive may have in connection with the termination of their employment.
Restrictive covenants	While our employment agreements include appropriate restrictive covenants as a matter of practice, the Policy provides additional flexibility to make payments in respect of expanding or enhancing existing covenants to protect Rio Tinto and its shareholders. The amount of such payment will be determined by the Committee based on the content and duration of the covenant.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 125

Chair and Non-Executive Directors’ remuneration

The table below summarises how the fees are set and our Policy for the Chair and Non-Executive Directors:

Area	Chair	Non-Executive Directors
Setting of fees	The Committee (excluding the Chair, if they are a member) determines the terms of service and remuneration of the Chair.	The Non-Executive Directors’ fees and other terms are set by the Board upon the recommendation of the Chair’s Committee (which includes the Chair, Chief Executive and Chief Financial Officer).
Fees	It is Rio Tinto’s policy that the Chair should be remunerated on a competitive basis and at a level that reflects the complexity of the business and their contribution to the Group, as assessed by the Board. The Chair receives a fixed annual fee and does not receive any additional fee or allowance either for committee membership or being a committee chair, or for travel. The Chair does not participate in the Group’s incentive plans.	Non-Executive Directors receive a base fee with additional fees paid for further Board responsibilities such as committee membership, being a committee chair or taking on the senior independent director role. Allowances may be paid for attending meetings that involve medium or long-distance air travel. They do not participate in any of the Group’s incentive plans. Fees paid to Non-Executive Directors reflect their respective duties and responsibilities, and the time required for them to make a meaningful and effective contribution to Rio Tinto affairs.
Pension and superannuation	Rio Tinto does not pay retirement or post- employment benefits to the Chair.	Where the payment of statutory minimum superannuation contributions for Australian Non-Executive Directors is required by Australian superannuation law, these contributions are deducted from the director’s overall fee entitlements.
Benefits	The Chair may on occasion receive reimbursement for costs incurred in relation to the provision of professional advice. Other benefits include accident insurance (note this is neither contractual nor a taxable benefit), other minor benefits (including modest retirement gifts in applicable circumstances), occasional spouse travel in support of the business, any Rio Tinto business- related expenses that are deemed to be taxable and any tax the company has paid on their behalf.	Non-Executive Directors may on occasion receive reimbursement for costs incurred in relation to the provision of professional advice. Other benefits provided include accident insurance (note this is neither contractual nor a taxable benefit), other minor benefits (including modest retirement gifts in applicable circumstances), occasional spouse travel in support of the business and any Rio Tinto business-related expenses that are deemed to be taxable and any tax the company has paid on their behalf.

Appointment

The appointment of Non-Executive Directors (including the Chair) is

handled through the Nominations Committee and Board processes. The

Chair’s letter of appointment from the company stipulates their duties as

Chair of the Group and appointment may be terminated without liability

on the part of Rio Tinto in accordance with the Group’s constitutional

documents dealing with retirement, disqualification from office or other

vacation from office. Otherwise, their appointment may be terminated by

giving 12 months’ notice. Accrued fees will be paid up to the termination

date with the exception of dismissal for cause. The Committee has the

discretion to make a payment in lieu of notice if the Chair is not required

to serve their full 12 months’ notice. Should the Chair’s appointment be

terminated by reason of their removal as a director pursuant to a

resolution of shareholders at the AGM, the company shall be liable to

pay any fees accrued up to the date of any such removal.

The Non-Executive Directors’ letters of appointment from the company

stipulate their duties and responsibilities as directors. Each Non-

Executive Director is appointed subject to their election and annual re-

election by shareholders. Non-Executive Directors’ appointments may

be terminated by either party giving three months’ notice. There are no

provisions for compensation payable on termination of their

appointment. The letters of appointment are available for inspection at

Rio Tinto plc’s registered office and at the AGM.

The current fee levels are set out in the Implementation report.

As provided for in the Rio Tinto plc Articles of Association and Rio Tinto

Limited Constitution, the current maximum aggregate fees payable

annually to the Non-Executive Directors (including the Chair) for serving

on the Board and any committees is £3 million. This current maximum

aggregate amount of £3 million per annum was approved by

shareholders at the 2009 AGMs and it has remained unchanged during

the past 15 years, during which time the size of the Board has also

increased. An ordinary resolution will be proposed at the 2024 AGMs

seeking shareholder approval to increase the maximum aggregate

amount to £4 million per annum with effect from 1 March 2024. In the

event the resolution is not approved by the shareholders at the 2024

AGMs, the current maximum aggregate amount of £3 million per annum

will continue to apply.

Remuneration report continued

126 Annual Report on Form 20-F 2023 | riotinto.com

Implementation report

This Implementation report is presented to shareholders

for approval at our AGMs. It outlines how our Policy was

implemented in 2023 and the intended operation in 2024.

About our reporting

As our shares are listed on both the Australian

Securities Exchange and 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 two

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. Accordingly, our KMP comprise the

Board, all product group Chief Executives and

the Chief Commercial Officer.

Throughout this Remuneration report, KMP

are collectively referred to as “executives”.

They are listed on page 137, 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 129 shows remuneration for our

Executive Directors, gross of tax and in the

relevant currency of award or payment.

In table 1a on page 141, 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 142, we report the

remuneration of the Chair and the Non-

Executive Directors.

Shareholder voting

As required under UK legislation, the new

Policy will be subject to a binding vote 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. An additional resolution is being

put forward at the AGMs to increase the

annual maximum aggregate fees payable to

Non-Executive Directors from £3 million to

£4 million.

The differing approaches explained

As well as the difference in methodology for

measuring remuneration, there are also 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.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 127

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

–Developing strategies to implement the

Group’s values and to progress

implementation of the 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 diversity 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 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.

–Responsible for the Annual 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, 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:

Sam Laidlaw (Committee Chair)	Dominic Barton
Megan Clark (to 15 December 2023)	Dean Dalla Valle (from 1 November 2023)
Susan Lloyd-Hurwitz (from 1 June 2023)	Simon McKeon
Jennifer Nason	Ngaire Woods

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.

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 2023. Deloitte, the appointed

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, and

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 2023 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 2023, Deloitte’s

services also included attending Committee

meetings, providing support on the 2024

Remuneration Policy and giving advice in

relation to management proposals and

shareholder consultations.

Deloitte was paid $504,507 (2022: $545,620)

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.

How the Committee spent its time

in 2023

During 2023, the Committee met six times.

We fulfilled our responsibilities as set out in

our terms of reference including the expanded

scope on the broader People agenda.

Our work in 2023 included:

–Reviewing culture maturity metrics.

–Reviewing people development and

talent management.

–Determining any base salary adjustments

and LTIP grants for executives.

–Determining the targets for the 2023 STIP.

–Reviewing performance of the accountable

executives for Global Industry Standard on

Tailings Management (GISTM)

implementation.

–Reviewing performance against the 2022

STIP and 2018 PSA targets, including

assessing applicable adjustments.

–Considering shareholder feedback on the

remuneration-related resolutions for the

2023 AGMs.

–Transitioning from EMIX Global Mining

Index to the S&P Global Mining Index as a

relative performance comparator group

for PSA.

–Considering, reviewing and refining the

alternate structures for the new Policy.

–Consulting with shareholders and proxy

advisers on our new Policy proposals.

–Setting terms of appointment of Jérôme

Pécresse, Chief Executive, Aluminium.

–Terminating the employment of Ivan Vella,

Chief Executive, Aluminium.

–Further refining the consequence

management framework.

–Reviewing executives’ progress towards the

Group’s share ownership requirements.

–Reviewing the strategy and annual reports

on the Group’s global benefit plans.

Performance review process

for executives

We conduct annual performance reviews for

all executives. Our 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 it is discussed and considered with

the Committee and the Board. Performance

reviews for all executives took place in 2023

and early 2024.

Remuneration report continued

128 Annual Report on Form 20-F 2023 | riotinto.com

Executive Directors

Single total figure of remuneration (£’000)

						Incentive - STIP payment		Value of LTIP awards vesting1
Executive Director	Year	Base salary	Benefits	Pension	Total fixed	Cash	Deferred shares	Face value	Share price appreciation	Total variable	Single total figure
Jakob Stausholm (Chief Executive)	2023	1,227	110	172	1,509	692	692	4,425	1,132	6,941	8,450
Jakob Stausholm (Chief Executive)	2022	1,177	130	165	1,472	575	576	1,360	1,027	3,538	5,010
Peter Cunningham (Chief Financial Officer)	2023	726	43	102	871	409	410	361	92	1,272	2,143
Peter Cunningham (Chief Financial Officer)	2022	700	39	98	837	320	320	333	251	1,224	2,061

1.Dividend equivalent shares are applied on the vesting of the LTIP awards, are valued at the grant price for the LTIP awards and included in the face-value figure. The impact of share price change

for LTIP awards vesting is included under share price appreciation. The value of the 2022 LTIP awards vesting is restated to reflect the actual vested value.

The LTIP face value for 2023 is based on the number of PSA shares due to vest for the performance period ending 31 December 2023 (including

notional dividends accrued throughout the vesting period), valued at the share price on the grant date. Any impact of share price movement over the

vesting period is shown under the share price appreciation column. The increase in values for LTIP award vesting for the Chief Executive reflects a

full year grant in 2019 compared to a pro-rated grant in 2018.

The 2023 face value and the share price appreciation figures shown above are estimates of both the number of shares that will ultimately vest and

the share price on vesting. Once actual values are known these estimates will be restated in the following year. Refer to page 134 for further detail.

Fixed remuneration

Base salary

Consistent with prior practice, Executive Director base salary increases are in line with that awarded to the wider UK employee population.

The general salary increase for UK employees in 2024 will be 4%. Base salaries are reviewed with a 1 March effective date.

Executive Director	Annual base salary 1 March 2023 £'000	Annual base salary 1 March 2024 £'000	% change
Jakob Stausholm	1,235	1,285	4%
Peter Cunningham	732	761	4%

Benefits (2023)

Includes 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.

Pension (2023)

Pension benefits can either be paid as contributions to Rio Tinto’s company pension fund and/or as a cash allowance.

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)
Jakob Stausholm	8.4	163.4	172	14%
Peter Cunningham	8.4	93.3	102	14%

Short-term incentive plan (2023)

2023 outcome

For an executive’s STIP outcome, the weighted STIP financial and strategic scorecard results are added to determine the total result.

The resulting STIP is delivered equally in cash and deferred shares.

Executive Director	Weighted result (out of 100%)			Fatality deduction (%)	STIP (% of base salary)	Base salary £’000	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
Jakob Stausholm	22.4%	33.6%	56%	—%	112%	1,235	1,384	692	692	56%	44%	112%
Peter Cunningham	22.4%	33.6%	56%	—%	112%	732	819	409	410	56%	44%	112%

1.The Financial scorecard includes flexed financials (underlying earnings and free cash flow), focusing on the achievement of financial plan commitments and unflexed financials (underlying

earnings and 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 Everyday respect metrics) and social licence (reputation metric).

Maximum STIP award is capped at 200% of base salary. Target performance represents of 50% of maximum and outstanding performance

represents 100% of maximum.

Half of the STIP award will be paid in cash in March 2024, and the remainder will be delivered in deferred shares as a BDA, vesting in

December 2026. On cessation of employment, any unvested deferred shares will lapse unless the Committee decides the executive is an

eligible leaver.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 129

2023 short-term incentive plan measures

Performance categories	Weighting	Commentary
Financial	50%	For 2023, the financial measures were STIP underlying earnings and STIP free cash flow. The first, STIP underlying earnings, gives insight to cost management, production and performance efficiency. This is calculated as underlying earnings of $11.7 billion adjusted for items not reflective of performance in the year as described on page 131.  A reconciliation of underlying earnings to net earnings is provided on pages 290-291. STIP free cash flow demonstrates how we convert underlying earnings to cash and provides further insight into how we are managing costs, efficiency and productivity. STIP free cash flow comprises free cash flow (as reported on page 293), adjusted to exclude dividends paid to holders of non-controlling interests in subsidiaries ($0.5 billion) and development capital expenditure, to include development capital expenditure on decarbonisation ($2.7 billion). 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.
Strategic	50%	Impeccable ESG (20%) aims to promote safety in all its aspects and progress decarbonisation efforts as we work towards achieving our ambition to reduce Scope 1 and 2 emissions 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 “very high” and “extreme” classification tailings facilities. Decarbonisation measures progress of carbon abatement projects against incremental stages of development. People and culture (10%) aims to improve diversity, create an inclusive work environment in which people can thrive, accelerate our culture change, and reinforce our values. It encompasses gender diversity and Everyday Respect metrics. Gender diversity measures the year-on-year increase in representation of women in our organisation. Everyday Respect reflects the completion rate of the “Building Everyday Respect” employee training program. Excel in development (10%) 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 focuses on the opportunities coming out of the exploration pipeline and moving into formal studies. Studies assesses the number of studies approved to progress to project execution phase. Project delivery measures our execution progress in creating growth opportunities and closure projects across the Rio Tinto portfolio. Social licence (10%) is included as an indicator of our ability to build trust and acceptance of Rio Tinto with our external community of stakeholders. The general public perception in key countries is reflected by a reputation score currently measured via a third-party survey provider, RepTrak.

Calculation of 2023 short-term incentive plan award

The following table summarise the calculation of the 2023 short-term incentive plan (STIP) award for the Executive Directors. Threshold payout is nil on

financial measures and social licence and 25% of maximum for other strategic measures. Below threshold payout is nil on all other measures.

Group scorecard outcomes

		Weighting (out of 100%)	2023 performance1			Outcome	Result (% of maximum)	Weighted result (out of 100%)
			Threshold	Target	Outstanding
STIP Underlying earnings	Unflexed	12.5%	$6.4 billion	$9.1 billion	$11.9 billion	10.9	83.1%	10.4%
	Flexed	12.5%	$8.4 billion	$12.0 billion	$15.6 billion		34.7%	4.3%
STIP Free cash flow	Unflexed	12.5%	$7.5 billion	$10.7 billion	$14.0 billion	10.8	50.9%	6.4%
	Flexed	12.5%	$9.9 billion	$14.2 billion	$18.4 billion		10.4%	1.3%
Total Financials		50%					44.8%	22.4%
Impeccable ESG	AIFR2	3.3%	0.46	0.40	0.32	0.37	50%	1.7%
	SMM3	6.7%	4.6	5.1	6.1	5.2	55%	3.7%
	Decarbonisation4	10.0%	7Mt CO2e	10Mt CO2e	13Mt CO2e	12	83.5%	8.4%
People and culture	Everyday Respect	5.0%	30% of employees	40% of employees	50% of employees	83.5%	100%	5.0%
	Gender diversity	5.0%	1% improvement	1.5% improvement	2% improvement	1.4%	45%	2.3%
Excel in development	Exploration progression5	2.5%	1	2	3	3	100%	2.5%
	Project execution	5.0%	25%	50%	75%	50%	50%	2.5%
	Studies progression	2.5%	1 study	2 studies	3 studies	6	100%	2.5%
Social licence	Reputation	10.0%	55.9 or below	57.9 to 59.9 (inclusive)	60.9 or above	58.8	50%	5.0%
Total Strategic		50%					67.2%	33.6%
Total Group		100%						56%

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. AIFR improved from 0.40 in 2022 to 0.37 in 2023, surpassing the target. The AIFR component of the STIP result is however capped at target, which represents 50% of maximum, due to

three permanent damage injuries (PDIs). The PDIs occurred at our Diavik Diamond Mine in Canada, in Guinea and at Kennecott Underground, Integrated Skarns Project respectively.

3.The Group SMM STIP 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 “6+1” decarbonisation program,

including approved renewable energy, abatement and energy efficiency projects. Nature-based solution (NbS) offset projects are not in scope.

5.Six projects progressed from Projects of Merit (PoM) to Conceptual Study (CS) phase. Each project has been assigned a value of 0.5 points for the PoM to CS transition, resulting in a weighted

outcome of 3.

Remuneration report continued

130 Annual Report on Form 20-F 2023 | riotinto.com

Commentary on financial measures

Unflexed performance for our financial

performance is above target at 67%.

Above-plan commodity prices have continued

to provide us with an uplift in financial

performance: the iron ore realised price of

$100 per wet metric tonne (wmt) being 11%

higher than plan; the copper price 4% higher

than plan.

Flexed performance to remove the impact of

commodity prices and foreign exchange rates

gives us an indication of underlying business

performance. Key drivers of flexed

performance are reflected in lower than

planned production volumes as a result of the

overland conveyor belt failure and extended

smelter shut down at Kennecott, the two

furnaces that remain offline following the two

process safety incidents at Rio Tinto Iron and

Titanium Quebec Operations (RTIT) in June

and July, and the disruptions caused from the

forest fires at Iron Ore Company of Canada

(IOC) in June.

Our earnings performance benefited from

a number of one-off events and non-cash

impacts. Conversely, our cash flow performance

was impacted by a build in working capital in

2023 of $0.9 billion which was not in the plan.

This mainly related to a build in inventory at

Kennecott following the extended smelter

rebuild and higher working capital at RTIT,

reflective of weaker market conditions.

Based on these factors, the flexed component

is below target for earnings (at 34.7%) and

cash flow (at 10.4%).

In line with our standard STIP principles, two

downward adjustments were approved by the

Committee to ensure the outcome was a fair

reflection of underlying performance. These

related to benefits to underlying earnings that

were not reflective of performance during the

year. The two adjustments were in connection

with the Group's share of net interest on

shareholder loans following the acquisition of

the minority interest in Turquoise Hill

Resources in 2022 and the update of the

Group's discount rate and inflation

assumptions applied to closure and other

provisions, along with a resulting lower

amortisation charge in the period.

Outcome for financials (unflexed and flexed):

below target (at 44.8%)

Commentary on Strategic measures

Impeccable ESG

Safety is our number one priority, and while we

had zero fatalities at our managed operations

in 2023, tragically four colleagues died in a

plane crash while travelling to our Diavik mine

in January 2024. These fatalities will be

considered further when reviewing 2024

performance. In 2023, we improved our all-

injury frequency rate (AIFR) performance from

0.4 to 0.37, exceeding the annual target of 0.4.

Regrettably, we had three permanent damage

injuries (PDIs) in Canada at Diavik, in Guinea

and in the US at Kennecott. Acknowledging

the PDIs, the result for the AIFR component

has been capped at target.

As part of our continual improvement, we have

also seen an uplift of 0.6 in our safety maturity

model (SMM) assessments score, against a

target improvement of 0.5, resulting in a SMM

global score of 5.2. We have also

exceeded the target for our GISTM

implementation plans for “extreme” and “very

high” consequence tailings facilities in 2023.

We have had no incidents with off-lease

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 in 2030 and achieve net zero

Scope 1 and 2 emissions by 2050.

The carbon abatement target set for 2023 was

10Mt of CO2e. A total of 29 projects

progressed through a development stage

during the year, leading to an above target

performance of 12Mt CO2e abatement

expected by 2030.

Outcome for Impeccable ESG: Above target

Excel in development

Excel in development encompasses goals

focusing on exploration progression, studies

progression and project execution. 

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 Study

(CS) phase, and studies advancing from

Target Testing (TT) to PoM.

Six projects in the exploration portfolio pipeline

advanced from PoM to CS phase in 2023,

across a large variety of ore deposits. Each

project has been assigned a value of 0.5

points for the PoM to CS transition, resulting in

an outstanding weighted score of three.

Studies progression of six studies, significantly

exceeding the target of two, obtained approval

from the Investment Committee (IC) to

progress from feasibility study to execution

project, including North Rim Skarns Stage 1 at

Kennecott Copper, AP60 smelter expansion at

Aluminium, West Angelas Deposit A-West,

Parker Point Stockyard Sustaining, Hope

Downs 1 Sustaining and Coastal Water

Supply Sustaining at Iron Ore. We have also

made significant progress towards the full

approval of the Simandou project in Guinea.

This is the highest number of studies to

progress to execution in a single year since

2012. This outstanding result provides

diversified growth opportunities across

commodities of Copper, Aluminium and

Iron Ore. 

Projects execution refers to the percentage of

in flight and completed projects on track

against the IC plan. Throughout 2023, we

made strong progress on a range of projects.

Four out of eight projects finished the year

within three months of the approved IC

schedule, achieving the “on track” project

target of 50%, including Integrated Skarns

Underground Characterisation, Western

Range, Oyu Tolgoi underground and the Gove

Refinery Closure projects. At the Oyu Tolgoi

copper mine, the construction of the

conveyor to surface works is approaching

90%, with critical path maintained and the

mine schedule optimisation work completed.

Both shafts 3 and 4 are expected to be

commissioned in the second half of 2024.

At Western Range, we made progress on bulk

earthworks and on the primary crusher pad

construction, and the 5-month Coarse Ore

Stockpile shutdown is underway.

Outcome for Excel in development:

Above target

People and culture

Our People and culture scorecard focuses on

building everyday respect and improving

gender diversity.

Building everyday respect progressed in 2023,

with deployment of the Everyday Respect

training program (Building Everyday Respect

through care, courage and curiosity) across

our organisation. The goal of the program is to

set the foundational elements of psychological

safety at a Group level and to emphasise the

role everyone plays in creating a

psychologically safe, respectful, and inclusive

work environment. Over 34,000 of our in-

scope employees completed the program

either through a self-paced module or face-to-

face sessions. Our training completion rate

target has been significantly exceeded,

reaching 83.5%.

Gender diversity in 2023 was focused on both

increasing the number of women and

changing the culture to become more

inclusive, the representation of women across

our business remains a challenge. It will

continue to be an area of high focus in 2024.

The year-on-year average global increase was

1.4 percentage points, landing below our 1.5

percentage points target. The increase is

distributed across all levels of the organisation

with women representation amongst senior

leaders increasing year on year from 28.3% to

30.1%, and representation in operations and

general support functions increasing by 1.5

percentage points, from 16.2% to 17.7%.

Outcome for People and culture: Above target

Social licence

Reputation as the social licence metric

focuses on building trust and acceptance of

Rio Tinto with our community of external

stakeholders. The general public perception in

key countries is reflected by a reputation score

measured by RepTrak. The 2023 result was

58.8, within the target range of 57.9 to 59.9.

This score is a weighted, global aggregate

made up of results from Australia, Canada,

Mongolia, New Zealand, South Africa, United

Kingdom, and the US.

Outcome for Social licence: At target

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 131

Commentary on Individual

performance

Jakob Stausholm

Individual multiplier outcome: Not applied

Strategic objectives	Assessment
Impeccable ESG	–Substantial efforts to progress our decarbonisation commitments, with two sites transitioning to renewable diesel (Boron complete and Kennecott to commence in early 2024), with continued focus on progressing new technologies including BlueSmelting at Sorel-Tracy, Nuton and BioIronTM. Key to achieving our 2030 decarbonisation target is the repowering of our Gladstone operations and, with substantial effort made in 2023, this has resulted in driving the development of the largest solar farm in Australia, announced in early 2024. –Publishing of our Water Data platform, delivering market-leading transparency and disclosure at the asset level. Water discharges are monitored at the vast majority of our operations, with a number of sites already undertaking significant water monitoring programs as part of regulatory processes. –Progress on safety marred by three permanent damage injuries.
Excel in development	–Significant progress of the Simandou project, to unlock the largest known undeveloped, high-grade iron ore resource globally. –Successful completion of the Matalco recycling joint venture, strengthening the ability for our North American business to meet the growing demand for low-carbon materials. –Commenced early works on the $1.1 billion expansion of our AP60 smelter in Quebec. –Strengthened the future of our Pilbara iron ore portfolio with Western Range construction on schedule, Rhodes Ridge moving to pre- feasibility phase and productivity improvements at Gudai Darri resulting in an expected uplift in capacity. These steps are pivotal to us meeting our mid-term capacity target of 345–360 million tonnes. –Development of lithium business behind plan.
People and culture	–Strong leadership continues to develop and is focussed on culture. Employee satisfaction (eSat) and recommend scores exceeded 2022 levels. –Implementation of the 26 recommendations from the Everyday Respect report remain on track, and, in line with these recommendations, we are completing an independent progress review in 2024. –Establishment of the global leadership collective for our most senior employees to further drive cultural change. –Improvement in representation of women at all levels of the organisation, but further work required on gender diversity across the workforce.
Social licence	–The Pilbara renewables MoU was signed with Yindjibarndi Energy, an important step to mark a change from the past in our engagement with Traditional Owners. Co-management of replacement mines in the Pilbara remains a key focus for the Group. –Iron Ore Company of Canada signed an agreement to establish a mutually beneficial relationship with the Naskapi Nation of Kawawachikamach. –Relationships with government and civil society continue to improve and deepen. Regular roundtables with global civil society organisation (CSO) in each of our key regions continue to improve transparency and trust and our understanding of society’s needs.
Best operator	–The Group’s total copper equivalent production increased by over 3% from 2022 despite extended shutdown at Kennecott. –Delivered the second highest year of shipments from the Pilbara, driven by the ramp up of Gudai-Darri and the implementation of the Rio Tinto Safe Production System. –Achieved first sustainable production at our Oyu Tolgoi underground mine in March 2023, with strong performance throughout the year as the underground mine continues through a ramp up phase. –Completed the largest rebuild of the smelter and refinery in Kennecott’s history, demonstrating continued investment in our existing assets to enhance resilience. –Exceeded the deployment targets set for the Safe Production System, driving forward operational improvements across the Group. –Production volumes impacted by equipment reliability and furnace shutdowns.

Peter Cunningham

Individual multiplier outcome: Not applied

Strategic objectives	Assessment
Impeccable ESG	–Strengthened investment approach to carbon abatement. This led to a significant increase in the number of projects that we were able to progress. –Supported the simplification of decarbonisation investment pathways resulting in greater use of commercial solutions and partnerships, easing capital expenditure requirements this decade. –Supported investments in renewable energy (Australia, South Africa), renewables diesel (Kennecott, Boron), research and development investment in hard to abate processing emissions, as well as nature-based solutions partnerships generating high quality carbon credits to complement our decarbonisation efforts.
Excel in development	–Key contributor to the formation of the Matalco recycling joint venture through leadership of the Business Development, Treasury and Evaluation teams. –Played a critical role in the execution of strategy and shaping the portfolio, including progressing the high-grade iron ore Simandou project and studies for Pilbara replacement mines, investing in AP60 expansion, partnering to develop the La Granja copper mine, and progressing Kennecott underground. –Maintained financial strength with consistent capital allocation, balancing essential capital expenditure with shareholder returns and growth.
People and culture	–The performance management framework was improved during the year, with more comprehensive and integrated reporting but further work needed to fully embed across the organisation.  –Has been a strong advocate for simplification and standardisation, as well as removing complexity through rule changes, technology and innovation, system interventions and in-sourcing of some key activities. –Has promoted an owner’s mindset, with comprehensive communications throughout the year, focused on the performance of our STIP scorecard.
Social licence	–Further developed a comprehensive capital allocation processes to promote investment decisions and further build partnerships and capabilities. –Supported investment for creating growth options and social licence through targeted exploration and evaluation, communities and social performance (CSP) and social investment, decarbonisation, and research and development.
Best operator	–Led the simplification and continuous improvement with a strong focus on the transformation of business productivity through increased use of digital. –Continued to streamline the investment approval process to dedicate time to the most complex decisions. –Supported investments that improved asset discipline and performance management, resulting in 3% copper equivalent production growth at the Group level.

Remuneration report continued

132 Annual Report on Form 20-F 2023 | riotinto.com

2024 short-term incentive plan

This section outlines the operation of the 2024 short-term incentive plan (STIP).

2024 short-term incentive plan measures and weightings

Financial scorecard dimension	Weighting	What does it measure?	Commentary
Underlying EBITDA – Unflexed	12.5%	Underlying EBITDA is a segmental 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 careful cost management are well reflected in Underlying EBITDA. The EBITDA target for STIP purposes equates to the EBITDA of the Group’s annual plan.
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 EBITDA outcome of our underlying business performance, aligned to the core objective of Best Operator.
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.	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 for STIP purposes equates to the same measure of the Group’s annual plan.
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 Best Operator.
Total weighting	50%

Strategic scorecard dimension	Weighting	What does it measure?	Commentary
Impeccable ESG
Decarbonisation	10%	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 resources deployment of decarbonisation projects.
Safety index	10%	AIFR as a lag indicator and SMM at our assets as a lead indicator, which includes maturity of safety leadership, including psychological safety. 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.
People and culture
Diversity	5%	Improving representation of women at Rio Tinto.	The ongoing focus on improving gender representation is an important contributor to advancing our culture change agenda.
Culture	5%	Measuring progress in our culture change journey.	Using trends in responses and scores to our engagement surveys to demonstrate to what extent our culture is changing.
Excel in development
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.
Social licence
Reputation	10%	Indicators of progress made in building acceptance and trust with our community of external stakeholders, including but not only communities, governments, customers, suppliers, and civil society. General public perception in key countries is measured by a reputation score.	Assesses trust and acceptance of us by a broad community of stakeholders. We are developing further tools to assess social licence beyond 2024.
Total weighting	50%

A fatality deduction of 10% will be applied to the overall scorecard outcome in the event of work-related fatalities. This 10% deduction combined with

the 10% weighting of the safety index maintains the prominence of safety in the STIP structure.

The specific targets for the 2024 STIP are considered by the Board to be commercially sensitive. These will be disclosed alongside the outturn

retrospectively in the 2024 Implementation report.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 133

Long-term incentive plan

PSAs granted in 2019 were based on two performance conditions,

both measured over a five-year performance period:

–TSR relative to the EMIX Global Mining Index – 50%

–TSR relative to the MSCI World Index – 50%

The TSR performance condition against the MSCI World Index has

been met in full. The performance outcome against the EMIX Global

Mining Index was 88.2% resulting in an overall vesting of 94.1%.

The value of the shares vesting included in the single total figure of

remuneration table for 2023 is an estimate, as the actual value can only

be determined once the share price and final application of dividend

equivalents on vesting are known.

The disclosed value is based on:

–The approved TSR outcome relative to the EMIX Global Mining Index

(transitioned to S&P Global Mining Index from 1 August 2023

following the decommissioning of the EMIX on 31 July 2023) and

MSCI World Index (with associated dividend equivalent shares)

–The average share prices for Rio Tinto plc and Rio Tinto Limited over

the last quarter of the five-year performance period (Q4 2023).

The actual value associated with the 2019 PSA vesting will be disclosed

in the 2024 Remuneration report.

Calculation of 2019 PSA vesting

Our independent remuneration consultants, Deloitte, calculated performance against the TSR measures. 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.

Index	Threshold (22.5% of maximum)	Maximum (100% of maximum)	Actual TSR outperformance	Weighting	Vesting outcome
S&P Global Mining Index1	Equal to Index	Index + 6% p.a.	Index + 5.1% p.a.	50%	88.2%
MSCI World Index	Equal to Index	Index + 6% p.a.	Index + 8.6% p.a.	50%	100%

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 outstanding PSA.

Executive Director	Year included in single figure	Award	Overall vesting %	Dividend equivalents	Dividend equivalents (% of shares vesting)	Shares (including dividend equivalents)	Share price	PSA outcome (£’000)1
Jakob Stausholm	2023	2019 PSA	94.1%	28,796	38%	103,708	£53.59	£5,558
Peter Cunningham	2023	2019 PSA	94.1%	2,347	38%	8,453	£53.59	£453

1.The PSA outcome is an estimate based on the average share price over the last quarter of 2023.

For reference, the 2018 PSA vested in full on 23 February 2023 with Rio Tinto plc and Rio Tinto Limited share prices of £59.83 and A$125.51

respectively (closing share price on the day prior to vesting). Dividend equivalents were equal to 33.5% for Jakob Stausholm and 35.1% for Peter

Cunningham of the vested awards.

Long-term incentive plan awards granted in 2023

These awards are subject to TSR performance relative to the S&P Global Mining Index and MSCI World Index (equal weighting). Targets for

threshold and maximum performance are unchanged from prior years.

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	Vesting month
Jakob Stausholm	PSA	22 March 2023	400%	4,942	22.5%	£53.07	93,114	31 December 2027	February 2028
Peter Cunningham	PSA	22 March 2023	400%	2,926	22.5%	£53.07	55,134	31 December 2027	February 2028

1.In line with the Policy, the grant price for PSA is determined by reference to the average share price for the calendar year prior to year of grant. The grant price of £53.07 represents the Rio Tinto

plc average share price for 2022.

Long-term incentive plan due to be granted in 2024

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
Jakob Stausholm	PSA	500%	6,424	22.5%	£53.43	120,232	31 December 2026	February 2029
Peter Cunningham	PSA	500%	3,804	22.5%	£53.43	71,195	31 December 2026	February 2029

1.In line with Policy, the grant price for PSA is determined by reference to the average share price for the calendar year prior to year of grant. The grant price of £53.43 represents the Rio Tinto plc

average share price for 2023.

Performance measures

The Committee intends to grant 2024 PSAs with performance metrics, weightings and targets in line with the approach set out in the new Policy.

80% of the award will be based on relative TSR measured on a weighted ranked basis against a sector and a broader market index. For the 2024

award, the weighting has been re-balanced so that two-thirds of the TSR element will be measured relative to sector peers and the remaining one-

third measured against a broader market reference point. The remaining 20% of the award will be based on strategic measures linked to

decarbonisation.

Performance measures	Threshold (22.5% of maximum)	Maximum (100% of maximum)	Weighting
Relative TSR vs S&P Global Mining Index	Median	Upper Quartile	53.3%
Relative TSR vs MSCI World Index	Median	Upper Quartile	26.7%
Decarbonisation scorecard	see below	see below	20%

Remuneration report continued

134 Annual Report on Form 20-F 2023 | riotinto.com

Decarbonisation

Given the scale and complexity of our emissions portfolio and our decarbonisation ambitions as well as the multi-year timeframe for this transition,

performance and progress will be assessed using a balanced scorecard. The decarbonisation scorecard includes a combination of  metrics that

address opportunities and risks from the energy transition to incentivise long-term competitive advantage. The balanced scorecard includes the

following four equally weighted elements assessed over the three-year performance period:

Objective	Details
Residual emissions	–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 achieve the 2030 ambition. –The Committee will take into account the relative contribution of nature-based offsets directly associated with Rio Tinto landholdings or those of its joint ventures when assessing performance. The contribution will be capped at 10% and for any outcome above target the contribution from offsets will be ignored.
Project delivery	–The successful delivery of abatement projects will be fundamental to achieving our stretching decarbonisation objectives. –Working with the Decarbonisation Office the Committee have identified a number of priority decarbonisation projects for which investment approval has been granted, or is expected to be granted in 2024. Examples of projects to be included for 2024 - 2026 performance period are the commissioning of a BioIronTM continuous pilot plant and an electric boiler at IOC, both of which have been noted at previous investor seminars and are further defined in our 2023 Climate Change Report. The projects included will be planned for execution within the performance period and will typically have a duration of 1-3 years. These will be physical projects, potentially including renewable energy project delivery, alumina process heat reductions, minerals processing solutions or projects that support our partners with Scope 3 emissions reductions. Commercial solutions such as power purchase agreements or procuring biofuels would not be considered in this metric. –At the end of the three-year performance period, there will be a qualitative assessment of project delivery measuring conformance to plan for both spend and schedule. Using a pre-determined framework, each project will be assigned a score out of ten and vesting will be determined based on the average score of the projects.
Technology development	–Progressing towards net zero will require technology advancement and research and development breakthroughs that convert into implemented projects. –This metric assesses Group spend committed to research and development and the successful implementation of projects that have a meaningful impact on the abatement of emissions (including spend associated with reducing Scope 3 emissions).
Transition strategy	–This measure will align decarbonisation activity with our value creation strategy, specifically in building new capabilities or commitments towards new growth assets. –Three transition strategy outcomes have been identified that are significant to Group value, namely, Pacific Operations (PacOps) decarbonisation, ELYSISTM implementation, and aluminium and copper recycling. Working with the Chief Scientist, each project has been assigned a bespoke scorecard that enables a qualitative assessment of progress and performance. –At the end of the three-year performance period, each transition strategy will be assigned a score out of ten using a predetermined framework and vesting will be determined based on the average score of the transition objectives.

While the Committee have spent considerable time ensuring that the targets are robust, challenging and in line with our strategy, it is recognised that

this is a complex and evolving area. Assessment of the scorecard will inevitably require a degree of judgement to ensure that outturns are an

appropriate reflection of performance. To support the Committee with their assessment, additional processes have been introduced including input

from subject matter experts within the business, as well as other Board Committees, and development of a framework to scoring results. The targets

under each element of the scorecard are summarised below:

Objective	LTIP weighting	Threshold (22.5% of maximum)	Target (50% of maximum)	Maximum (100% of maximum)
Residual emissions Reduction in residual emissions relative to 2018 baseline	5%	3.6Mt CO2e	5.1Mt CO2e	6.6Mt CO2e
Project delivery Conformance to plan for priority decarbonisation projects	5%	Average score of at least six out of ten being a maximum deviation of 25% from planned cost and schedule	Average score of at least eight out of ten being a maximum deviation of 15% from planned cost and schedule	Average score of at least nine out of ten being less than 10% deviation from planned cost and schedule
Technology development Technology advancements and research and development  breakthroughs that convert into implemented projects	5%	0.2% of Group revenue on decarbonisation research and development spend At least one project into implementation totalling 250kt annual abatement	0.4% of Group revenue on decarbonisation research and development spend At least one project into implementation totalling 500kt annual abatement	0.5% of Group revenue on decarbonisation research and development spend At least two projects into implementation totalling 750kt annual abatement
Transition strategy Alignment of decarbonisation activity with value creation	5%	Average score of at least six out of ten representing more limited progress	Average score of at least eight out of ten 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 nine out of ten representing significant outperformance of expectations, implementation achieved or a major new advancement with scope for material benefits

In disclosing the above information the Committee has sought to provide transparency of the metrics, targets and how different outcomes will be

rewarded, noting that certain details within the scorecard, such as those relating to activity addressing project delivery and technology development

outcomes, are considered commercially sensitive. However, further detail on the targets and outcomes will be disclosed at vesting. The Committee

also recognises that, although long-term in nature, the decarbonisation strategy will inevitably evolve over time and it is in shareholders’ interests for

the business to remain suitably agile (eg responding to technological advancements).

In setting the above measures and targets, the Committee has been mindful to use quantitative measures where possible to ensure the targets can

be assessed through formulaic vesting outcomes. This approach also provides for straight-line vesting between threshold, target and maximum

outcomes, where appropriate. 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. The use of offsets towards any

measure will be limited, and in the case of the residual emissions targets, will be capped and used only towards any outcome up to target.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 135

Executive Directors’ shareholding

In line with our share ownership policy, Executive Directors’ shareholdings are calculated using the closing price of Rio Tinto shares on

31 December 2023.

Executive Director	Multiple of base salary			Holding of ordinary shares
	31 December 2023	Requirement	Year requirement needs to be met	31 December 2023	31 December 2022
Jakob Stausholm	5.1	4.0	2024	95,363	56,337
Peter Cunningham	5.5	3.0	2026	63,053	52,815

The multiple of base salary shown above includes 50% of the value of unvested BDA.

We operate a post-employment holding requirement for Executive Directors, but no former Executive Directors are currently subject to a holding

requirement.

Service contracts

Executive Director	Position held during 2023	Date of appointment to position	Notice period
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 by the company by paying the base salary only in lieu of any unexpired notice.

Executives’ external and other appointments

Neither of the Executive Directors currently has an external directorship.

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)
2014	Sam Walsh	A$10,476	88.4%	49%
2015	Sam Walsh	A$9,141	81.9%	43.6%
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%
2019	Jean-Sébastien Jacques	£5,999	74.8%	76%
2020	Jean-Sébastien Jacques	£8,670	0%	66.7%
2021	Jakob Stausholm2	£2,788	61.3%	–
2022	Jakob Stausholm3	£5,010	48.7%	100%
2023	Jakob Stausholm	£8,450	56%	94.1%

1.STIP award and PSA vesting percentages restated following release from the deed of deferral as described in prior 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 2022 single total figure of remuneration for Jakob Stausholm reported in the 2022 Remuneration report was £4.8 million based on the estimated value of the 2018 PSA which vested at 100%.

The single total figure of remuneration for 2022 shown above is restated and based on the actual vesting share price of £59.83.

The effect of performance on the value of shareholdings, as measured by TSR delivered over the past five 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 %
2019	10,373	21,197	635	3,730	4,503	78.47	100.40	38.7%
2020	12,448	23,902	386	4,503	5,470	100.40	113.83	34.0%
2021	21,401	37,720	963	5,470	4,892	113.83	100.11	(3.8)%
2022	13,359	26,272	746	4,892	5,798	100.11	116.41	18.3%
2023	11,755	23,892	402	5,798	5,842	116.41	135.66	15.8%

The data presented in this table reflects the dual corporate structure of Rio Tinto. We weight the two Rio Tinto listings to produce a Group total

shareholder return (TSR) figure in line with the methodology used for the 2019 PSA.

TSR has been calculated using spot Return Index data as at the last trading day for the year sourced from DataStream.

Remuneration report continued

136 Annual Report on Form 20-F 2023 | riotinto.com

Total shareholder return

The vesting of the PSA granted in 2019 was subject to relative TSR

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 2019 PSA.

It uses the same methodology as that used to calculate the vesting for

the PSA granted in 2019 with a performance period that ended on 31

December 2023.

Total shareholder return

1.TSR has been calculated using 12 month average Return Index data for the year sourced

from DataStream.

2.TSR for Rio Tinto Group 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

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 ten years to the end of 2023.

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 2019.

Total shareholder return

1.TSR has been calculated using spot Return Index data as at the last trading day for the year

sourced from DataStream.

2.TSR for Rio Tinto Group 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

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 Remuneration 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.

2023 Remuneration mix

Maximum

Target

n Fixed pay n STIP – Cash n STIP – BDA n LTIP

2023 Assumptions

The value of benefits is estimated at 11% 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 200% of base salary
Maximum STIP and LTIP performance	–Maximum STIP award of 200% of base salary –Maximum PSA face value of 400% 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 the respective dates of appointment:

Name	Position(s) held during 2023	Date of appointment to position
Bold Baatar	Chief Executive Copper	1 February 2021
Alfredo Barrios	Chief Commercial Officer	1 March 2021
Sinead Kaufman	Chief Executive Minerals	1 March 2021
Jérôme Pécresse	Chief Executive Aluminium	23 October 2023
Simon Trott	Chief Executive Iron Ore	1 March 2021
Ivan Vella1	Chief Executive Aluminium	1 March 2021

1.Ivan Vella ceased to be a KMP on 23 October 2023 and his employment terminated on 15 November 2023.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 137

Base salary

Base salaries for Executive Committee 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. As disclosed last year, Bold Baatar and Simon Trott received a higher salary increase in 2023 to reflect

their market positioning.

Short-term incentive plan

Overview of 2023 short-term incentive plan weightings and measures

The measures and weightings used to determine short-term incentive plan (STIP) awards for executives in 2023 are set out on page 130.

The 2023 STIP awards are detailed in the table below.

			Percentage of:
	2023 STIP award (% of salary)	2023 STIP award ('000)	Maximum STIP awarded	Maximum STIP forfeited
Bold Baatar	140%	£941	70%	30%
Alfredo Barrios	84%	SGD981	42%	58%
Sinead Kaufman	112%	A$1,188	56%	44%
Jérôme Pécresse	112%	C$258	56%	44%
Simon Trott	140%	A$1,650	70%	30%

Share ownership

The following table shows the share ownership level for other KMP as a

multiple of base salary.

	Share ownership level at 31 December 2023 as a multiple of base salary
Bold Baatar	5.9
Alfredo Barrios	4.5
Sinead Kaufman	6.2
Jérôme Pécresse	0.4
Simon Trott	5.4

Share ownership level is calculated using the market price of Rio Tinto

shares on 31 December 2023, and we define “share ownership” in

our Policy.

Service contracts

Alongside the new Policy, any newly signed 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 is comprised of 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 400% 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 of 300% of base

salary applies on appointment to be built up over subsequent years.

Executive departures

Ivan Vella ceased to be a KMP on 23 October 2023 and his

employment was terminated on 15 November 2023 as an ineligible

leaver. All subsisting variable remuneration was therefore lapsed

and only statutory payments for accrued leave were made

following termination.

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 Rio Tinto

Australian employee population for 2023 is set out in the table below.

	Lower quartile	Median	Upper quartile
2023	116	97	81
2022 1	76	52	42

1.The 2022 pay ratio data has been restated based on actual pay outcomes for the Chief

Executive in 2022.

The median CEO pay ratio of 97:1 is higher than last year, primarily due

to the vesting of Jakob’s first full LTIP award from 2019 which vested at

94.1% at the end of the 2023 performance year. The Committee

continues to be mindful of the relationship between executive

remuneration and that of our broader workforce. 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 US$m	2023	2022	Difference in spend
Remuneration paid1	6,636	6,002	634
Distributions to shareholders2	6,470	11,727	(5,257)
Purchase of property, plant and equipment, and intangible assets3	7,086	6,750	336
Corporate income tax paid3	4,627	6,909	(2,282)

1.Total employment costs for the financial year as per note 26 to the financial statements.

2.Distributions to shareholders include equity dividends paid to owners of Rio Tinto shares as

per the Group 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 Group cash flow statement.

Remuneration report continued

138 Annual Report on Form 20-F 2023 | riotinto.com

Change in director and employee pay

In the table below, we compare the annual changes in salary, benefits and annual incentives of the directors for the past four 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 taxable benefits; and values in column ‘c’ represents the percentage change in bonus outcomes for performance periods in respect of

each financial year.

2019 to 2020

2020 to 2021

2021 to 2022

2022 to 2023

a1

b

c

a1

b

c

a1

b

c

a1

b2

c3

Executive Directors

Jakob Stausholm

2%

34%

29%

46%

(19)%

25%

2%

94%

(18)%

4%

(15)%

20%

Peter Cunningham

–

–

–

–

–

–

–

18%

47%

4%

10%

28%

Non-Executive Directors

Dominic Barton4

–

–

–

–

–

–

–

–

–

50%

(84)%

–%

Megan Clark

1%

(54)%

–%

(3)%

(93)%

–%

(1)%

1,651%

–%

(1)%

52%

–%

Simon Henry

3%

(88)%

–%

–%

64%

–%

(6)%

98%

–%

(7)%

189%

–%

Sam Laidlaw

8%

(87)%

–%

–%

(51)%

–%

–%

779%

–%

–%

242%

–%

Simon McKeon

9%

(72)%

–%

15%

(91)%

–%

(6)%

1,487%

–%

6%

78%

–%

Jennifer Nason

–

–

–

–

–

–

(6)%

58%

–%

(8)%

59%

–%

Ngaire Woods

–

–

–

–

–

–

–%

273%

–%

–%

201%

–%

Ben Wyatt

–

–

–

–

–

–

12%

–%

–%

–%

52%

–%

Kaisa Hietala5

–

–

–

–

–

–

–

–

–

–

–

–

Susan Lloyd-Hurwitz5

–

–

–

–

–

–

–

–

–

–

–

–

Dean Dalla Valle5

–

–

–

–

–

–

–

–

–

–

–

–

Joc O’Rourke5

–

–

–

–

–

–

–

–

–

–

–

–

Australian workforce6

4%

5%

19%

4%

–%

(18)%

7%

6%

15%

8%

(1)%

16%

1.Change in salary and fees compared on an annualised basis to smooth the impact of part-year appointments.

2.Changes in director benefits are primarily driven by variances in business travel during the year.

3.The percentage change in annual incentive compares the incentive outcomes for the 2022 performance year to those for the 2023 performance year.

4.Increase in fees are representative of 2023 being the first full year post appointment in 2022 and reduction in benefits reflective of non-recurring benefits from appointment in 2022.

5.No prior year data as appointed as a Non-Executive Director in 2023.

6.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 pay for our Australian

employees who make up more than 40% of our employee population.

“–” in the table signifies no reported change as a result of the absence of comparable data.

Non-Executive Directors

What we paid our Chair and Non-Executive Directors

Positions held

We list the Non-Executive Directors who held office during 2023 below.

Each held office for the whole of 2023 unless otherwise indicated.

Their years of appointment are reported in “Board of Directors” on

pages 92-93.

Name	Title
Dominic Barton	Chair
Megan Clark	Non-Executive Director (to 15 December 2023)
Dean Dalla Valle	Non-Executive Director (from 1 June 2023)
Simon Henry	Non-Executive Director
Kaisa Hietala	Non-Executive Director (from 1 March 2023)
Sam Laidlaw	Non-Executive Director
Susan Lloyd-Hurwitz	Non-Executive Director (from 1 June 2023)
Simon McKeon	Non-Executive Director
Jennifer Nason	Non-Executive Director
Joc O’Rourke	Non-Executive Director (from 25 October 2023)
Ngaire Woods	Non-Executive Director
Ben Wyatt	Non-Executive Director

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 three months’ notice.

Annual fees payable

The Chair’s fee is determined by the Committee and was increased in

December 2023 with effect from 1 March 2024. Prior to this increase,

the Chair’s fee had remained unchanged since the increase in July 2013.

All other fees are subject to review by the Board on the

recommendation of the Committee.

A review of Non-Executive Director fees was undertaken in 2023.

The review supported an increase in Non-Executive Director fees

effective 1 March 2024 reflecting the significant increase in complexity

and time commitment of the Non-Executive Director roles, as well as

accounting for inflation after a freeze in fees for an extended period of

time.

The table below shows the annual fees paid in 2023 and to be paid in

2024 to the Chair and Non-Executive Directors.

	2024	2023
Director fees
Chair’s fee	£800,000	£730,000
Non-Executive Director base fee	£115,000	£95,000
Non-Executive Director base fee for Australian residents	£115,000	£105,000
Senior Independent Director	£45,000	£45,000
Committee fees
Audit & Risk Committee Chair	£50,000	£40,000
Audit & Risk Committee member	£30,000	£25,000
People & Remuneration Committee Chair	£45,000	£35,000
People & Remuneration Committee member	£25,000	£20,000
Sustainability Committee Chair	£45,000	£35,000
Sustainability Committee member	£25,000	£20,000
Nominations Committee member	£8,000	£7,500
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

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 139

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 2023 and 2022 in US dollars in table 1b on page 142. No post-

employment, termination or share-based payments were made.

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 2023 were within the current maximum

aggregate annual amount of £3 million set out in the Group’s

constitutional documents, approved by shareholders at the 2009 AGMs.

An ordinary resolution will be proposed at the 2024 AGMs seeking

shareholder approval to increase the maximum aggregate annual

amount to £4 million with effect from 1 March 2024.

Share ownership policy for Non-Executive Directors

Rio Tinto has a policy that encourages Non-Executive Directors to build

up a shareholding equal in value to one year’s base fee within three

years of their appointment. Details of Non-Executive Directors’ share

interests in the Group, including total holdings, are set out in table 2 on

page 142.

Non-Executive Directors’ share ownership

The Non-Executive Directors’ shareholdings are calculated using the

market price of Rio Tinto shares on 31 December 2023:

Director	Share ownership level at 31 December 2023 as a multiple of base fee	Share ownership level at 31 December 2022 as a multiple of base fee
Dominic Barton	1.2	1.1
Megan Clark1	4.4	3.9
Dean Dalla Valle2	0.0	N/A
Simon Henry	1.2	0.9
Kaisa Hietala3	0.3	N/A
Sam Laidlaw	4.6	4.6
Susan Lloyd-Hurwitz2	1.0	N/A
Simon McKeon	7.7	6.8
Jennifer Nason	1.1	1.1
Joc O’Rourke4	0.0	N/A
Ben Wyatt	0.3	0.2
Ngaire Woods	0.9	0.3

1.Megan Clark left the Board on 15 December 2023.

2.Dean Dalla Valle and Susan Lloyd-Hurwitz joined the Board on 1 June 2023.

3.Kaisa Hietala joined the Board on 1 March 2023.

4.Joc O’Rourke joined the Board on 25 October 2023.

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 Group 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 three-year vesting period.

Approximately 34,000 of our employees (63% 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

The Management Share Awards (MSA) are designed to help the Group

attract the best staff in a competitive labour market, and to retain key

individuals as we deliver our long-term strategy. MSA are conditional

awards that are not subject to a performance condition. They vest at the

end of three years subject to continued employment. Shares to satisfy

the awards are bought in the market or reissued from Treasury.

Executive Committee members are not eligible to be granted MSA after

appointment.

Shareholder voting

In the table below, we set out the results of the remuneration-related

resolutions voted on at the Group’s 2023 AGMs.

Resolution	Votes for	Votes against	Votes withheld1
Approval of the Directors Remuneration report: Implementation report	96%	4%	21,075,873
Approval of the Remuneration Policy (2021)	97%	3%	22,272,424
Approval of the Directors’ Remuneration report	96%	4%	21,100,383

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.

Remuneration report continued

140 Annual Report on Form 20-F 2023 | riotinto.com

Table 1a – Executives’ remuneration

Stated in US$‘0001	Short-term benefits
		Base salary	Cash bonus2	Other cash- based benefits3	Non-monetary benefits4	Total short-term benefits
Executive Directors
Jakob Stausholm	2023	1,525	860	203	129	2,717
	2022	1,456	694	199	153	2,502
Peter Cunningham	2023	903	523	116	47	1,589
	2022	866	386	151	41	1,444
Other executives
Bold Baatar	2023	824	601	105	79	1,609
	2022	760	361	114	34	1,269
Alfredo Barrios	2023	864	373	43	98	1,378
	2022	811	368	47	112	1,338
Sinead Kaufman	2023	700	408	80	91	1,279
	2022	707	340	86	52	1,185
Jérôme Pécresse	2023	170	98	537	6	811
Simon Trott	2023	772	566	90	56	1,484
	2022	749	372	93	106	1,320
Ivan Vella8	2023	616	–	70	129	815
	2022	765	286	94	102	1,247

Stated in US$’0001		Long-term benefits: Value of shared-based awards5				Post-employment benefits9
		BDA6	PSA	MSA	Others7	Pension and superannuation	Other post- employment benefits	Termination benefits	Total remuneration10	Currency of actual payment
Executive Directors
Jakob Stausholm	2023	783	2,556	–	8	10	–	–	6,074	£
	2022	701	2,020	–	7	5	–	–	5,235	£
Peter Cunningham	2023	338	691	132	7	10	–	–	2,767	£
	2022	224	342	192	6	5	–	–	2,213	£
Other executives
Bold Baatar	2023	473	1,531	–	8	10	–	–	3,631	£
	2022	419	1,360	–	7	5	–	–	3,060	£
Alfredo Barrios	2023	428	1,578	–	4	43	–	–	3,431	S$
	2022	423	1,404	–	3	97	–	–	3,265	S$
Sinead Kaufman	2023	293	856	13	3	18	–	–	2,462	A$
	2022	227	557	126	3	19	–	–	2,117	A$
Jérôme Pécresse	2023	22	–	–	–	23	–	–	856	C$
Simon Trott	2023	436	1,465	–	–	18	–	–	3,403	A$
	2022	408	1,461	–	1	19	–	–	3,209	A$
Ivan Vella8	2023	(323)	(1,003)	6	(1)	23	–	155	(328)	C$
	2022	204	695	52	4	24	–	–	2,226	C$

Notes to table 1a – Executives’ remuneration

1.“Table 1a – Executives’ remuneration” is reported in US$ using A$1 = US$0.66441; £1 = US$1.24329; C$1 = US$0.7410; S$1 = US$0.74464 which are year-to-date average rates, except for

cash bonuses which use A$1 = US$0.68605; £1 = US$1.2770; C$1 = US$0.75835; S$1 = US$0.75956 31 December 2023 year-end rates.                 

2.“Cash bonus” relates to the cash portion of the 2023 STIP award to be paid in March 2024.

3.“Other cash-based benefits” typically include cash in lieu of company pension or superannuation contributions. For Jérôme Pécresse this also includes the international transfer allowance paid as

per the company standards upon Jérôme's relocation from France to Canada.

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.

5.The “Value of share-based awards” has been determined in accordance with the recognition and measurement requirements of IFRS2 "Share-based Payment". The fair value of awards granted

as MSA, BDA and PSA 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 27 (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 2023 or the value of shares that will ultimately vest.

6.“BDA” represents the portion of the 2020–2023 STIP awards deferred into Rio Tinto shares.

7.“Others” includes the Global Employee Share Plan (myShare) and the UK Share Plan.

8.The figures for Ivan Vella reflect his remuneration up until he ceased to be a KMP on 23 October 2023. His total remuneration up until his employment termination date of 15 November 2023 was

($268,000). The negative values for his remuneration reflect the reversal of accounting costs in relation to the lapse of share awards as a result of the termination of his employment.

9.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.

10.“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 compensation for executives, including directors, are included in note 29 (Directors’ and key

management remuneration).

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 141

Table 1b – Non-Executive Directors’ remuneration

Stated in US$’0001		Fees and allowances2	Non-monetary benefits3	Post- employment benefits	Single total figure of remuneration4	Currency of actual payment	1.Remuneration is reported in US$. The amounts have been converted using the 2023 annual average exchange rates of £1 = US$1.24329 and A$1 = US$0.66441. 2.“Fees and allowances” comprises the total fees for the Chair and all Non-Executive Directors (NED), and travel allowances for the NED. The statutory minimum superannuation contributions required by the Australian superannuation law and paid for the Australia based NED are included in “Fees and allowances”. 3.“Non-monetary benefits” include, as in previous years, amounts that are deemed by the UK tax authorities to be benefits in kind relating largely to the costs of directors’ expenses in attending Board meetings held at the company’s UK registered office (including associated accommodation and subsistence expenses) and professional tax compliance services/advice. Given these expenses are incurred by directors in the fulfilment of their duties, the company pays the tax on them. 4.Represents disclosure of the single total figure of remuneration under Schedule 8 of the Large- and Medium- sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended) and total remuneration under the Australian Corporations Act 2001 and applicable accounting standards. 5.The amounts reported for Dean Dalla Valle and Susan Lloyd- Hurwitz reflect the period of active Board memberships from 1 June 2023 to 31 December 2023. 6.The amounts reported for Kaisa Hietala reflect the period of active Board memberships from 1 March 2023 to 31 December 2023. 7.The amounts reported for Joc O’Rourke reflect the period of active Board memberships from 25 October 2023 to 31 December 2023.
Chair
Dominic Barton	2023	908	30	–	938	£
	2022	600	192		792	£
Non-Executive Directors
Megan Clark	2023	222	8	24	254	A$
	2022	221	2	23	246	A$
Dean Dalla Valle5	2023	109	6	10	125	A$
Simon Henry	2023	221	3	–	224	£
	2022	202	4	–	206	£
Kaisa Hietala6	2023	163	18	–	181	£
Sam Laidlaw	2023	308	5	–	313	£
	2022	263	5	–	268	£
Susan Lloyd-Hurwitz5	2023	114	3	9	126	A$
Simon McKeon	2023	302	7	–	309	A$
	2022	275	3	–	278	A$
Jennifer Nason	2023	202	6	–	208	£
	2022	196	4	–	200	£
Joc O’Rourke7	2023	23	–	–	23	£
Ngaire Woods	2023	221	5	–	226	£		For more information further details in relation to aggregate compensation for executives, including directors, are included in note 29 (Directors’ and key management remuneration).
	2022	188	9	–	197	£
Ben Wyatt	2023	220	10	–	230	A$
	2022	203	4	4	211	A$

Table 2 – Directors’ and executives’ beneficial interests in Rio Tinto shares

	Rio Tinto plc1			Rio Tinto Limited			Movements
	1 Jan 20232	31 Dec 20233	7 Feb 20244	1 Jan 20232	31 Dec 20233	7 Feb 20244	Compensation5	Other6
Directors
Dominic Barton	–	–	–	11,900	11,900	11,900	–	–
Megan Clark7	–	–	N/A	6,370	6,370	N/A	–	–
Peter Cunningham	52,815	63,053	63,065	–	–	–	16,173	(5,923)
Dean Dalla Valle8	–	–	–	–	–	–	–	–
Simon Henry	1,500	2,000	2,000	–	–	–	–	500
Kaisa Hietala8	–	500	500	–	–	–	–	500
Sam Laidlaw	7,500	7,500	7,500	–	–	–	–	–
Susan Lloyd-Hurwitz8	–	–	–	–	1,380	1,380	–	1,380
Simon McKeon	–	–	–	10,000	10,000	10,000	–	–
Jennifer Nason	1,765	1,765	1,765	–	–	–	–	–
Joc O'Rourke8	–	–	–	–	–	–	–	–
Jakob Stausholm	56,337	95,363	95,389	–	–	–	52,047	(12,995)
Ngaire Woods	572	1,482	1,482	–	–	–	–	910
Ben Wyatt	–	–	–	300	400	400	–	100
Executives
Bold Baatar	76,111	61,216	61,242	–	–	–	93,458	(108,327)
Alfredo Barrios	62,392	47,888	47,922	–	–	–	98,601	(113,071)
Sinead Kaufman	–	–	–	39,511	43,633	43,633	15,232	(11,109)
Jérôme Pécresse	–	5,000	5,000	–	–	–	–	5,000
Simon Trott	9,780	19,338	19,338	26,006	26,090	26,090	85,161	(75,519)
Ivan Vella7	94	160	N/A	17,569	23,986	N/A	19,997	(13,513)

1.Rio Tinto plc ordinary shares or American depositary receipts.

2.Or date of appointment, if later.

3.Or date of cessation as director or KMP, if earlier.

4.Latest practicable date prior to the publication of the 2023 Annual Report, in accordance with LR 9.8.6 R(1).

5.Shares obtained through awards under the Rio Tinto UK Share Plan, the Global Employee Share Plan and/or vesting of PSA, MSA and BDA granted under the Group’s LTIP and STIP deferral

arrangements.

6.Share movements due to the sale or purchase of shares, or shares received under dividend reinvestment plans.

7.Ivan Vella ceased to be a KMP effective 23 October 2023 and Megan Clark ceased to be a Non-Executive Director on 15 December 2023.

8.Kaisa Hietala was appointed Non-Executive Director on 1 March 2023, Dean Dalla Valle and Susan Lloyd-Hurwitz were appointed Non-Executive Director on 1 June 2023 and Joc O’Rourke was

appointed Non-Executive Director on 25 October 2023.

Interests in outstanding BDA, MSA and PSA, and UK Share Plan and the Global Employee Share Plan are set out in table 3 and 3a

(see pages 143-145).

Remuneration report continued

142 Annual Report on Form 20-F 2023 | riotinto.com

Table 3 – Plan interests (awards of shares under long-term incentive plans)

Name

Award/ grant date

Market price at award1,2

1 January 2023

Awarded

Lapsed/ cancelled

Dividend units

Vested

31 December 2023

7 February 2024

Vesting period concludes

Date of release

Market price at release

Market value of award at release US$3

Bold Baatar

Bonus Deferral Awards

18 Mar 2021

£55.58

6,583

–

–

1,575

(8,158)

–

–

1 Dec 2023

1 Dec 2023

£55.57

563,631

23 Mar 2022

£58.00

6,956

–

–

–

–

6,956

6,956

1 Dec 2024

–

–

–

22 Mar 2023

£53.19

–

5,463

–

–

–

5,463

5,463

1 Dec 2025

–

–

–

Performance Share Awards4

15 May 2018

£42.30

63,039

–

–

22,104

(85,143)

–

–

31 Dec 2022

23 Feb 2023

£59.22

6,268,859

18 Mar 2019

£42.67

51,752

–

–

–

–

51,752

51,752

31 Dec 2023

–

–

–

16 Mar 2020

£33.58

53,272

–

–

–

–

53,272

53,272

31 Dec 2024

–

–

–

18 Mar 2021

£55.58

54,005

–

–

–

–

54,005

54,005

31 Dec 2025

–

–

–

23 Mar 2022

£58.00

44,414

–

–

–

–

44,414

44,414

31 Dec 2026

–

–

–

22 Mar 2023

£53.19

–

50,672

–

–

–

50,672

50,672

31 Dec 2027

–

–

–

Alfredo Barrios

Bonus Deferral Awards

18 Mar 2021

£55.58

7,497

–

–

1,794

(9,291)

–

–

1 Dec 2023

1 Dec 2023

£55.57

641,910

23 Mar 2022

£58.00

6,466

–

–

–

–

6,466

6,466

1 Dec 2024

–

–

–

22 Mar 2023

£53.19

–

5,549

–

–

–

5,549

5,549

1 Dec 2025

–

–

–

Performance Share Awards4

15 May 2018

£42.30

66,050

–

–

23,159

(89,209)

–

–

31 Dec 2022

23 Feb 2023

£59.22

6,568,228

18 Mar 2019

£42.67

57,011

–

–

–

–

57,011

57,011

31 Dec 2023

–

–

–

16 Mar 2020

£33.58

53,236

–

–

–

–

53,236

53,236

31 Dec 2024

–

–

–

18 Mar 2021

£55.58

54,652

–

–

–

–

54,652

54,652

31 Dec 2025

–

–

–

23 Mar 2022

£58.00

43,707

–

–

–

–

43,707

43,707

31 Dec 2026

–

–

–

22 Mar 2023

£53.19

–

51,626

–

–

–

51,626

51,626

31 Dec 2027

–

–

–

Peter Cunningham

Bonus Deferral Awards

18 Mar 2021

£55.58

1,402

–

–

335

(1,737)

–

–

1 Dec 2023

1 Dec 2023

£55.57

120,008

23 Mar 2022

£58.00

5,203

–

–

–

–

5,203

5,203

1 Dec 2024

–

–

–

22 Mar 2023

£53.19

–

5,827

–

–

–

5,827

5,827

1 Dec 2025

–

–

–

Management Share Awards

16 Mar 2020

£33.58

3,713

–

–

838

(4,551)

–

–

23 Feb 2023

23 Feb 2023

£59.22

335,078

18 Mar 2021

£55.58

4,781

–

–

–

–

4,781

4,781

22 Feb 2024

–

–

–

Performance Share Awards4

15 May 2018

£42.30

7,229

–

–

2,534

(9,763)

–

–

31 Dec 2022

23 Feb 2023

£59.22

718,824

18 Mar 2019

£42.67

6,489

–

–

–

–

6,489

6,489

31 Dec 2023

–

–

–

16 Mar 2020

£33.58

7,426

–

–

–

–

7,426

7,426

31 Dec 2024

–

–

–

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

–

–

–

Sinead Kaufman

Bonus Deferral Awards

18 Mar 2021

A$110.80

1,408

–

–

269

(1,677)

–

–

1 Dec 2023

1 Dec 2023

A$124.69

138,932

23 Mar 2022

A$113.68

4,711

–

–

–

–

4,711

4,711

1 Dec 2024

–

–

–

22 Mar 2023

A$115.45

–

4,278

–

–

–

4,278

4,278

1 Dec 2025

–

–

–

Management Share Awards

16 Mar 2020

A$77.65

4,289

–

–

871

(5,160)

–

–

23 Feb 2023

23 Feb 2023

A$122.58

420,249

Performance Share Awards4

15 May 2018

A$83.61

6,322

–

–

2,002

(8,324)

–

–

31 Dec 2022

23 Feb 2023

A$122.58

677,937

18 Mar 2019

A$93.32

6,291

–

–

–

–

6,291

6,291

31 Dec 2023

–

–

–

16 Mar 2020

A$77.65

8,579

–

–

–

–

8,579

8,579

31 Dec 2024

–

–

–

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

–

–

–

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 143

Name

Award/ grant date

Market price at award1,2

1 January 2023

Awarded

Lapsed/ cancelled

Dividend units

Vested

31 December 2023

7 February 2024

Vesting period concludes

Date of release

Market price at release

Market value of award at release US$3

Jakob Stausholm

Bonus Deferral Awards

18 Mar 2021

£55.58

9,680

–

–

2,316

(11,996)

–

–

1 Dec 2023

1 Dec 2023

£55.57

828,797

23 Mar 2022

£58.00

13,017

–

–

–

–

13,017

13,017

1 Dec 2024

–

£–

–

22 Mar 2023

£53.19

–

10,488

–

–

–

10,488

10,488

1 Dec 2025

–

£–

–

Performance Share Awards4

10 Sep 2018

£35.16

29,886

–

–

10,008

(39,894)

–

–

31 Dec 2022

23 Feb 2023

£59.22

2,937,292

18 Mar 2019

£42.67

79,609

–

–

–

–

79,609

79,609

31 Dec 2023

–

–

–

16 Mar 2020

£33.58

74,711

–

–

–

–

74,711

74,711

31 Dec 2024

–

–

–

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

–

–

–

Simon Trott

Bonus Deferral Awards

18 Mar 2021

£55.58

6,392

–

–

1,529

(7,921)

–

–

1 Dec 2023

1 Dec 2023

£55.57

547,257

23 Mar 2022

A$113.68

5,494

–

–

–

–

5,494

5,494

1 Dec 2024

–

–

–

22 Mar 2023

A$115.45

–

4,683

–

–

–

4,683

4,683

1 Dec 2025

–

–

–

Performance Share Awards4

15 May 2018

£42.30

57,188

–

–

20,052

(77,240)

–

–

31 Dec 2022

23 Feb 2023

£59.22

5,686,981

18 Mar 2019

£42.67

50,598

–

–

–

–

50,598

50,598

31 Dec 2023

–

–

–

16 Mar 2020

£33.58

52,838

–

–

–

–

52,838

52,838

31 Dec 2024

–

–

–

18 Mar 2021

£55.58

49,571

–

–

–

–

49,571

49,571

31 Dec 2025

–

–

–

23 Mar 2022

A$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

–

–

–

Ivan Vella5

Bonus Deferral Awards

18 Mar 2021

£55.58

1,525

–

(1,525)

–

–

–

–

1 Dec 2023

–

–

–

23 Mar 2022

£58.00

5,288

–

(5,288)

–

–

–

–

1 Dec 2024

–

–

–

22 Mar 2023

£53.19

–

4,261

(4,261)

–

–

–

–

1 Dec 2025

–

–

–

Management Share Awards

16 Mar 2020

A$77.65

1,931

–

–

392

(2,323)

–

–

23 Feb 2023

23 Feb 2023

A$122.58

189,194

Performance Share Awards4

15 May 2018

A$83.61

13,376

–

–

4,237

(17,613)

–

–

31 Dec 2022

23 Feb 2023

A$122.58

1,434,467

18 Mar 2019

A$93.32

8,570

–

(8,570)

–

–

–

–

31 Dec 2023

–

–

–

16 Mar 2020

A$77.65

3,862

–

(3,862)

–

–

–

–

31 Dec 2024

–

–

–

18 Mar 2021

£55.58

51,025

–

(51,025)

–

–

–

–

31 Dec 2025

–

–

–

23 Mar 2022

£58.00

41,731

–

(41,731)

–

–

–

–

31 Dec 2026

–

–

–

22 Mar 2023

£53.19

–

48,648

(48,648)

–

–

–

–

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 BDA and MSA granted in March 2023 was £52.85 and £52.80 respectively for Rio Tinto plc and A$114.28 and A$114.17 for Rio Tinto Limited and for PSA was

£28.41 for Rio Tinto plc and A$61.66 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$0.80432 = £1 and US$1.50509 = A$1, being the average exchange rates for 2023.

4.For the PSA granted on 18 March 2019 with a performance period that concluded on 31 December 2023, 94.1% of the award vested.

5.Ivan Vella ceased to be a KMP effective 23 October 2023 and his employment with Rio Tinto terminated on 15 November 2023. All unvested awards held were lapsed.

6.The closing price at 31 December 2023 was £58.42 for Rio Tinto plc shares and was A$135.66 for Rio Tinto Limited shares. The high and low prices during 2023 of Rio Tinto plc and Rio Tinto

Limited shares were £64.06 and £45.09 and A$136.65 and A$102.51 respectively.

7.As of 7 February 2024, the above members of the Executive Committee held 1,530,214 shares awarded and not vested under the LTIP and STIP deferral arrangements. No Executive Committee

member held any options.

Remuneration report continued

144 Annual Report on Form 20-F 2023 | riotinto.com

Table 3a – Plan interests (award of shares under all-employee share arrangements)

		myShare		UK Share Plan				Total activity in 2023
	Plan interests at 1 January 20231	Value of Matching shares awarded in year2 (U$‘000)	Value of Matching shares vested in year3 (U$‘000)	Value of Matching shares awarded in year2 (U$‘000)	Value of Matching shares vested in year3 (U$‘000)	Value of Free shares awarded in year4 (U$‘000)	Value of Free shares vested in year4 (U$‘000)	Grants in year (U$‘000)	Vesting in year (U$‘000)	Plan interests at 31 December 20231
Bold Baatar	388.5	2	3	2	2	4	6	8	11	357.6
Alfredo Barrios	196.4	5	6	0	0	0	0	5	6	205.4
Peter Cunningham	300.5	2	3	0	0	4	6	6	9	274.6
Sinead Kaufman	158.7	4	6	0	0	0	0	4	6	148.8
Jakob Stausholm	388.5	2	3	2	2	4	6	8	11	357.6
Simon Trott5	0	0	0	0	0	0	0	0	0	0.0
Ivan Vella	152.9	4	5	0	0	0	0	4	5	0.0

1.All shares shown are Rio Tinto plc shares except in the case of Sinead Kaufman which are Rio Tinto Limited shares. Ivan Vella held a combination of Rio Tinto plc and Rio Tinto Limited shares.

2.myShare and UK Share Plan Matching share awards are granted on a quarterly basis (in 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 three years.

4.UK Share Plan Free shares vest after three years.

5.Simon Trott suspended participation in myShare effective October 2019, resulting in no activity during 2023.

6.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.

7.The value of shares is rounded.

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:

Sam Laidlaw

People & Remuneration Committee Chair

21 February 2024

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 145

Additional statutory disclosure

The Directors present their report and audited consolidated financial

statements for the year ended 31 December 2023.

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

347-353 are hereby incorporated by

reference to, and form part of, this Directors’

report.

–The Strategic report on pages 1-89 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 24 to the Group 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 113-145,

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 347-348.

Operating and financial review

Rio Tinto’s principal activities during 2023

were mining minerals and metals throughout

the lifecycle from exploration, development,

mining and processing, marketing, and

repurposing and renewing our assets to create

a positive legacy.

Subsidiaries, joint operations, joint ventures

and associated undertakings, principally

affecting the profits or net assets of the Group

in the year, are listed in notes 30-32 to the

financial statements.

The following significant changes and events

affected the Group during 2023 and up to the

date of this report:

–In February 2023, we released our 2022

Climate Change Report, including our

Climate Action Plan, to the Australian

Securities Exchange.

–In February 2023, we announced changes

to the estimates of MineralReserves at

Rio Tinto Kennecott copper operations’

Bingham Canyon deposit in Utah; Mineral

Resources at Winu copper project in

Western Australia; Mineral Resources at

QIT Madagascar Minerals’ Petriky mineral

sands deposit in Madagascar; and Mineral

Reserves at Richards Bay’s Minerals Zulti

South mineral sands deposit in

South Africa.

–In March 2023, we resolved a previously

self-disclosed investigation by the U.S.

Security Exchange Commission (SEC) into

certain contractual payments made to a

former consultant in 2011, relating to the

Simandou project in the Republic of Guinea.

Without admitting to or denying the SEC's

findings, Rio Tinto paid a $15 million civil

penalty for violations of the books and

records and internal controls provisions of

the US Foreign Corrupt Practices Act. This

payment did not have a significant effect on

Rio Tinto's financial position or profitability.

–In March 2023, we priced US$650 million of

ten-year fixed rate SEC-registered debt

securities and US$1.1 billion of 30-year

fixed rate SEC-registered debt securities.

The bonds were issued by Rio Tinto

Finance (USA) plc and are fully and

unconditionally guaranteed by Rio Tinto plc

and Rio Tinto Limited. The ten-year notes

will pay a coupon of 5.000% and will mature

on 9 March 2033 and the 30-year notes will

pay a coupon of 5.125% and will mature on

9 March 2053.

–In March 2023, we announced the

appointment of Dean Dalla Valle and

Susan Lloyd-Hurwitz to the Board as

Non-Executive Directors. Mr Dalla Valle and

Ms Lloyd-Hurwitz, both Australian citizens,

joined the Board on 1 June 2023.

–In March 2023, we announced that we and

First Quantum Minerals entered into an

agreement to form a joint venture that

will work to unlock the development of

the La Granja copper project in Peru.

The transaction was expected to be

completed by Q3 of 2023.

–In April 2023, we announced we supported

Energy Resources of Australia Ltd's (ERA)

plans for an Interim Entitlement Offer (IEO),

which seeks to raise up to A$369 million to

address funding requirements for the

Ranger Rehabilitation Project in Australia's

Northern Territory to the end of Q2 2024.

Rio Tinto, which owns 86.3% of ERA's

shares, pre-committed to subscribe for its

full entitlements under the terms of the IEO,

at a cost of A$319 million.

–In May 2023, we announced that we had

published our report on payments to

governments made by Rio Tinto plc and its

subsidiary undertakings for the year ended

31 December 2022, as required under the

UK’s Report on Payments to Governments

Regulations 2014 (as amended in

December 2015), and it had been filed at

Companies House. We paid US$10.8 billion

of taxes and royalties and a further

US$1.6 billion on behalf of our employees

during 2022.

–In June 2023, we announced we will invest

$1.1 billion to expand our state-of-the-art

AP60 aluminium smelter equipped with low-

carbon technology at Complexe Jonquière

in Canada. The total investment includes up

to $113 million of financial support from the

Quebec government. This expansion, which

will coincide with the gradual closure of

potrooms at the Arvida smelter on the same

site, will enable Rio Tinto to continue to

meet customers’ demands for low-carbon,

high-quality aluminium for use in

transportation, construction, electrical

and consumer goods.

–In June 2023, we announced that we had

an approved investment of $498 million to

deliver underground development and

infrastructure for an area known as the

North Rim Skarn at our Kennecott operation

in Utah. Production will commence in 2024

and is expected to ramp up over two years,

to deliver around 250 thousand tonnes1 of

additional mined copper over the next ten

years alongside open cut operations. This

investment will strengthen the supply of

copper in the US by increasing production

from underground mining and improving the

health of key assets.

1.The production target of around 250 thousand tonnes of additional mined copper over the next ten years (2023 to 2033) at Kennecott was previously reported in a release to the Australian

Securities Exchange (ASX) dated 20 June 2023 titled “Rio Tinto invests to strengthen copper supply in US”. Rio Tinto confirms that all material assumptions underpinning that production target

continue to apply and have not materially changed.

146 Annual Report on Form 20-F 2023 | riotinto.com

–In July 2023, we announced that we

had entered into an agreement with 

Giampaolo Group to form a joint venture to

manufacture and market recycled

aluminium products with Rio Tinto acquiring

a 50% equity stake in Matalco business for

$700 million1.

–In July 2023, we hosted an investor visit to

the Oyu Tolgoi copper mine in Mongolia, set

to be the world’s fourth largest mine

by 2030.

–In August 2023, we announced that we and

the Simfer joint venture had reached an

important milestone by concluding key

agreements with the Republic of Guinea

and Winning Consortium Simandou on the

trans-Guinean infrastructure for the world

class Simandou iron ore project.

–In August 2023, we announced that we and

First Quantum Minerals completed the

transaction to form a joint venture that will

work to unlock the development of the La

Granja project in Peru, one of the largest

undeveloped copper deposits in the world.

First Quantum acquired a 55% stake in the

project for $105 million, and committed to

further invest up to $546 million into the joint

venture to solely fund capital and

operational costs to take the project through

a feasibility study and toward development.

–In October 2023, we hosted an investor tour

to our Pilbara iron ore operations in Western

Australia. We showcased our world class

ports, autonomous rail network and 17

mines, including our newest mine Gudai-

Darri, and the Rhodes Ridge project, one of

the world’s largest and highest quality

undeveloped iron ore deposits.

–In October 2023, we announced the

appointment of Joc O’Rourke to the Board

as Non-Executive Director. Mr O’Rourke, a

dual Canadian/Australian national, joined

the Board on 25 October 2023.

–In November 2023, we reached a court

approved settlement with SEC related to the

disclosure of the impairment of Rio Tinto

Coal Mozambique reflected in the 2012

year-end accounts.

–In December 2023, we announced completion

of the Matalco joint venture, combining the

strengths of North America's largest primary

and secondary aluminium producers to meet

the growing demand from manufacturers for

low carbon materials. Following the receipt of

all regulatory approvals, Rio Tinto has

acquired a 50% equity stake in the Matalco

business from Giampaolo Group for $738

million.

–In December 2023, we provided an update

on the Simandou project, which is being

progressed through the Simfer joint venture

in partnership with Chalco Iron Ore

Holdings (CIOH), a Chinalco-led consortium

and the Republic of Guinea. First production

from the Simfer mine is expected in 2025,

ramping up over three months to an

annualised capacity of 60 million tonnes

per year.2

–In December 2023, we hosted an investor

seminar in Sydney where we gave an

update on progress in our long-term

strategy of investing. Executives also

outlined the progress that was made in

2023, which has been a pivotal year in the

Group’s copper production.

–In December 2023, Megan Clark stepped

down as Non-Executive Director.

–In December 2023, Martina Merz and

Sharon Thorne were appointed as Non-

Executive Directors. Martina Merz joined

the Board on 1 February 2024 and Sharon

Thorne will join on 1 July 2024. 

–In December 2023 we published our

Country by Country Report for 2022,

supplementing the comprehensive

disclosures in our 2022 Taxes and Royalties

Paid Report to disclose associated financial

information on a country by country basis

for all countries where we had a taxable

presence in 2022.

For more information visit riotinto.com/invest.

In 2023 and 2022, the Group did not receive

any public takeover offers from third parties in

respect of Rio Tinto plc shares or Rio Tinto

Limited shares. In 2022, Rio Tinto made, had

accepted and completed a takeover offer for

all of the remaining shares of Turquoise Hill

Resources (TRQ) that we did not own.

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 risk factors are listed on pages

81-88. The Group’s approach to risk

management is discussed on pages 79-80.

Share capital

Details of the Group’s share capital as at

31 December 2023 are described in note 34 to

the financial statements. Details of the rights

and obligations attached to each class of

shares are covered on pages 347-348, 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 348 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 shares held

under certain employee share plans while

they remain subject to the plan.

At the AGMs held in 2023, shareholders

authorised:

–The on-market purchase by Rio Tinto plc or

Rio Tinto Limited or its subsidiaries of up to

125,083,217 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 125,083,217 Rio Tinto plc shares

acquired by Rio Tinto Limited or its

subsidiaries under the above authority.

–The off-market and/or 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 349.

Dividends

Details of dividends paid and declared for

payment, together with the company’s

shareholder returns policy, can be found on

page 29.

Directors and executives

The names of Directors and their periods of

appointment are listed on pages 92-93,

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 2023 is on

page 104.

Previous listed directorships

Details of each Director’s previous

directorships of other listed companies (where

relevant) held in the past three years are set

out below:

Martina Merz: thyssenkrupp AG (February

2019-June 2023)

Directors’ and executives’ beneficial interests

A table of Directors’ and executives’ beneficial

interests in Rio Tinto shares is on page 142.

Secretaries

Andy Hodges is Group Company Secretary

and Company Secretary of Rio Tinto plc. Tim

Paine is the Company Secretary of Rio Tinto

Limited. Andy’s and Tim’s qualifications and

experience are described on page 93.

1.This figure is subject to closing adjustments.

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.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 147

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 2023 and up to the date of this

report. During 2023, Rio Tinto paid legal costs

under the terms of those indemnities for

certain former Directors and officers totalling

$1,878,654.

Qualifying pension scheme indemnity

provisions (as defined by section 235 of the

UK Companies Act 2006 and other applicable

legal jurisdictions) were in force during the

course of the financial year ended 31

December 2023 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.

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 2023, we had no union

industrial actions.

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 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.

Engagement with UK employees

Our statement on engagement with UK

employees is on page 96-97.

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

page 98-99.

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

110,774 Rio Tinto plc ordinary shares and

31,831 American depository receipts (ADRs)

for the 2022 final dividend, and on 99,016

Rio Tinto plc ordinary shares and 35,066

ADRs for the 2023 interim dividend. (2021: on

194,321 Rio Tinto plc ordinary shares and

30,162 ADRs for the 2021 final dividend and

on 111,443 Rio Tinto plc ordinary shares and

35,132 ADRs for the 2023 interim dividend;

2021: on 101,752 Rio Tinto plc ordinary

shares and 27,873 ADRs for the 2020 final

dividend and on 91,008 Rio Tinto plc ordinary

shares and 27,501 ADRs for the 2021 interim

dividend). In 2023, 2022 and 2021, 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 35,010 Rio Tinto Limited

ordinary shares for the 2022 final dividend and

on 34,607 shares for the 2023 interim dividend

(2022: on 36,517 shares for the 2021 final

dividend and 31,368 shares for the 2022

interim dividend; 2021: on 45,250 shares for

the 2020 final dividend and 33,531 shares for

the 2021 interim dividend).

Additional statutory disclosure continued

148 Annual Report on Form 20-F 2023 | riotinto.com

Purchases

Rio Tinto plc shares of 10p each and Rio Tinto plc American Depositary Receipts (ADRs)

	Total number of shares purchased1	Average price per share US$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
2023
1 to 31 Jan	–	–	–	–	–	124,921,5735
1 to 28 Feb	–	–	–	–	–	124,921,5735
1 to 31 Mar	–	–	–	–	–	124,921,5735
1 to 30 Apr	586,662	67.61	393,248	193,414	–	125,083,2176
1 to 31 May	56,348	61.77	–	56,348	–	125,083,2176
1 to 30 Jun	–	–	–	–	–	125,083,2176
1 to 31 Jul	–	–	–	–	–	125,083,2176
1 to 31 Aug	–	–	–	–	–	125,083,2176
1 to 30 Sep	503,079	63.37	342,910	160,169	–	125,083,2176
1 to 31 Oct	28,991	61.54	–	28,991	–	125,083,2176
1 to 30 Nov	–	–	–	–	–	125,083,2176
1 to 31 Dec	–	–	–	–	–	125,083,2176
Total	1,175,0804	65.36	736,158	438,922	–	–
2024
1 to 31 Jan	–	–	–	–	–	125,083,2176
1 to 07 Feb	–	–	–	–	–	125,083,2176

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
2023
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	733,797	77.39	572,918	160,879	–	55,600,0008
1 to 31 May	41,021	71.54	–	41,021	–	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	595,223	73.31	459,671	135,552	–	55,600,0009
1 to 31 Oct	167,043	71.79	–	167,043	–	55,600,0009
1 to 30 Nov	–	–	–	–	–	55,600,0009
1 to 31 Dec	705,351	90.06	–	705,351	–	55,600,0009
Total	2,242,436	79.77	1,032,589	1,209,847	–	–
2024
1 to 31 Jan	–	–	–	–	–	55,600,0009
1 to 07 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 0.0936% of Rio Tinto plc issued share capital at 31 December 2023.

5.At the Rio Tinto plc AGM held in 2022, shareholders authorised the on-market purchase by Rio Tinto plc, and Rio Tinto Limited and its subsidiaries of up to 124,921,573 Rio Tinto plc shares.

This authorisation expired at the 2023 AGM on 6 April 2023.

6.At the Rio Tinto plc AGM held in 2023, shareholders authorised the on-market purchase by Rio Tinto plc, and Rio Tinto Limited and its subsidiaries of up to 125,083,217 Rio Tinto plc shares.

This authorisation will expire on the later of 5 July 2024 or the date of the 2024 AGM.

7.The average price of shares purchased on-market by the trustee of Rio Tinto Limited’s employee share trust during 2023 was $82.77.

8.At the Rio Tinto Limited AGM held in 2022, shareholders authorised the off-market and/or on-market buy-back of up to 55.6 million Rio Tinto Limited shares.

9.At the Rio Tinto Limited AGM held in 2023, shareholders authorised the off-market and/or on-market buy-back of up to 55.6 million Rio Tinto Limited shares.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 149

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

five employee members on a voluntary basis. In

2023, contributions to Rio Tinto America PAC by

12 employees amounted to $10,425 and

Rio Tinto America PAC donated $17,500 in

political contributions in 2023.

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

five 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 2023, there were one

environmental incidents at managed

operations with a high impact.

During 2023, eight managed operations

incurred fines amounting to $986,968 (2022:

$109,782). Details of these fines are reported

in the Our approach to ESG section on

page 63.

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 2023 deadline.

Further information on the Group’s environmental

performance is included in the Our approach to

ESG section on pages 44-58, and at riotinto.com/

sustainabilityreporting.

Energy efficiency action

Details of the measures taken to increase the

company’s energy efficiency are reported on

pages 45-58.

Energy consumption1, 2, 3

Energy consumption in GWh	2023	20225
From activities including the combustion of fuel and the operation of facilities	85,463	84,619
From the net purchase of electricity, heat, steam or cooling	27,421	25,065
Total energy consumed4	112,884	109,684

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.

3.Data reported is 100% managed basis, without adjustment

for equity interest. 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

	2023	202213
Scope 19	23.3	22.7
Scope 210	9.3	9.6
Net GHG emissions11	32.6	32.314
Operational emissions intensity (tCO2e/t Cu-eq)(equity)12	6.8	7.0

6.Rio Tinto’s GHG emissions for our operations (RT share:

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.

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.In 2023, Rio Tinto reviewed all Scope 2 emissions sources

and transitioned to a dual Scope 2 reporting method.

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. 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 GHG emissions are

GHG emissions from the electricity, heat or steam brought

in from third parties (indirect emissions). 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.  Scope 2 emissions are presented on

equity share basis, for market-based reporting Scope 2

includes the use of renewable electricity certificates.

11.Total emissions are the sum of Scope 1 and Scope 2

emissions. These emissions exclude indirect emissions

associated with transportation and use of our products 

reported under Scope 3 emissions at riotinto.com.

12.Historical information for copper equivalent intensity has

been restated in line with the 2023 review of commodity

pricing to allow comparability over time.

13.Numbers restated from those originally published to

ensure comparability over time using market-based

method for Scope 2 reporting.

14.Actual 2022 emissions. To evaluate our progress against our

targets, we also disclose adjusted 2022 Scope 1 and 2

emissions on a baseline equivalent basis of 32.7Mt CO2e.

Exploration, research and development

The Group carries out exploration, research

and development as described in the product

group pages on pages 32-39. Exploration and

evaluation costs, net of any gains and losses

on disposal, generated a net loss before tax of

$1,230 million (2022: $896 million). Research

and development costs were $245 million

(2022: $76 million).

Financial instruments

Details of the Group’s financial risk

management objectives and policies, and

exposure to risk, are described in note 24 to

the financial statements.

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

Financial statements

The Directors are required to prepare financial

statements for each financial period that give a

true and fair view of the state of the Group at

the end of the financial period, together with

profit or loss and cash flows for that period.

This includes preparing financial statements in

accordance with UK-adopted international

accounting standards, applicable UK law

(Companies Act 2006), Australian law

(Corporations Act 2001) as amended by the

ASIC class order and preparing a

Remuneration report that includes the

information required by Regulation 11,

Schedule 8 of the Large and Medium-sized

Companies and Groups (Accounts and

Reports) Regulations 2008 (as amended) and

the Australian Corporations Act 2001.

In addition, the UK Corporate Governance

Code recommends that the Board provide a

fair, balanced and understandable assessment

of the company’s position and prospects in its

external reporting.

Rio Tinto’s management conducts extensive

review and challenge in support of the Board’s

obligations, aiming to strike a balance

between positive and negative statements and

provide good linkages throughout this Form

20-F.

Additional statutory disclosure continued

150 Annual Report on Form 20-F 2023 | riotinto.com

The Directors were responsible for the

preparation and approval of the Annual Report

for the year ended 31 December 2023. They

consider the Annual Report, taken as a whole,

to be fair, balanced and understandable, and

that it provides the information necessary for

shareholders to assess the Group’s position,

performance, business model and strategy.

The Directors are responsible for maintaining

proper accounting records, in accordance with

UK and Australian legislation. They have a

general responsibility to safeguard the assets

of the Group, and to prevent and detect fraud

and other irregularities. The Directors are also

responsible for ensuring that appropriate

systems are in place to maintain and preserve

the integrity of the Group’s website.

Legislation in the UK governing the

preparation and dissemination of financial

statements may differ from current and future

legislation in other jurisdictions. The work

carried out by the Group’s external auditors

does not take into account such legislation

and, accordingly, the external auditors accept

no responsibility for any changes to the

financial statements after they are made

available on the Group’s website.

The Directors, senior executives, senior

financial managers and other members of staff

who are required to exercise judgement while

preparing the Group’s financial statements,

are required to conduct themselves with

integrity and honesty, and in accordance with

the highest ethical standards, as are all Group

employees.

The Directors consider that the 2023 Annual

Report presents a true and fair view and has

been prepared in accordance with applicable

accounting standards, using the most

appropriate accounting policies for Rio Tinto’s

business, and supported by reasonable

judgements and estimates. The accounting

policies have been consistently applied as

described on pages 158-167, and Directors

have received a written statement from the

Chief Executive and the Chief Financial Officer

to this effect. In accordance with the internal

control requirements of the Code and the ASX

Principles, this written statement confirms that

the declarations in the statement are founded

on a sound system of risk management and

internal controls, and that the system is

operating effectively in all material respects in

relation to financial reporting risks.

Disclosure controls and procedures

The Group maintains disclosure controls and

procedures, as defined in US Securities

Exchange Act of 1934 (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

effective at a reasonable assurance level.

Management’s report on internal control over

financial reporting

Management is responsible for establishing

and maintaining adequate internal controls

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 controls 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.

Due to inherent limitations, internal controls

over financial reporting cannot provide

absolute assurance. Similarly, these controls

may not prevent or detect all misstatements,

whether caused by error or fraud, within each

of Rio Tinto plc and Rio Tinto Limited.

There were no changes to internal controls

over financial reporting during the relevant

period that have materially affected, or were

reasonably likely to materially affect, the

internal control over financial reporting of

Rio Tinto plc and Rio Tinto Limited.

Management’s evaluation of the effectiveness

of the company’s internal controls 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. Following this evaluation,

management concluded that our internal

controls over financial reporting were effective

as at 31 December 2023.

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

pages 109-110 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 80.

2024 annual general meetings

The 2024 AGMs will be held on 4 April in

London, UK and 2 May in Brisbane, Australia.

Separate notices of the 2024 AGMs will be

produced for the shareholders of

each company.

Directors’ approval statement

The Directors’ report is delivered in

accordance with a resolution of the Board.

Dominic Barton

Chair

21 February 2024

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 151

Compliance with governance codes and standards

Application of and compliance with

governance codes and standards

This section sets out our compliance with the

applicable governance codes and standards.

As our shares are listed on both the Australian

Securities Exchange (ASX) and the London

Stock Exchange (LSE), we set out how we

have complied with the codes and standards

of those bodies on the following pages:

London Stock Exchange – UK Corporate

Governance Code (2018 version) (the UK

Code), see pages 152-154.

Australian Securities Exchange – ASX

Corporate Governance Council’s Corporate

Governance Principles and Recommendations

(4th edition) (the ASX Principles), see pages

154-156.

In addition, as explained below, as a foreign

private issuer (FPI) with American depositary

receipts (ADRs) listed on the New York Stock

Exchange (NYSE), we need to report any

significant corporate governance differences

from the NYSE listing standards (NYSE

Standards) followed by US companies.

Statement of compliance with the UK

Code and ASX Principles

Throughout 2023 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.

The UK Code is available at frc.org.uk, and

the ASX Principles at asx.com.au. For the

purposes of ASX Listing Rule 4.10.3 and the

ASX Principles, pages 91-112 of this report

form our “Corporate Governance Statement”.

This statement is current as at 21 February

2024, unless otherwise indicated, and has

been approved by the Board. Corporate

governance documents and policies

referenced can be found on our website at

riotinto.com/corporategovernance.

Difference from NYSE Standards

We have reviewed the NYSE Standards and

consider that our practices are broadly

consistent with them, with 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.

Our Nominations Committee does not

develop corporate governance principles for

the Board’s approval. The Board

itself develops such principles.

–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 UK Code

Board leadership and company

purpose

A. Making the Board effective

Our Board provides effective and

entrepreneurial leadership. It is collectively

responsible for the stewardship and long-term

success of the Group. There is a framework of

prudent and effective controls that enable risk

to be assessed and managed. In the Our

approach to ESG section on pages 40-77 we

set out how we assess our impact on wider

society. See page 102 for the key activities

undertaken by the Board during the year and

the factors that were considered when making

decisions.

B. The company’s purpose, values and

strategy, and alignment with culture

Through our Code of Conduct – The Way We

Work, the Board sets the company’s purpose,

values, and standards for the Group’s employees.

Our values are set out on page 8. The Board is

committed to acting in accordance with these

values, championing and embedding these in the

organisation. The Board also seeks to ensure that

the culture of the company is aligned with these

values and standards.

C. Company performance and

risk management

The Board leads the development of long-term

investment plans for the company. It aims to

make good quality decisions at the right time, to

achieve the company’s objectives, in alignment

with our purpose, values and strategy. The role of

the Board in establishing and monitoring the

internal control environment is set out in the Audit

& Risk Committee report on pages 107-110. The

way in which the company manages risk is set

out on pages 78-88. For information on the

delegation of business to management, please

refer to pages 94-95.

The formal schedule of matters reserved

for the Board’s decision, available at

riotinto.com/corporategovernance, covers

areas including: setting the Group’s purpose

and strategic vision;

monitoring performance of the delivery of the

approved strategy; approving major

investments, acquisitions and divestments; the

oversight of risk and the setting of the Group’s

risk appetite; and reviewing the Group’s

governance framework.

D. Stakeholder engagement

The Chair undertakes regular engagement with

our major shareholders, in addition to that carried

out by the Chief Executive, the Chief Financial

Officer and the investor relations team. The

committee Chairs also engage with their relevant

stakeholders on any significant matters and

details of any engagement are provided in the

committee reports. We have mapped our key

stakeholders and continually work to understand

their views, and we take account of our

responsibilities to our stakeholders when making

business decisions. We explain more about this

in our section 172(1) statement, set out on pages

96-100. We also discuss stakeholders in the

Strategic report on pages 12-13 and in

Our approach to ESG in this report.

Simon McKeon is the designated Non-Executive

Director for workforce engagement. An overview

of workforce engagement during 2023 is set out

on pages 96-97.

At Rio Tinto plc’s AGM on 6 April 2023,

Resolution 21 (“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 buyback 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.

E. Our workforce policies and practices

Group workforce policies are approved by the

Board. All the policies relating to our workforce take

account of the global nature of our company. Our

whistleblowing process is overseen by the Board.

Every member of the workforce has access to the

whistleblower program (myVoice); details of this

program are on page 77.

Division of responsibilities

F. The role of the Chair

The Chair leads the Board and is responsible

for its overall effectiveness. He was

independent on the date of his appointment

and we consider he remains independent

for the purposes of the Code. The Chair

recognises the importance of creating a

boardroom culture that encourages openness

and debate and ensures constructive relations

between executive and Non-Executive

Directors.

The Chair is responsible for the management

of the Board and its committees, Director

performance, induction, training and

development, succession planning, engagement

with external stakeholders, and attendance by

the Board at shareholder meetings.

152 Annual Report on Form 20-F 2023 | riotinto.com

The Chair is supported by the Senior

Independent Directors, the Group Company

Secretary and the Chief Executive. In line with

the UK Code, the Senior Independent Director,

Rio Tinto plc is responsible for acting as a

sounding board for the Chair and engages

with shareholders to develop a balanced

understanding of their interests and concerns.

For further details, please see our Board Charter

on our website, which sets out the role,

responsibilities, structure, compositions and

conduct of the Board, as well as the role of the

Chair, the Senior Independent Director, Rio Tinto

plc and the Senior Independent Director,

Rio Tinto Limited.

G. Composition of the Board

As at the date of this report, the Board

comprises 14 members: 11 independent

Non-Executive Directors, the Chair, the Chief

Executive, and the Chief Financial Officer.

As detailed in the Nominations Committee report,

we engaged Spencer Stuart to support the

search for six new Non-Executive Directors as

set out on page 105 of the Nominations

Committee report. The Committee is satisfied

that Spencer Stuart does not have any

connections with the company or individual

Directors that may impair their independence.

The Board is satisfied that it has the appropriate

balance of skills, experience, independence, and

knowledge of the company to enable its

members to discharge their respective duties and

responsibilities effectively, and that no individual

or group can dominate the Board’s decision-

making. There is a clear division of

responsibilities between the leadership of the

Board and the executive leadership of our

business. The Chief Executive is responsible for

the day-to-day management of the business and,

under a Group delegation of authority framework,

delegates to other members of the Executive

Committee.

H. Role of Non-Executive Directors

We list all of the Non-Executive Directors that

we consider to be independent on

pages 92-93. Over 50% of the Board

(excluding the Chair) are Non-Executive

Directors. The Non-Executive Directors

constructively challenge and help develop

proposals on strategy. They are also

responsible for scrutinising management

performance and ensuring that financial

information, risks and controls, and systems of

risk management are robust.

Each Director has undertaken to allocate

sufficient time to the Group in order to

discharge their responsibilities effectively, and

this is kept under review by the Nominations

Committee. The Directors’ other appointments

are listed on pages 92-93.

I. Board processes and role of the

Company Secretary

The governance framework on page 103

explains the governance structure of the Board

and sets out the relationship with the Chief

Executive. The roles and responsibilities of each

committee are explained. On pages 100 and 102

we  provide some examples of the decision-

making process of the Board and the steps it

takes to function effectively, including how it

considers stakeholders in this process.

The Group Company Secretary is the trusted

interlocutor within the Board and its committees,

and between senior leadership and the Non-

Executive Directors. He is responsible for

advising the Board, through the Chair, on all

governance matters. He supports the Chair in

ensuring that the information provided to the

Board is of sufficient quality and appropriate

detail in order for the Board to function effectively

and efficiently.

Composition, succession and

evaluation

J. Appointments to the Board

The Nominations Committee ensures a formal,

rigorous and transparent procedure for the

appointment of new Directors. It is also

responsible for Board succession planning,

regularly assessing the balance of skills,

experience, diversity and capacity required to

oversee the delivery of Rio Tinto’s strategy.

This year, the Nominations Committee

oversaw the appointment of six new Non-

Executive Directors. Details of this process are

provided in the Nominations Committee report

on page 105.

The Nominations Committee also reviews

proposed appointments to the Executive

Committee. The Board has responsibility for the

process and monitoring of Executive Committee

succession planning. The Board

oversees a longer-term succession planning

process for the Executive Committee, including

the roles of the Chief Executive and the Chief

Financial Officer.

All Non-Executive Directors are members of

the Nominations Committee. The Committee

is chaired by the Chair, apart from when the

Committee is dealing with the appointment of

his or her successor. Only the Chair and

Committee members have the right to attend

the meetings of the Nominations Committee;

attendance by all other individuals is by

invitation only. The Nominations Committee

report sets out the Board’s approach to

succession planning and how this supports the

development of a diverse pipeline, at all levels.

All Directors are subject to annual

re-election at the AGMs.

Details of external search consultancies used

for Board appointments can be found in the

Nominations Committee report on page 105.

K. Skills, experience and knowledge of the

Board and its committees

In our succession planning, we aim to bring a

diverse and complementary range of skills,

knowledge and experience to the Board, so that

we are equipped to navigate the operational,

social, regulatory and geopolitical complexity in

which our business operates. Achieving the right

blend of skills and diversity to support effective

decision-making is a continuing process. Further

details of tenure and experience of the Board are

set out in the Nominations Committee report on

pages 105-106. The Board biographies set out

the specific skills and experience that each

Director brings to the Board (pages 92-93).

L. Board evaluation

The performance of the Board, its committees

and individual Directors is evaluated annually.

In accordance with Code Provision 21, every

third year, an external adviser is engaged to

carry out a formal independent evaluation of

the Board and its committees. In 2023, we

appointed No 4 to conduct our external

evaluation. No 4 is a business advisory

company which does not have any other

connection with Rio Tinto. 

For more information see page 104.

Our disclosure on Board and executive management diversity in line with UK Listing Rules (LR9.8.6R(10)) is set out below.

Gender reporting categories as at 31 December 2023

Gender	Number of Board members	% of Board	Number of senior positions on the board (e.g. CEO/CFO, SID & Chair)	Number in executive management	% of executive management
Men	9	69%	4	9	75%
Women	4	31%¹	–	3	25%
Non-binary	–	–	–	–	–
Not specified/prefer not to say	–	–	–	–	–

1.As at 21 February 2024, the percentage of women on the Board is 36% and will be 43% from 1 July 2024.

Ethnicity reporting categories as at 31 December 2023

ONS ethnicity category	Number of Board members	% of Board	Number of senior positions on the board (e.g. CEO/CFO, SID & Chair)	Number in executive management	% of executive management
White British or White Other	12	92%	4	7	58%
Mixed/Multiple Ethnic Groups	–	–	–	1	8%
Asian/Asian British	–	–	–	–	–
Black/African/Caribbean/Black British	–	–	–	–	–
Other Ethnic Group	1	8%	–	–	–
Not specified/prefer not to say	–	–	–	4	33%

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 153

Audit, risk and internal control

M. Internal and external audit

The Audit & Risk Committee monitors the

independence and effectiveness of the Internal

Audit function and external auditors. The

Committee is responsible for reviewing key

judgements within the Group’s financial

statements and narrative reporting, with the aim

of maintaining the integrity of the Group’s

financial reporting. For further detail, please refer

to the Audit & Risk Committee report on pages

107-110.

The appointment of KPMG as external auditor

for the 2023 financial year was approved by

shareholders at our AGMs in 2023.

N. Fair, balanced and

understandable assessment

The Board is responsible for the presentation

of a fair, balanced and understandable

assessment of the company’s position and

prospects, not only in this Form 20-F. We have

a robust process in place, including through

the Disclosure Committee, to ensure that this

is the case.

O. Risk management and internal

control framework

The Board is ultimately responsible for

aligning our long-term strategic objectives with

the risk appetite of the company, taking into

account the principal and emerging risks faced

by the company. Please refer to pages 78-88

for further details of our business planning

cycle and risk management framework and

how these support our longer-term viability

statement.

Remuneration

P. Remuneration policies and practices

The People & Remuneration Committee

supports the Board by setting our

Remuneration Policy. Through long-term and

short-term incentives, our Remuneration

Policy is designed to help drive a performance

culture that incentivises executives to deliver

the Group’s long-term strategy and create

superior shareholder value over the short,

medium and long term. The overarching aim is

to ensure our remuneration structure and

policies reward fairly and responsibly with a

clear link to corporate and individual

performance, and to the company’s long-term

strategy and values. We have worked to

ensure that we have a clear policy that can be

understood by shareholders and stakeholders.

Q. Procedure for developing

remuneration policy

We have a formal and transparent procedure

for developing our Remuneration Policy, and

no Director is involved in deciding their own

remuneration. Executive remuneration is set

with regard to the wider workforce and through

market benchmarking. For further detail,

please refer to the People & Remuneration

Committee report on pages 113-145. The

Committee is supported by remuneration

consultant Deloitte. The Board received

assurance from the Committee and from

Deloitte that Deloitte did not have any

connections with Rio Tinto or the Board that

would have impaired its independence. Please

refer to page 128 for further detail.

R. Exercising independent judgement

The People & Remuneration Committee

comprises seven Non-Executive Directors to

ensure independent judgement with regard to

remuneration outcomes. The Committee

considers remuneration on an annual basis

and determines outcomes by assessing

executive performance against performance

criteria, details of which can be found in the

People & Remuneration Committee report on

pages 113-145. This states how our

Remuneration Policy has been applied and

sets out details of any adjustments made or

discretions exercised.

ASX Principles

Principle 1: Lay solid foundations for

management and oversight

Recommendation 1.1

Rio Tinto plc and Rio Tinto Limited have a

common Board of Directors. The principal role

of the Board is to set the Group’s strategy and

to review its strategic direction regularly. The

Board also has responsibility for corporate

governance. A Board Charter setting out the

role of the Board and management and

matters reserved for the Board is available on

riotinto.com/corporategovernance.

The Board delegates responsibility for

day-to-day management of the business

to the Chief Executive and other members

of the Executive Committee. A number of

management committees support the

Chief Executive and the Executive Committee.

The structure of these committees is set out

on page 103.

Recommendation 1.2

The Nominations Committee, on behalf of

the Board, ensures a formal, rigorous and

transparent procedure for the appointment of

new Directors. A similar process is followed

with the Executive Committee and senior

executive appointments, including a formal

and rigorous process to source strong

candidates from diverse backgrounds and

conducting appropriate background and

reference checks on the shortlisted

candidates. In 2023, the Nominations

Committee oversaw the appointment of six

new Non-Executive Directors, Kaisa Hietala

Dean Dalla Valle, Susan Lloyd-Hurwitz, Joc

O’Rourke, Martina Merz and Sharon Thorne.

Details of this process are provided in the

Nominations Committee report on page 105.

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 92-93.

Recommendation 1.3

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 page 124, 136, 138 and 139 in the

Remuneration report.

Recommendation 1.4

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.

Recommendation 1.5

Rio Tinto has a Group-wide, Board-endorsed

Inclusion and Diversity Policy. The policy is

available at riotinto.com/policies. The Board

sets objectives for achieving diversity for the

Board, senior executives and the workforce,

and annually reviews the Group’s performance

against them. Page 43 sets out the

measurable objectives and our performance

against them. The respective proportions of

men and women on the Board, in senior

executive positions and across the whole

organisation, are reported on pages 43, 106

and 153 of this Form 20-F.

Additional statutory disclosure continued

154 Annual Report on Form 20-F 2023 | riotinto.com

Recommendation 1.6

The performance of the Board, its committees

and individual Directors is evaluated annually.

Every third year, an external adviser is

engaged to carry out a formal independent

evaluation of the Board and its committees. In

2023, we appointed No 4 to conduct our

external evaluation. No 4 is an independent

business advisory company which does not

have any other connection with Rio Tinto.

For further information, please refer to

page 104.

Recommendation 1.7

The performance of Executive Committee

members, including Directors, is continually

evaluated as part of the Group’s performance

evaluation cycle. Further details are set out in

the Remuneration report on pages 113-145.

Principle 2: Structure the Board to be

effective and add value

Recommendation 2.1

The Nominations Committee includes all Non-

Executive Directors and is chaired by the

Chair of the Board. The Board is satisfied that

all Non-Executive Directors, including the

Chair, continue to meet the test for

independence under the ASX Principles.

The Nominations Committee’s terms of

reference are available at riotinto.com/

corporategovernance. The Nominations

Committee report on pages 105-106 provides

further details on its role and responsibilities.

Details on membership, the number of times

the Committee met, and the attendance of

members are set out on page 104.

Recommendation 2.2

A Board skills matrix showing key attributes in

terms of skills, experience and diversity that

are relevant to the Board is set out on

page 106.

Recommendations 2.3, 2.4, 2.5

The Nominations Committee is responsible for

assessing the independence of each Non-

Executive Director against an independence

framework that combines the requirements of

the UK Code, the ASX Principles and the

NYSE Standards. The Committee reviews and

approves this framework each year.

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.

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 the NYSE

Standards.

The name, skills and experience of each

Director, together with their terms in office, are

shown in the biographical details on pages

92-93.

Recommendation 2.6

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.

In addition, the Group Company Secretary

provides regular updates on corporate

governance developments in the UK, Australia

and the US.

Principle 3: Instil a culture of acting

lawfully, ethically and responsibly

Recommendations 3.1, 3.2, 3.3, 3.4

Through our Code of Conduct – The Way We

Work, the Board sets the company’s purpose,

values, and standards for the Group’s

employees. Our values are set out on page 8.

The Board is committed to acting in

accordance with these values, championing,

and embedding them in the organisation.

Our Code of Conduct is available at

riotinto.com/ethics.

Rio Tinto’s confidential and independently

operated whistleblowing program (myVoice)

offers an avenue through which our

employees, contractors, suppliers and

customers can report concerns anonymously,

subject to local law. These may include

concerns about the business, or behaviour of

individuals, including suspicion of violations of

financial reporting, safety or environmental

procedures or other business integrity issues.

The program features telephone and web

submissions, a case management tool, and a

reporting tool to allow for better analysis of

case statistics.

The myVoice procedure explains how

concerns regarding matters relating to

Rio Tinto, its business and its people can be

raised, in confidence and without fear of

retaliation. The procedure also sets out

who can make a report and what they can

expect from us if they do report a concern.

The procedure is available on our website.

Further details on myVoice are set out on

page 77. Rio Tinto’s business integrity

standard sets out the Group’s position on

issues relating to bribery and corruption. This 

is also available on our website.

Further information is set out on page 76.

Oversight of the Group’s ethics, integrity and

compliance program now falls within the remit

of the Board.

Principle 4: Safeguard integrity in

corporate reports

Recommendation 4.1

The Audit & Risk Committee report on

pages 107-110 provides details of

the role and responsibilities of the Committee.

The Committee’s terms of reference are

available at riotinto.com/corporategovernance.

Further details on membership, the number of

times the Committee met during 2023 and the

attendance of members are set out on

page 104.

Recommendation 4.2

Details on compliance with the financial

reporting requirements contemplated under

this recommendation are set out on

pages 150-151.

Recommendation 4.3

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.

Principle 5: Make timely and

balanced disclosure

Recommendation 5.1

We recognise the importance of effective and

timely communication with shareholders and

the wider investment community.

It is our policy to make sure that all information

disclosed or released by the Group is

accurate, complete and timely, and complies

with all continuous and other disclosure

obligations under applicable listing rules and

other relevant legislation.

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. A copy of the Group

Disclosure and Communications Policy is

available on the website.

The Disclosure Committee is responsible for

determining whether information relating to

Rio Tinto may require disclosure to the

markets under the continuous disclosure

requirements in the jurisdictions in which

Rio Tinto is listed. In accordance with its terms

of reference, the specific focus of the

Committee is to consider and determine on a

timely basis whether information would, to the

extent that the information is not public and

relates directly or indirectly to Rio Tinto, be

likely to have a material effect on the price of

Rio Tinto securities if that information was

generally available.

Directors’ report

Annual Report on Form 20-F 2023 | riotinto.com 155

The members of the Committee are the Chief

Executive; the Chief Financial Officer; the

Group Company Secretary; the Chief Legal

Officer, Governance & Corporate Affairs; the

Head of Strategy & Investor Relations; and the

Chief Executive Australia.

Recommendation 5.2

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.

Recommendation 5.3

As a matter of practice, all our new or

substantive investor presentations are

released to the market via ASX and LSE

market announcement platforms.

Principle 6: Respect the rights of

security holders

Recommendation 6.1

Our website includes pages dedicated to

corporate governance, providing information

on compliance with governance codes and

standards (the UK Code, the ASX Principles

and the NYSE Standards); the terms of

reference of the committees; risk management

and financial reporting; and Board

governance, including selection, appointment

and re-election of Directors, Directors’

independence, and Board performance

evaluation.

All information released to the markets is

posted in the media section of our website.

Our website also provides general investor

information. Annual and half-year results, as

well as any major presentations, are webcast

and the materials are available at our website,

which also contains presentation material from

investor seminars.

Recommendation 6.2

Our main channels of communication with the

investment community are through the Chair,

Chief Executive and Chief Financial Officer,

who have regular meetings with the Group’s

major shareholders. The Senior Independent

Director, Rio Tinto plc, and the Senior

Independent Director, Rio Tinto Limited, have

a specific responsibility under the UK Code

and the Board Charter to be available to

shareholders who have concerns that have

not been resolved through contact with the

Chair, Chief Executive or Chief Financial

Officer, or for whom such contact is

inappropriate. We have a number of

processes and initiatives to ensure that

members of the Board understand the views

of major shareholders. The Chief Financial

Officer reports to the Board at each meeting,

and provides regular investor updates. In

addition, the Head of Strategy & Investor

Relations reports regularly to the Board, and

an annual survey of major shareholders’

opinions is presented to the Board by the

Group’s investor relations advisers. Further

information on engagement with shareholders

and investors during 2023 is set out on pages

98-99.

Recommendations 6.3, 6.4

The AGMs present an opportunity to provide a

summary business presentation, to inform

shareholders of recent developments, and to

give them the opportunity to ask questions.

Generally, the Chairs of all Board committees

are available to answer questions raised by

shareholders, and all Directors are expected

to attend where possible. The AGMs are

generally webcast and transcripts of the

Chair’s and Chief Executive’s speeches are

made available on our website. A summary of

the proceedings at the meetings, and the

results of voting on resolutions, are made

available as soon as practicable after the

meetings. At Rio Tinto AGMs, all resolutions

are decided by poll and not by show of hands.

In 2023, the Rio Tinto Limited AGM was held

in Perth as a hybrid meeting. With the use of

technology, shareholders who could not attend

in person were offered the opportunity to

virtually participate at the AGM, ask questions

and vote on the resolutions.

Recommendation 6.5

Shareholders can choose to communicate

electronically with the companies and the

share registrars. Contact details for the

registrars are set out on page 382 and on our

website.

Principle 7: Recognise and manage

risk

Recommendations 7.1, 7.2

The Board is ultimately responsible for risk

management and internal controls, and for

ensuring that the systems in place are robust

and take into account the material risks faced

by the Group. The Board delegates certain

matters relating to the Group’s risk

management framework to the Audit & Risk

Committee, which provides updates to the

Board on matters discussed at each meeting.

The Sustainability Committee advises the

Board on risk appetite tolerance and strategy

with respect to sustainable development risks.

Further information about the Sustainability

Committee is set out on pages 111-112. Terms

of reference for the Sustainability Committee

are available on our website. Further details

on the Group’s governance framework for risk

management and internal control are set out

on pages 78-88 and 110.

Recommendation 7.3

Further information on Rio Tinto’s Group

Internal Audit function is set out on page 110.

Recommendation 7.4

A description of the risk factors that could

affect Rio Tinto (including economic,

environmental and social sustainability risks),

and of the Group’s governance framework for

risk management and internal control, is set

on pages 78-88. Further information on

sustainability is available on pages 40-77.

Principle 8: Remunerate fairly

and responsibly

Recommendation 8.1

The Remuneration report on pages 113-145

provides details on the role and

responsibilities of the People & Remuneration

Committee. The Committee’s terms of

reference are available on our website.

Further details on membership, the number of

times the Committee met during 2023, and the

attendance of members are set out on

pages 92-93 and 104.

Recommendation 8.2

Rio Tinto’s policies and practices regarding

remuneration of Non-Executive Directors,

Directors and senior executives are set out on

pages 113-145 in the Remuneration report.

Recommendation 8.3

Rio Tinto’s approach on participating in equity-

based remuneration schemes is set out on

page 150. This is also addressed in the

Rio Tinto Securities Dealing Policy, which is

available on our website.

Additional statutory disclosure continued

156 Annual Report on Form 20-F 2023 | riotinto.com

 

2023 Financial Statements
About Rio Tinto	158	Our people
About the presentation of our financial statements	158	Note 25 Average number of employees	215
		Note 26 Employment costs and provisions	215
Group primary statements		Note 27 Share-based payments	216
Group Income Statement	168	Note 28 Post-retirement benefits	218
Group Statement of Comprehensive Income	169	Note 29 Directors’ and key management remuneration	225
Group Cash Flow Statement	170
Group Balance Sheet	171	Our group structure
Group Statement of Changes in Equity	172	Note 30 Principal subsidiaries	226
		Note 31 Principal joint operations	228
Notes to the 2023 financial statements		Note 32 Principal joint ventures and associates	229
Our financial performance		Note 33 Related-party transactions	231
Note 1 Our financial performance by segment	173
Note 2 Earnings per ordinary share	175	Our equity
Note 3 Dividends	176	Note 34 Share capital	232
Note 4 Impairment charges net of reversals	177	Note 35 Other reserves and retained earnings	233
Note 5 Acquisitions and disposals	181
Note 6 Revenue by destination and product	182	Other notes
Note 7 Net operating costs (excluding items disclosed separately)	184	Note 36 Other provisions	234
		Note 37 Contingencies and commitments	234
Note 8 Exploration and evaluation expenditure	184	Note 38 Auditors’ remuneration	237
Note 9 Finance income and finance costs	185	Note 39 Events after the balance sheet date	237
Note 10 Taxation	185	Note 40 New standards issued but not yet effective	237
Our operating assets		Other information outside of the consolidated financial statements
Note 11 Goodwill	188
Note 12 Intangible assets	189	Report of Independent Registered Public Accounting Firms	267
Note 13 Property, plant and equipment	191	Rio Tinto Financial Information by Business Unit	286
Note 14 Close-down and restoration provisions	196	Alternative Performance Measures	289
Note 15 Deferred taxation	200
Note 16 Inventories	202
Note 17 Receivables and other assets	203
Note 18 Trade and other payables	203
Our capital and liquidity
Note 19 Net debt	205
Note 20 Borrowings	206
Note 21 Leases	207
Note 22 Cash and cash equivalents	208
Note 23 Other financial assets and liabilities	209
Note 24 Financial instruments and risk management	209

Simandou iron ore project, Guinea
	Annual Report on Form 20-F 2023 | riotinto.com	157

About Rio Tinto

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 (IFRS)-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 IFRS.

Rio Tinto’s business is finding, mining, and processing mineral

resources. Major products are iron ore, aluminium, copper, industrial

minerals (borates, titanium dioxide and salt) and diamonds. 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.

About the presentation of our financial statements

All financial statement values are presented in US dollars 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 2023 were

authorised for issue in accordance with a Directors’ resolution on

21 February 2024.

a. The basis of preparation

The financial information included in the financial statements for the

year ended 31 December 2023, 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 international 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 2023.

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 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 list of principal subsidiaries is shown in note 30.

A joint arrangement is an arrangement in which two 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

two 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,

shown in note 31, 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. 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 32.

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.

Financial statements

Corporate information

158 Annual Report on Form 20-F 2023 | riotinto.com

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 years ended 31 December 2023 and 31 December 2022 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 2023 and how they compare

to the prior year. Taking a different judgement over these matters could lead to a material impact on the 2023 financial statements. More detail on

the judgement can be found in the respective notes. 

Key judgements	2023	2022	Context
Indicators of impairment and impairment reversals (note 4)	a	a	Various cash-generating units of the Group have been impaired in previous years and are, therefore, monitored closely for indicators of further impairment or impairment reversal as such adjustments would likely be material to our results.
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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 159

Information on other relevant judgements to help understand the financial statements has been incorporated into the relevant accounting policy

sections of each note. We have summarised these judgements below:

Other relevant judgements	2023	2022	Context
Identification of functional currencies (f below)	a	a	The determination of functional currency is a relevant judgement as it 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.
Exclusions from underlying EBITDA (note 1)	a	a	Judgement is required in excluding items from profit after tax as they are 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.
Determination of cash-generating units (CGUs) (note 4)	a	a	Judgement is applied to identify the Group’s CGUs, particularly when assets belong to integrated operations. Changes in asset allocations to CGUs could impact impairment charges and reversals.
Uncertain tax positions (note 10)	a	a	Where the amount of tax payable or recoverable is uncertain in any of the jurisdictions in which the Group operates, whether due to the 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.
Assessment of indefinite-lived water rights in Quebec (note 12)	a	a	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. This determination is a relevant judgement as intangible assets that are deemed to have indefinite lives are not amortised; they are reviewed annually for impairment or more frequently if events or changes in circumstances indicate a potential impairment.
Recoverability of deferred tax assets (note 15)	a	a	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, including future profit forecasts.
Lease assessment (note 21)	a	0	The Group has entered into renewable energy power purchase agreements that require judgements to assess whether the arrangement contains a lease for the relevant power generating assets.
Accounting for the Pilbara Iron Arrangements (note 31)	a	a	In assessing the Pilbara Iron Arrangements, judgement is required in concluding whether they collectively constitute a joint arrangement.
Basis of consolidation of Queensland Alumina Limited  (note 31)	0	a	Judgement is required to assess how we consolidate Queensland Alumina Limited (QAL). As a result of the Australian government imposing Trade Sanctions against Russia, QAL is not able to process bauxite on behalf of Rusal entities. Rio Tinto has contributed additional bauxite tonnes to ensure that 100% of production capacity is maintained. We continue to account for QAL as a joint operation.
Accounting for Minera Escondida Ltda (note 32)	a	a	Judgement is required in our determination that Escondida is a joint venture as this impacts the classification of the entity in the financial statements.
Recognition of contingencies (note 37)	a	a	Judgement is required to determine whether disclosure is made for material contingent liabilities depending on whether the possibility of any loss arising is considered remote, and whether these can be reliably estimated in order to be quantified.

Financial statements continued

160 Annual Report on Form 20-F 2023 | riotinto.com

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	2023	2022	Context
Estimation of the close-down, restoration and environmental cost obligations (note 14)	a	a	Close-down, restoration and environment 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. The most significant closure provision update related to the Ranger mine at Energy Resources of Australia.  The provision is based on reforecast cash flows, these are subject to further study which could result in material adjustment in the near term.
Estimation of obligations for post- employment costs (note 28)	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 US dollars, 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 US dollar is generally identified to be the functional currency as a higher proportion of costs, particularly imported goods and

services, are agreed and paid in US dollars, 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 2023, A$15 billion of intragroup loans continued to meet these criteria; associated exchange gains and losses are taken to equity.

On consolidation, income statement items for each entity are translated from the functional currency into US dollars 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 US dollars at period-end exchange rates.

Exchange differences arising on the translation of the net assets of entities with functional currencies other than the US dollar 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 credited to the

income statement in the year in which they arise.

The principal exchange rates used in the preparation of the financial statements were:

	Full-year average			Year-end
One unit of local currency buys the following number of US dollars	2023	2022	2021	2023	2022	2021
Pound sterling	1.24	1.24	1.38	1.28	1.21	1.35
Australian dollar	0.66	0.69	0.75	0.69	0.68	0.73
Canadian dollar	0.74	0.77	0.80	0.76	0.74	0.78
Euro	1.08	1.05	1.18	1.11	1.07	1.13
South African rand	0.054	0.061	0.068	0.054	0.059	0.063

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 161

g.Mineral 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 Mineral Reserve is the economically mineable

part of a measured or indicated Mineral Resource.

The estimation of Mineral 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 Qualified Persons of the Group

(according to the Australasian Code for Reporting of Exploration

Results, Mineral Resources and Mineral Reserves (the JORC Code)),

estimate Mineral 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; and

–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 (refer to the Climate

change section for further details about our pricing methodology). 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 Mineral 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; and

–recovery of deferred tax assets.

h.Impact of climate change on the Group 

The impacts of climate change and the execution of our climate change

strategy on our financial statements are discussed below:

Strategy and approach to climate change

In 2021, we put the low-carbon transition at the heart of our business

strategy, setting a clear pathway to deliver long-term value as well as

ambitious targets to decarbonise our business. 

Our targets are to reduce Scope 1 and 2 emissions by 15% by 2025,

50% by 2030 (both relative to our 2018 equity baseline) and to reach

net zero emissions by 2050. These targets are aligned with efforts to

limit warming to 1.5°C – the stretch long-term goal of the Paris

Agreement. The pathway to reducing our carbon footprint is organised

into six global decarbonisation programs focused on renewables,

Pacific aluminium operations, aluminium anodes including ELYSISTM

technology, alumina processing decarbonisation, minerals processing

decarbonisation and diesel alternatives. Nature-based solutions (NbS)

and carbon credits complement our decarbonisation programs. By 2025

we expect to have made financial commitments to abatement projects

on renewables, diesel replacement and process heat that will achieve

more than 15% of Group emissions, however, our actual emissions

abatement will lag these. To accelerate these activities, we established

the Rio Tinto Energy and Climate Team led by our Chief

Decarbonisation Officer. To deliver our decarbonisation strategy, we

estimate that we will invest around US$5 billion to US$6 billion in capital

between 2022 to 2030 (revised from US$7.5 billion in prior year, due to

the increased role of commercial contracts treated as operating

expenditure and our expected timeline of fleet electrification roll out post

2030). This excludes capitalised voluntary and compliance-based offset

costs.

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.

Our forecast growth capital expenditure captures new growth

opportunities with a focus on materials that are expected to see strong

demand growth from the low carbon transition. This includes our

investment in Simandou, completion of the Oyu Tolgoi underground

copper-gold mine and investment in new copper and lithium projects.

Our budget for central greenfield exploration mainly focuses on copper

with a growing battery materials program.

Decarbonisation investment decisions are made under a dedicated

evaluation framework, which includes consideration of the value of the

investment and its impact on the cost base, the level of abatement, the

maturity of the technology, the competitiveness of the asset and its

policy context, and alternative options on the pathway to net zero. 

Projects are also assessed against our approach to a just transition,

with consideration of the impact on employees, local communities, and

industry.

Financial statements continued

162 Annual Report on Form 20-F 2023 | riotinto.com

Climate change scenarios

Our strategy and approach to climate change are informed by our

analysis of the interplay of global megatrends, explored through the lens

of plausible global scenarios. These set the context for our industry and

underpin our commodity price outlooks, portfolio and capital allocation

choices and how we operate as a business.  There are many plausible

scenarios for global energy transition, all with different impacts on future

commodity price outcomes. We did not fundamentally change our

scenarios in 2023, but have updated the temperature outcomes in 2100

based on the Sixth Assessment Report of the Intergovernmental Panel

on Climate Change. The following two core scenarios are used to

generate a single central reference case for use in commodity price

forecasts, valuation models, reserves and resources determination and

in determining estimates for assets and liabilities in our financial

statements, as was the case in the prior year:

–Competitive Leadership scenario, limiting global warming to between

1.6°C-2°C (previously 2°C) by 2100, reflects a rapidly developing

world of high growth and strong climate action post-2030, with

change driven by policy and competitive innovation. As a result, we

expect that countries achieve their Glasgow Climate Pact

commitments agreed at the UN Climate Summit (COP26). Global

weighted average carbon prices are forecast to rise rapidly at an

average of 8% per year over the next three decades, reaching

US$42/tCO2e in 2030, and rising rapidly post-2030 to incentivise

significant mitigation in industrial sectors post-2030.

–Fragmented Leadership scenario, with global warming to between

2.1-2.5°C (previously exceeding 2.5°C) by 2100, is characterised by

limited progress on policy reform with volatile low growth. We expect

that nations eventually achieve their 2030 Nationally Determined

Contributions as agreed in Paris in 2015 but fail to progress towards

long-term carbon goals agreed at COP26. Global weighted average

carbon prices are forecast to rise slowly, at an average of 2.9% per

year over the period to 2050, reaching US$42 in 2030; but remain too

low post-2030 to incentivise significant mitigation in industrial sectors

resulting in flat global emissions post-2030.

We note with concern that at the UN Climate Summit in late 2023

(COP28), it was evident in the global stock take that progress to

decarbonise the global economy is falling short of the goal to limit

warming to 1.5°C by 2100 and that current climate policies in many

countries are not yet aligned with their stated ambitions. Consequently,

neither of our two core scenarios are consistent with the expectation of

climate policies required to accelerate the global transition to meet the

stretch goal of the Paris Agreement. Although our operational emissions

reduction targets align with the goals of the Paris Agreement, our two

core scenarios do not. As a result, we also assess our sensitivity and

test the economic performance of our business against a scenario we

have developed to reflect our view of the global actions required to meet

the stretch goal of the Paris Agreement. We refer to this Paris-aligned

scenario as the Aspirational Leadership scenario.

The Aspirational Leadership scenario reflects a world of high growth,

significant social change and accelerated climate action. Global

weighted average carbon prices rise rapidly – at an average of 9.3%

per year over the next three decades – reaching $59/tCO2e in 2030 and

incentivise rapid and deep reductions in industrial emissions post-2030.

Despite geopolitical differences, major economies work together

through multilateral frameworks and proactively work towards limiting

temperature change to 1.5°C by 2100. The Aspirational Leadership

scenario is a commodity sales price and carbon tax sensitivity, with all

other inputs remaining equal to our Reference Case. It is built by design

to reach net zero emissions globally by 2050 and help us better

understand the pathways to meet the Paris Agreement goal, and what

this could mean for our business. It is used for strategy and risk

discussions, including analysis of sensitivity to our view of a Paris-

aligned pathway and comparison of relative economic performance to

our core scenarios.

Importantly, none of our three 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.

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.

Low-carbon transition risks and opportunities, financial

resilience of our portfolio

Through our strategy process, we compare the economic performance

of our portfolio under our two core scenarios and the Aspirational

Leadership scenario. This indicates that, overall, the economic

performance of our portfolio would be stronger in scenarios with

proactive climate action, particularly in relation to aluminium, copper

and higher-grade iron ore. This reflects anticipated increased demand

for these commodities in the low-carbon transition. 

We anticipate that our Group’s overall economic performance will be the

strongest under the Competitive Leadership scenario and the weakest

under the Fragmented Leadership scenario.  Our Aspirational

Leadership scenario predicts the Group's overall economic performance

would fall between the Fragmented Leadership and Competitive

Leadership scenarios. This reflects higher estimated economic

performance for our copper and aluminium businesses in the

Aspirational Leadership scenario, based on their higher price profiles,

offset by higher expected carbon penalties across our operating

jurisdictions, and lower prices for lower grade iron ore products. Refer

below for our assessment of the accounting implications of forecast

commodity pricing in the Aspirational Leadership scenario.

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 risk impacts

In 2022, we launched the Physical Resilience Program across the

Group starting with the asset-level resilience assessment in iron ore

operations in the Pilbara and aluminium operations in the Saguenay. In

2023, we continued to make progress in a Group-wide, top-down

assessment to further understand the risks and opportunities

associated with physical climate change and to quantify any financial

impacts, in addition to the site-specific, bottom-up assessments, which

will continue in the foreseeable future. Asset-level resilience

assessments conducted across our Canadian sites, including

Saguenay, Kitimat, and IOC; our iron ore project at Simandou in

Guinea; at Weipa and Yarwun in Australia as well as our ongoing review

processes, including impairment assessments, have not identified any

material accounting impacts to date. For example, in 2023, no write-offs

were necessary in the Pilbara, where certain infrastructure assets, such

as transmission lines, that have reached the end of their natural lives

are being replaced with climate resilient infrastructure. 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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 163

NbS, carbon credits and renewable energy certificates

(RECs)

While prioritising emissions reductions at our operations, we are also

investing in NbS that can bring benefits to people, nature and climate.

We have three pathways to securing carbon credits: investment in

Australian Carbon Credit Units (ACCUs), the development of our own

voluntary projects and commercial agreements with voluntary carbon

credit developers. We may use high quality carbon credits from these

projects towards our 2030 target. This will complement our abatement

project portfolio and support our compliance with carbon pricing

regulation such as the Safeguard Mechanism in Australia

(approximately half of our Group emissions are subject to carbon pricing

regulation in Australia, Canada and elsewhere).

In March 2023, the Australian Parliament legislated to introduce reforms

to the Safeguard Mechanism that apply from 1 July 2023. In the short-

to-medium term, we anticipate that a number of our facilities will be

above the legislated baseline, requiring us to purchase and surrender

ACCUs. In 2023, we purchased US$61 million (2022: US$33 million) of

carbon credits and RECs. They have been acquired for our own use

and are accounted for as intangible assets (note 12).

Accounting impacts from executing our strategy

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. In response, carrying

values of assets and liabilities could be materially affected in future

periods. Our current strategy and approach to decarbonise our

operations and achieve our Scope 1 and 2 emissions targets are

considered in our significant judgements and key estimates reflected in

these financial results.

Progressing our strategy to grow in materials needed for the low-

carbon transition

As part of our strategy to grow in materials essential for the energy

transition we progressed our high-grade iron ore project in Simandou,

we continued to invest in our copper portfolio and the Rincon lithium

project. These projects follow our existing accounting policies on

undeveloped properties and cost capitalisation.

As discussed in note 5, we entered into an agreement with Giampaolo

Group to form the Matalco joint venture for a combined consideration of

US$738 million to meet a growing demand for recycled aluminium 

solutions. The investment is accounted for under the equity method. In

2023, we also invested US$45 million in a copper project known as

Nuevo Cobre accounted for as an investment in a partially owned

subsidiary (note 5).

Decarbonising our portfolio

As part of our decarbonisation programs, we invested US$94 million

(2022: US$86 million) in various decarbonisation projects, all capitalised

on 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$234 million (2022: US$138 million), all recognised in the income

statement (note 7). Our capital commitments related to decarbonisation

in 2023 totalled US$123 million (2022: US$8 million)and included the

Amrun renewable power purchase agreement (PPA) classifed as a

lease not yet commenced (note 37).

In addition, we invested US$36 million (2022: US$42 million) in entities

specialising in decarbonisation and related technology, accounted for as

financial assets, and Australian Integrated Carbon (AIC), a leading

developer of high-quality carbon credits, which is an equity accounted

unit.

Given the significant investments 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 power off-take arrangements 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 21 for further information on significant judgements

in lease assessment). The renewable solar PPAs at Richards Bay

Minerals (RBM) will be accounted for on an accrual basis as energy is

produced, while the renewable offtake arrangements at QIT

Madagascar Minerals (QMM) and Amrun are leases.

As part of the program to develop renewable energy solutions for our

Queensland aluminium assets, on 22 December 2023 we entered into 

a long-term renewable 1.1GW PPA at Upper Calliope Solar Farm, to

buy renewable electricity and associated green products to be

generated in the future. The contract is accounted for as a level 3

financial derivative with a zero fair value at inception and an immaterial

value at year end. The derivative will require complex measurement

over the contract’s term.

No adjustments to useful lives of the existing fleet have been identified

to date as a result of planned fleet electrification in the Pilbara and the

purchase of battery-powered locomotives in the prior period. The

solutions are still in development or pilot stages and the gradual fleet

replacement is intended to be part of the normal lifecycle 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 lifecycle renewal. The energy

efficiency double digestion project at Queensland Alumina refinery does

not reduce the economic lives of the underlying alumina assets, but

could lower operating costs and improve margins. The expenditure on

our own carbon abatement projects and technology advancements

follows existing accounting policies on cost capitalisation, research and

development costs.

Impairment - sensitivities to climate change

In our impairment review process we consider the risks associated with

climate change.

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.   

The legislated Safeguard Mechanism reforms referred to above, difficult

trading conditions, together with our improved understanding of the

capital requirements for decarbonisation, were identified as impairment

triggers and an impairment of US$1,175 million was recognised during

the year at the Yarwun alumina refinery and Queensland Alumina

Limited (note 4). The recoverable amount included the benefits of an

energy efficiency digestion project at Queensland Alumina refinery. This

does not reduce the economic lives of the underlying alumina assets

but could lower operating costs and improve margins.

Following the impairment in 2022, we continue to evaluate lower

emission power solutions for the Boyne smelter that could extend its life

to at least 2040. In such circumstances, the net present value of the

forecast future cash flows could support the reversal of past

impairments. In note 4 we illustrated the sensitivity of the refineries

valuations to the cost of carbon credits.

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 these assets could reverse. 

In the Aspirational Leadership scenario, the prices for lower-grade iron

ore are supported in the medium term by an assumed underlying

increase in GDP-driven demand. However, in the longer term, we

assume the pricing for lower-grade iron ore to be weaker than in our

core scenarios. This will depend on the development of low-carbon

steel technology, the pace of which is uncertain, but is expected to be

Financial statements continued

164 Annual Report on Form 20-F 2023 | riotinto.com

offset by higher prices for higher-grade iron ore. Consistent with the

prior year, this is very unlikely to give rise to impairment triggers for

2024 or 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.

Use of Paris-aligned accounting

Forecast commodity prices, including carbon prices, incorporated into a

blend of our two scenarios 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 neither of our core scenarios

represents 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. As

described above, we use our Aspirational Leadership scenario to

understand the sensitivity of these estimates to Paris-aligned

assumptions.

We completed the divestments of our coal businesses in 2018 and no

longer mine coal, but retained a contingent royalty income from these

divestments. Recent favourable coal prices exceeded contractual

benchmark levels and resulted in the cash royalty receipt of

US$38 million during 2023. We also carry royalty receivables of

US$214 million on our balance sheet at 31 December 2023, measured

at fair value (note 24). The fair value of this balance may be adversely

impacted in the future by a faster pace of transition to a low carbon

economy, but this impact is not expected to be material.

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 2023. 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 Mineral Reserves and therefore longer dated closure.

Overall, based on the Aspirational Leadership scenario pricing

outcomes, and with all other assumptions remaining consistent with

those applied to our 2023 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 commentary on the impact of climate change on our

business is included in the following notes:

Financial reporting considerations and sensitivities related to climate change	Page
Recoverable value of our assets, asset obsolescence, impairment and use of sensitivities (note 4)	179
Operating expenditure spend on decarbonisation (note 7 - footnote (h))	184
Water rights - climate impact on indefinite life (note 12)	189
Carbon abatement spend on procurement of carbon units and renewable energy certificates (note 12 - footnote (a))	190
Estimation of asset lives (note 13)	192
Additions to property, plant and equipment with a primary purpose of reducing carbon emissions (note 13 - footnote (d))	194
Useful economic lives of power generating assets (note 13)	195
Close-down, restoration and environmental cost (note 14)	199
Upper Calliope Solar Farm PPA in Queensland (note 24 (iv))	211
Coal royalty receivables (note 24)	214
Decarbonisation capital commitments (note 37)	235

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 165

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 2022, except for the

accounting requirements set out below, effective as at 1 January 2023.

Deferred Tax related to Assets and Liabilities arising from a

Single Transaction (Amendments to IAS 12 “Income

Taxes”), mandatory in 2023 and endorsed by the UK)

At 1 January 2023, we adopted narrow-scope amendments to IAS 12

and have restated comparative periods in accordance with the transition

arrangements. These amendments introduce an exception to the initial

recognition exemption application for transactions giving rise to equal

and offsetting taxable and deductible temporary differences.

Under the amendments, separate deferred tax assets and liabilities are

calculated and recognised, prior to application of any required recovery

testing and permitted offsetting, and subsequent movements in those

deferred tax assets and liabilities are recognised in the income

statement. Our previous accounting policy stated that “where the

recognition of an asset and liability from a single transaction gives rise

to equal and offsetting temporary differences, we apply the initial

recognition exemption allowed by IAS 12, and consequently recognise

neither a deferred tax asset nor a deferred tax liability in respect of

these temporary differences”.

The most significant impact of implementing these amendments is from

temporary differences related to the Group’s provisions for close-down and

restoration, and lease obligations and corresponding capitalised closure

costs and right-of-use assets. Adjustments to deferred tax assets and

liabilities related to these balances have been recognised as at 1 January

2021, being the beginning of the earliest comparative period to be

presented in the financial statements for the year ended 31 December

2023, with the cumulative effect recognised as an adjustment to retained

earnings or other components of equity at that date. For other transactions,

the impact of which was immaterial, the amendments apply only to those

taking place on or after 1 January 2021. The impact on equity attributable

to owners of Rio Tinto at 1 January 2023 of implementing the amendments

to IAS 12 is as follows:

At 1 January	2023 US$m	2022 US$m	2021 US$m
Equity attributable to owners of Rio Tinto (previously reported)	50,175	51,415	47,054
Impact of IAS 12 amendments(a)	459	515	516
Restated equity attributable to owners of Rio Tinto	50,634	51,930	47,570

(a)Retained earnings adjustments at 1 January 2023 and 2022 include the impact of income

statement adjustments for the years ended 31 December 2022 and 2021, respectively.

The restatement of deferred tax balances for the comparative reporting

date is as follows:

	31 December 2022
	US$m
Deferred tax assets (previously reported)	2,766
Impact of IAS 12 amendments	30
Deferred tax assets (restated)	2,796
Deferred tax liabilities (previously reported)	(3,601)
Impact of IAS 12 amendments	437
Deferred tax liabilities (restated)	(3,164)
Net impact of IAS 12 amendments on deferred tax balances	467
Comprising, prior to offsetting of balances:
Deferred tax assets arising from:
-  Provisions and other liabilities	1,586
- Capital allowances	(57)
	1,529
Deferred tax liabilities arising from Capital allowances	(1,062)

Restatement of pre-offset balances at 31 December 2022 represents

additional gross deferred tax liabilities of US$922 million and gross

deferred tax assets of US$1,380 million in relation to close-down and

restoration obligations and related capitalised closure costs, and

additional gross deferred tax liabilities of US$140 million and gross

deferred tax assets of US$149 million in relation to lease liabilities and

related right-of-use assets.

The impact of restatement on net earnings for the years ended

31 December 2021 and 31 December 2022 were a net credit of

US$22 million and net charge of US$28 million, respectively, related to

depreciation of closure and right of use assets and settlement of closure

and lease liabilities.

IFRS 17 “Insurance Contracts” and Amendments to IFRS

17 “Insurance Contracts” (mandatory in 2023 and endorsed

by the UK)

We implemented IFRS 17 and related amendments on 1 January 2023,

which provides consistent principles for all aspects of accounting for

insurance contracts. The standard does not have a material impact on

the Group.

Financial statements continued

166 Annual Report on Form 20-F 2023 | riotinto.com

Amendments to IAS 1 “Presentation of Financial

Statements”, IFRS Practice Statement 2 “Making Materiality

Judgements” and Amendments to IAS 8 “Accounting

policies, Changes in Accounting Estimates and Errors”

We adopted Amendments to IAS 1 and IFRS Practice Statement 2,

requiring companies to disclose their material accounting policies rather

than their significant accounting policies. The amendments do not have

a material impact on the Group.

We adopted Amendments to IAS 8 clarifying how companies should

distinguish changes in accounting policies generally applied

retrospectively, from changes in accounting estimates applied

prospectively. The amendments introduce a new definition for

accounting estimates clarifying that they are monetary amounts in the

financial statements that are subject to measurement uncertainty. The

amendments do not have a material impact on the Group.

The Organisation for Economic Co-operation and

Development’s (OECD) Pillar Two Rules

We have adopted the amendments to IAS 12 issued in May 2023,

which provide a temporary mandatory exception from the requirement

to recognise and disclose deferred taxes arising from enacted or

substantively enacted tax law that implements the Pillar Two model

rules, including tax law that implements qualified domestic minimum

top-up taxes described in those rules. Under these amendments, any

Pillar Two taxes incurred by the Group will be accounted for as current

taxes from 1 January 2024.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 167

	Note	2023 US$m	2022 US$m Restated (a)	2021 US$m Restated (a)
Consolidated operations
Consolidated sales revenue	1, 6	54,041	55,554	63,495
Net operating costs (excluding items disclosed separately)	7	(37,052)	(34,770)	(32,690)
Net impairment (charges)/reversals	4	(936)	150	(269)
Loss on disposal of interest in subsidiary	5	—	(105)	—
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects)	8	(1,230)	(896)	(719)
Operating profit		14,823	19,933	29,817
Share of profit after tax of equity accounted units		675	777	1,042
Impairment of investments in equity accounted units	4	—	(202)	—
Profit before finance items and taxation		15,498	20,508	30,859
Finance items
Net exchange (losses)/gains on external net debt and intragroup balances		(251)	253	802
Losses on derivatives not qualifying for hedge accounting		(54)	(424)	(231)
Finance income	9	536	179	64
Finance costs	9	(967)	(335)	(243)
Amortisation of discount on provisions	14, 36	(977)	(1,519)	(418)
		(1,713)	(1,846)	(26)
Profit before taxation		13,785	18,662	30,833
Taxation	10	(3,832)	(5,614)	(8,236)
Profit after tax for the year		9,953	13,048	22,597
– attributable to owners of Rio Tinto (net earnings)		10,058	12,392	21,115
– attributable to non-controlling interests		(105)	656	1,482
Basic earnings per share	2	620.3c	765.0c	1,304.7c
Diluted earnings per share	2	616.5c	760.4c	1,296.3c

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

The notes on pages 158 to 167 and pages 173 to 237 are an integral part of these consolidated financial statements.

Financial statements continued

Group Income Statement

Years ended 31 December

168 Annual Report on Form 20-F 2023 | riotinto.com

	Note	2023 US$m	2022 US$m Restated (a)	2021 US$m Restated (a)
Profit after tax for the year		9,953	13,048	22,597
Other comprehensive income/(loss)
Items that will not be reclassified to the income statement:
Re-measurement (losses)/gains on pension and post-retirement healthcare plans	28	(461)	578	1,026
Changes in the fair value of equity investments held at fair value through other comprehensive income (FVOCI)		(24)	—	5
Tax relating to these components of other comprehensive income	10	152	(123)	(305)
Share of other comprehensive (losses)/income of equity accounted units, net of tax		(3)	5	12
		(336)	460	738
Items that have been/may be subsequently reclassified to the income statement:
Currency translation adjustment(b)		644	(2,399)	(1,865)
Currency translation on subsidiary disposed of, transferred to the income statement		—	105	—
Fair value movements:
– Cash flow hedge gains/(losses)		30	(167)	(211)
– Cash flow hedge (gains)/losses transferred to the income statement		(39)	106	14
Net change in costs of hedging reserve	35	5	4	(18)
Tax relating to these components of other comprehensive loss	10	1	21	62
Share of other comprehensive income/(losses) of equity accounted units, net of tax		14	(27)	(12)
		655	(2,357)	(2,030)
Total other comprehensive income/(loss) for the year, net of tax		319	(1,897)	(1,292)
Total comprehensive income for the year		10,272	11,151	21,305
– attributable to owners of Rio Tinto		10,335	10,649	19,895
– attributable to non-controlling interests		(63)	502	1,410

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Excludes a currency translation gain of US$47 million (2022: charge of US$240 million; 2021: charge of US$211 million) arising on Rio Tinto Limited’s share capital for the year ended

31 December 2023, which is recognised in the Group statement of changes in equity. Refer to the Group statement of changes in equity on page 172.

The notes on pages 158 to 167 and pages 173 to 237 are an integral part of these consolidated financial statements.

Financial statements

Group Statement of Comprehensive Income

Years ended 31 December

Annual Report on Form 20-F 2023 | riotinto.com 169

	Note	2023 US$m	2022 US$m	2021 US$m
Cash flows from consolidated operations(a)		20,251	23,158	33,936
Dividends from equity accounted units		610	879	1,431
Cash flows from operations		20,861	24,037	35,367
Net interest paid		(612)	(573)	(438)
Dividends paid to holders of non-controlling interests in subsidiaries		(462)	(421)	(1,090)
Tax paid		(4,627)	(6,909)	(8,494)
Net cash generated from operating activities		15,160	16,134	25,345
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	1	(7,086)	(6,750)	(7,384)
Sales of property, plant and equipment and intangible assets		9	—	61
Acquisitions of subsidiaries, joint ventures and associates	5	(834)	(850)	—
Disposals of subsidiaries, joint ventures, joint operations and associates	5	—	80	4
Purchases of financial assets		(39)	(55)	(45)
Sales of financial assets(b)(c)		1,220	892	114
Net (funding of)/receipts from equity accounted units		(144)	(75)	6
Other investing cash flows(d)		(88)	51	85
Net cash used in investing activities		(6,962)	(6,707)	(7,159)
Cash flows before financing activities		8,198	9,427	18,186
Cash flows from financing activities
Equity dividends paid to owners of Rio Tinto	3	(6,470)	(11,727)	(15,357)
Proceeds from additional borrowings(e)	19, 20	1,833	321	1,488
Repayment of borrowings and associated derivatives(e)	19, 20	(310)	(790)	(1,707)
Lease principal payments	19	(426)	(374)	(358)
Proceeds from issue of equity to non-controlling interests		127	86	66
Purchase of non-controlling interest(f)	5, 30	(33)	(2,961)	—
Other financing cash flows		2	(28)	6
Net cash used in financing activities		(5,277)	(15,473)	(15,862)
Effects of exchange rates on cash and cash equivalents		(23)	15	100
Net increase/(decrease) in cash and cash equivalents		2,898	(6,031)	2,424
Opening cash and cash equivalents less overdrafts		6,774	12,805	10,381
Closing cash and cash equivalents less overdrafts	22	9,672	6,774	12,805

Notes to the Group Cash Flow Statement
(a) Cash flows from consolidated operations	Note	2023 US$m	2022 US$m	2021 US$m
Profit after tax for the year (comparative restated)(g)		9,953	13,048	22,597
Adjustments for:
– Taxation (comparative restated)(g)		3,832	5,614	8,236
– Finance items		1,713	1,846	26
– Share of profit after tax of equity accounted units		(675)	(777)	(1,042)
– Loss on disposal of interest in subsidiary	5	—	105	—
– Impairment charges of investments in equity accounted units after tax	4	—	202	—
– Net impairment charges/(reversals)	4	936	(150)	269
– Depreciation and amortisation		5,334	5,010	4,697
– Provisions (including exchange differences on provisions)		1,470	1,006	1,903
– Pension settlement		—	—	(291)
Utilisation of other provisions	36	(104)	(176)	(128)
Utilisation of provisions for close-down and restoration	14	(777)	(609)	(541)
Utilisation of provisions for post-retirement benefits and other employment costs	26	(277)	(254)	(231)
Change in inventories		(422)	(1,185)	(1,397)
Change in receivables and other assets(h)		(418)	20	(367)
Change in trade and other payables		(86)	700	685
Other items(i)		(228)	(1,242)	(480)
		20,251	23,158	33,936

(b)In 2023, we received net proceeds of US$1,157 million (2022: US$352 million and 2021: US$107 million) from our sales and purchases of investments within a separately managed portfolio of

fixed income instruments. Refer to note 19 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.

(c)In 2022, Sale of financial assets includes US$525 million of cash received from the sale of the gross production royalty at the Cortez Complex in Nevada, USA. Refer to note 1 and note 7.

(d)In 2022, Other investing cash flows includes inflows relating to payments from a trust fund controlled by the Government of Australia to Energy Resources Australia (ERA) for closure activity that

has been completed. At 31 December 2023 the total amount held in the trust fund was US$349 million (31 December 2022: US$329 million). In 2021, Other investing cash flows included a net

settlement upon completion of a transaction increasing the Group’s 60% share in the Diavik Diamond Mine to sole ownership.

(e)On 7 March 2023, we issued US$650 million 10-year fixed rate, and US$1.1 billion of 30-year fixed rate, SEC-registered bonds. The 10-year notes, which mature on 9 March 2033, have a coupon of

5% and the 30-year notes, which mature on 9 March 2053, have a coupon of 5.125%. The funds were received net of issuance fees and discount. There were no debt securities issued during the

year ended 31 December 2022. In 2021, we issued US$1.25 billion 30-years fixed rate SEC-registered debt securities, which expire on 2 November 2051, with a coupon of 2.75%. The funds were

received net of issuance fees and discount. We also completed a US$1.2 billion (nominal value) bond buyback program.

(f)On 16 December 2022, we acquired the remaining 49% share of Turquoise Hill Resources for expected consideration of US$3.2 billion inclusive of transaction fees. At 31 December 2022,

US$2,961 million had been paid, including US$33 million of transaction costs. In 2023, further transaction costs of US$33 million were paid, the balance to dissenting shareholders remains

unpaid.

(g)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(h)In 2021, the Mongolian Tax Authority required payment by Oyu Tolgoi of US$356 million in relation to disputed tax matters. Oyu Tolgoi continues to dispute the matters and has classified

amounts subject to international arbitration as prepayments pending resolution.

(i)Other items includes the recognition of realised losses of US$57 million on currency forwards not designated as hedges (2022: realised losses US$459 million, 2021: realised losses

US$131 million). In 2022, other items also included the deduction of the US$432 million relating to the gain recognised on sale of the Cortez royalty shown in “Sale of financial assets” and in

2021 other items included US$336 million relating to a gain on recognition of a new wharf at Kitimat, Canada with no associated cash flow.

The notes on pages 158 to 167 and pages 173 to 237 are an integral part of these consolidated financial statements.

Financial statements continued

Group Cash Flow Statement

Years ended 31 December

170 Annual Report on Form 20-F 2023 | riotinto.com

	Note	2023 US$m	2022 US$m Restated (a)
Non-current assets
Goodwill	11	797	826
Intangible assets	12	4,389	3,645
Property, plant and equipment	13	66,468	64,734
Investments in equity accounted units		4,407	3,298
Inventories	16	214	203
Deferred tax assets	15	3,624	2,796
Receivables and other assets	17	1,659	1,893
Other financial assets	23	481	406
		82,039	77,801
Current assets
Inventories	16	6,659	6,213
Receivables and other assets	17	3,945	3,478
Tax recoverable		115	347
Other financial assets	23	1,118	2,160
Cash and cash equivalents	22	9,673	6,775
		21,510	18,973
Total assets		103,549	96,774
Current liabilities
Borrowings	20	(824)	(923)
Leases	21	(345)	(292)
Other financial liabilities	23	(273)	(69)
Trade and other payables	18	(8,238)	(8,047)
Tax payable		(542)	(223)
Close-down and restoration provisions	14	(1,523)	(1,142)
Provisions for post-retirement benefits and other employment costs	26	(361)	(353)
Other provisions	36	(637)	(554)
		(12,743)	(11,603)
Non-current liabilities
Borrowings	20	(12,177)	(10,148)
Leases	21	(1,006)	(908)
Other financial liabilities	23	(513)	(904)
Trade and other payables	18	(596)	(604)
Tax payable		(31)	(36)
Deferred tax liabilities	15	(2,584)	(3,164)
Close-down and restoration provisions	14	(15,627)	(14,617)
Provisions for post-retirement benefits and other employment costs	26	(1,197)	(1,305)
Other provisions	36	(734)	(744)
		(34,465)	(32,430)
Total liabilities		(47,208)	(44,033)
Net assets		56,341	52,741
Capital and reserves
Share capital
– Rio Tinto plc	34	207	207
– Rio Tinto Limited	34	3,377	3,330
Share premium account		4,324	4,322
Other reserves	35	8,328	7,755
Retained earnings	35	38,350	35,020
Equity attributable to owners of Rio Tinto		54,586	50,634
Attributable to non-controlling interests		1,755	2,107
Total equity		56,341	52,741

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

The notes on pages 158 to 167 and pages 173 to 237 are an integral part of these consolidated financial statements.

The financial statements on pages 158 to 237 were approved by the directors on 21 February 2024 and signed on their behalf by

Dominic Barton Chair	Jakob Stausholm Chief Executive	Peter Cunningham Chief Financial Officer

Financial statements

Group Balance Sheet

At 31 December

Annual Report on Form 20-F 2023 | riotinto.com 171

Year ended 31 December 2023	Attributable to owners of Rio Tinto
	Share capital (note 34) US$m	Share premium account US$m	Other reserves (note 35) US$m	Retained earnings (note 35) US$m	Total US$m	Non- controlling interests US$m	Total equity US$m
Opening balance as previously reported	3,537	4,322	7,805	34,511	50,175	2,099	52,274
Adjustment for transition to new accounting pronouncements(a)	—	—	(50)	509	459	8	467
Restated opening balance	3,537	4,322	7,755	35,020	50,634	2,107	52,741
Total comprehensive income for the year(b)	—	—	585	9,750	10,335	(63)	10,272
Currency translation arising on Rio Tinto Limited's share capital	47	—	—	—	47	—	47
Dividends (note 3)	—	—	—	(6,466)	(6,466)	(462)	(6,928)
Newly consolidated operation (note 5)	—	—	—	—	—	33	33
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(c)	—	—	(78)	(17)	(95)	—	(95)
Change in equity interest held by Rio Tinto (note 30)	—	—	—	(13)	(13)	13	—
Treasury shares reissued and other movements	—	2	—	—	2	—	2
Equity issued to holders of non-controlling interests	—	—	—	—	—	127	127
Employee share awards charged to the income statement	—	—	66	76	142	—	142
Closing balance	3,584	4,324	8,328	38,350	54,586	1,755	56,341
Year ended 31 December 2022	Attributable to owners of Rio Tinto
	Share capital (note 34) US$m	Share premium account US$m	Other reserves (note 35) US$m	Retained earnings (note 35) US$m	Total US$m	Non- controlling interests US$m	Total equity US$m
Opening balance as previously reported(d)	3,777	4,320	9,998	33,320	51,415	5,158	56,573
Adjustment for transition to new accounting pronouncements(a)	—	—	(22)	537	515	8	523
Restated opening balance	3,777	4,320	9,976	33,857	51,930	5,166	57,096
Total comprehensive income for the year(b)	—	—	(2,193)	12,842	10,649	502	11,151
Currency translation arising on Rio Tinto Limited's share capital	(240)	—	—	—	(240)	—	(240)
Dividends (note 3)	—	—	—	(11,716)	(11,716)	(421)	(12,137)
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(c)	—	—	(84)	(16)	(100)	—	(100)
Change in equity interest held by Rio Tinto	—	—	—	701	701	(3,907)	(3,206)
Treasury shares reissued and other movements	—	2	—	—	2	—	2
Equity issued to holders of non-controlling interests	—	—	—	(711)	(711)	797	86
Employee share awards charged to the income statement	—	—	56	63	119	—	119
Transfers and other movements	—	—	—	—	—	(30)	(30)
Closing balance (restated)	3,537	4,322	7,755	35,020	50,634	2,107	52,741
Year ended 31 December 2021	Attributable to owners of Rio Tinto
	Share capital (note 34) US$m	Share premium account US$m	Other reserves (note 35) US$m	Retained earnings (note 35) US$m	Total US$m	Non- controlling interests US$m	Total equity US$m
Opening balance as previously reported	3,988	4,314	11,960	26,792	47,054	4,849	51,903
Adjustment for transition to new accounting pronouncements(a)	—	—	—	516	516	7	523
Restated opening balance	3,988	4,314	11,960	27,308	47,570	4,856	52,426
Total comprehensive income for the year(b)	—	—	(1,938)	21,833	19,895	1,410	21,305
Currency translation arising on Rio Tinto Limited's share capital	(211)	—	—	—	(211)	—	(211)
Dividends (note 3)	—	—	—	(15,385)	(15,385)	(1,090)	(16,475)
Share buyback	—	—	—	—	—	—	—
Own shares purchased from Rio Tinto shareholders to satisfy share awards to employees(c)	—	—	(95)	(18)	(113)	—	(113)
Change in equity interest held by Rio Tinto	—	—	—	76	76	(76)	—
Treasury shares reissued and other movements	—	6	—	—	6	—	6
Equity issued to holders of non-controlling interests	—	—	—	—	—	66	66
Employee share awards charged to the income statement	—	—	49	60	109	—	109
Closing balance	3,777	4,320	9,976	33,874	51,947	5,166	57,113

(a)The impact of adopting the narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Refer to the Group 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.

(c)Net of contributions received from employees for share awards.

(d)In 2022, the opening balance includes a US$17 million adjustment for the prospective adoption of Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, as reported

in the prior year financial statements.

The notes on pages 158 to 167 and pages 173 to 237 are an integral part of these consolidated financial statements.

Financial statements continued

Group Statement of Changes in Equity

172 Annual Report on Form 20-F 2023 | riotinto.com

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 Our financial performance by segment

Our management structure is based on product groups (PG) 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 (CODM) and

is responsible for allocating resources and assessing performance of the operating segments. The CODM’s primary measure of profit is underlying

EBITDA.

The Copper reportable segment has been adjusted to reflect a change in management responsibility for the Simandou iron ore project in Guinea

(Simandou) to the Chief Technical Officer for the build phase of this project. As a result, Simandou is now included in "Other Operations", which is

below reportable segments in our segmental analysis. Prior year comparatives have been adjusted accordingly.

Our reportable segments are as follows:

Reportable segment	Principal activities
Iron Ore	Iron ore mining and salt and gypsum production in Western Australia.
Aluminium	Bauxite mining; alumina refining; aluminium smelting.
Copper	Mining and refining of copper, gold, silver, molybdenum, other by-products and exploration activities.
Minerals	Includes mining and processing of borates, titanium dioxide feedstock, and iron concentrate and pellets from the Iron Ore Company of Canada. Also includes diamond mining, sorting and marketing and development projects for battery materials, such as lithium.

	2023
	Segmental revenue US$m	Underlying EBITDA US$m	Capital expenditure(a) US$m
Iron Ore	32,249	19,974	2,588
Aluminium	12,285	2,282	1,331
Copper	6,678	1,904	1,976
Minerals	5,934	1,414	746
Reportable segments total	57,146	25,574	6,641
Other operations	142	(578)	323
Inter-segment transactions	(231)	8
Share of equity accounted units(b)	(3,016)
Central pension costs, share-based payments, insurance and derivatives		168
Restructuring, project and one-off costs		(190)
Central costs		(990)
Central exploration and evaluation expenditures		(100)
Proceeds from disposal of property, plant and equipment			9
Other items			113
Consolidated sales revenue/Purchases of property, plant and equipment and intangible assets	54,041		7,086
Underlying EBITDA		23,892

(a)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 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations.

(b)Consolidated sales revenue includes subsidiary sales of US$20 million (2022: US$50 million; 2021: US$44 million) to equity accounted units which are not included in segmental revenue.

Segmental revenue includes the Group’s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$3,036 million (2022: US$2,900 million;

2021: US$3,117 million) which are not included in consolidated sales revenue.

Financial statements

Notes to the 2023 financial statements

Annual Report on Form 20-F 2023 | riotinto.com 173

1 Our financial performance by segment continued

	2022 Adjusted(a)			2021 Adjusted(a)
	Segmental revenue US$m	Underlying EBITDA US$m	Capital expenditure(b) US$m	Segmental revenue US$m	Underlying EBITDA US$m	Capital expenditure(b) US$m
Iron Ore	30,906	18,612	2,940	39,582	27,592	3,947
Aluminium	14,109	3,672	1,377	12,695	4,382	1,300
Copper	6,699	2,565	1,622	7,827	4,027	1,328
Minerals	6,754	2,419	679	6,481	2,603	644
Reportable segments total	58,468	27,268	6,618	66,585	38,604	7,219
Other operations	192	(205)	53	251	(86)	(13)
Inter-segment transactions	(256)	24		(268)	42
Share of equity accounted units(c)	(2,850)			(3,073)
Central pension costs, share-based payments, insurance and derivatives		377			110
Restructuring, project and one-off costs		(173)			(80)
Central costs		(766)			(613)
Central exploration and evaluation expenditures		(253)			(257)
Proceeds from disposal of property, plant and equipment			—			61
Other items			79			117
Consolidated sales revenue/Purchases of property, plant and equipment and intangible assets	55,554		6,750	63,495		7,384
Underlying EBITDA		26,272			37,720

(a)Comparative information has been adjusted to reflect the movement of the Simandou iron ore project from the "Copper" reportable segment to "Other operations".

(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 100% of subsidiaries’ capital expenditure and Rio Tinto’s share of the capital expenditure of joint operations.

(c)Consolidated sales revenue includes subsidiary sales of US$20 million (2022: US$50 million; 2021: US$44 million) to equity accounted units which are not included in segmental revenue.

Segmental revenue includes the Group’s proportionate share of product sales by equity accounted units (after adjusting for sales to subsidiaries) of US$3,036 million (2022: US$2,900 million;

2021: US$3,117 million) which are not included in consolidated sales revenue.

Segmental revenue

Segmental revenue includes consolidated sales revenue plus the equivalent sales revenue of equity accounted units 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 183 and Our

operating assets section on page 187, respectively.

Underlying EBITDA

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:

–Depreciation and amortisation in subsidiaries and equity accounted units;

–Taxation and finance items in equity accounted units;

–Taxation and finance items relating to subsidiaries;

–Unrealised gains/(losses) on embedded derivatives not qualifying for hedge accounting;

–Net gains/(losses) on disposal of interests in subsidiaries;

–Impairment charges net of reversals;

–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

2023, this includes 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. In 2022 this category included the gain recognised by Kitimat relating to LNG Canada's project and

the gain recognised upon sale of the Cortez royalty. In 2021 the category included the changes in closure estimates at Energy Resources of

Australia and Gove Refinery.

Financial statements continued

Notes to the 2023 financial statements

174 Annual Report on Form 20-F 2023 | riotinto.com

	2023 US$m	2022 US$m Restated(a)	2021 US$m Restated(a)
Profit after tax for the year	9,953	13,048	22,597
Taxation	3,832	5,614	8,236
Profit before taxation	13,785	18,662	30,833
Depreciation and amortisation in subsidiaries excluding capitalised depreciation(b)	4,976	4,871	4,525
Depreciation and amortisation in equity accounted units	484	470	497
Finance items in subsidiaries	1,713	1,846	26
Taxation and finance items in equity accounted units	741	640	759
(Gains)/losses on embedded commodity derivatives not qualifying for hedge accounting (including foreign exchange)	(15)	(6)	51
Impairment charges net of reversals(c)	936	52	269
Gain recognised by Kitimat relating to LNG Canada's project(d)	—	(116)	(336)
Change in closure estimates (non-operating and fully impaired sites)(e)	1,272	180	1,096
Loss on disposal of interests in subsidiary(c)	—	105	—
Gain on sale of the Cortez royalty(f)	—	(432)	—
Underlying EBITDA	23,892	26,272	37,720

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Depreciation and amortisation in subsidiaries for the year ended 31 December 2023 is net of capitalised depreciation of US$358 million (2022: US$139 million; 2021: US$172 million).

(c)Refer to note 4 for details.

(d)During 2022, LNG Canada elected to terminate their option to purchase additional land and facilities for expansion of their operations at Kitimat, Canada. The resulting gain was excluded from

underlying EBITDA consistent with prior years as it was part of a series of transactions that together were material. On 3 December 2021 we gained control over a new wharf at Kitimat, Canada

that was built and paid for by LNG Canada. The gain on recognition was excluded from underlying EBITDA on the grounds of individual magnitude and consistency with the associated

impairment charge in 2021. Refer to note 4 for details.

(e)In 2023 the charge includes US$0.9 billion related to the closure provision update announced by Energy Resources of Australia on 12 December 2023 together with the update included in their

half year results for the period ended 30 June 2023, published in August. This update was considered material and therefore it was aggregated with other closure study updates (see note 14)

which were similar in nature and have been excluded from underlying EBITDA. The other closure study updates were at legacy sites managed by our central closure team as well as an update

at Yarwun alumina refinery which was expensed due to the impairment earlier in the year. In 2022, the charge related to re-estimates of underlying closure cash flows for legacy sites where the

environmental damage preceded ownership by Rio Tinto. In 2021, the closure provision increase excluded from underlying earnings was attributable to study updates at Energy Resources of

Australia, Diavik, Gove refinery, and a number of the Group's legacy sites where the environmental damage preceded ownership by Rio Tinto.

(f)On 2 August 2022, we completed the sale of a gross production royalty which was retained following the disposal of the Cortez Complex in 2008. The gain recognised on sale of the royalty was

excluded from underlying EBITDA on the grounds of individual magnitude.

2 Earnings per ordinary share

Basic earnings per share

	2023	2022 Restated(a)	2021 Restated(a)
Net earnings attributable to owners of Rio Tinto (US$ million)	10,058	12,392	21,115
Weighted average number of shares (millions)(b)	1,621.4	1,619.8	1,618.4
Basic earnings per ordinary share (cents)	620.3	765.0	1,304.7

Diluted earnings per share

For the purposes of calculating diluted earnings per share, the effect of dilutive securities of 10.1 million shares in 2023 (2022: 9.8 million; 2021:

10.5 million) is added to the weighted average number of shares described in footnote (b) 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 27.

	2023	2022 Restated(a)	2021 Restated(a)
Net earnings attributable to owners of Rio Tinto (US$ million)	10,058	12,392	21,115
Weighted average number of shares (millions)(b)	1,631.5	1,629.6	1,628.9
Diluted earnings per share attributable to ordinary shareholders of Rio Tinto (cents)	616.5	760.4	1,296.3

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)The weighted average number of shares is calculated as the average number of Rio Tinto plc shares outstanding not held as treasury shares of 1,250.5 million (2022: 1,248.9 million; 2021:

1,247.4 million) plus the average number of Rio Tinto Limited shares outstanding of 370.9 million (2022: 370.9 million; 2021: 371.0 million) over the relevant period. There were no cross

holdings of shares between Rio Tinto Limited and Rio Tinto plc at 31 December 2023 (2022: nil; 2021: nil).

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 175

3 Dividends

Our Directors have announced a final dividend of 258.0 cents per share on 21 February 2024. This is expected to result in payments of

US$4.2 billion. The dividend will be paid on 18 April 2024 to Rio Tinto plc and Rio Tinto Limited shareholders on the register at the close of business

on 8 March 2024. Dividends per share announced for the year ended 31 December are as follows:

	2023	2022	2021
Ordinary dividends per share: announced with the results for the year	258.0c	225.0c	417.0c
Special dividends per share: announced with the results for the year(a)	—	—	62.0c

(a)Dividends are determined in US dollars, which is our functional currency, and declared in British pounds for Rio Tinto Plc and Australian dollars for Rio Tinto Limited. The applicable currency

exchange rate to convert the US dollar dividend into British pounds and Australian dollars is determined with reference to the WMR 4pm (UK) fixings on the day prior to the announcement of our

results for the year. Ordinary shareholders of Rio Tinto Limited and Rio Tinto Plc are paid equal cash dividends on a per share basis in line with the terms of the dual-listed structure.

Total dividends per share paid in the year

	Dividends per share 2023	Dividends per share 2022	Dividends per share 2021
Previous year final - paid during the year (US cents)	225.0c	417.0c	309.0c
Previous year special - paid during the year (US cents)	—	62.0c	93.0c
Interim - paid during the year (US cents)	177.0c	267.0c	376.0c
Interim special - paid during the year (US cents)	—	—	185.0c
Total paid during the year (US cents)	402.0c	746.0c	963.0c

	Dividends per share 2023	Dividends per share 2022	Dividends per share 2021
Rio Tinto plc previous year final (pence)	185.4p	306.7p	221.9p
Rio Tinto plc previous year special (pence)	—	45.6p	66.8p
Rio Tinto plc interim (pence)	137.7p	221.6p	270.8p
Rio Tinto plc interim special (pence)	—	—	133.3p
Total paid during the year (pence)	323.1p	573.9p	692.8p
Rio Tinto Limited previous year final – fully franked at 30% (Australian cents)	326.5c	577.0c	397.5c
Rio Tinto Limited previous year special – fully franked at 30% (Australian cents)	—	85.8c	119.6c
Rio Tinto Limited interim – fully franked at 30% (Australian cents)	260.9c	383.7c	509.4c
Rio Tinto Limited interim special – fully franked at 30% (Australian cents)	—	—	250.6c
Total paid during the year (Australian cents)	587.4c	1,046.5c	1,277.1c

The franking credits available to the Group as at 31 December 2023, after allowing for Australian tax payable in respect of the current and prior

reporting period’s profit, are estimated to be US$8,734 million (2022: US$7,246 million; 2021: US$6,611 million).

The proposed Rio Tinto Limited dividend will be fully franked based on a tax rate of 30%, and reduce the franking account balance by

US$410 million.

Reconciliation of dividend declared to dividend paid

	2023 US$m	2022 US$m	2021 US$m
Rio Tinto plc previous year final dividend payable	2,875	5,024	3,809
Rio Tinto plc previous year special dividend payable	—	747	1,146
Rio Tinto plc interim dividend payable	2,147	3,162	4,627
Rio Tinto plc interim special dividend payable	—	—	2,276
Rio Tinto Limited previous year final dividend payable	815	1,597	1,138
Rio Tinto Limited previous year special dividend payable	—	237	343
Rio Tinto Limited interim dividend payable	629	949	1,372
Rio Tinto Limited interim special dividend payable	—	—	674
Dividends payable during the year	6,466	11,716	15,385
Net movement of unclaimed dividends in the year	4	11	(28)
Dividends paid during the year(b)	6,470	11,727	15,357

(b)We economically hedge the dividend cash flows from the announcement date to the payment date in order to reduce our foreign exchange exposure on these cash flows. The realised impact of

these hedges is shown within ‘Other items’ in the Cash flows from consolidated operations and is not included in the above.

Financial statements continued

Notes to the 2023 financial statements

176 Annual Report on Form 20-F 2023 | riotinto.com

4 Impairment charges net of reversals

Recognition and measurement

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 cash-generating units 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 cash-generating unit or groups of cash-generating units 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. All cash-generating units containing goodwill (note 11), indefinite-lived intangible assets and intangible assets that

are not ready for use (note 12) are tested annually for impairment as at 30 September, regardless of whether there has been an impairment trigger,

or more frequently if events or changes in circumstances indicate a potential impairment charge.

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 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.

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 cash-generating unit 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 cash-generating unit in prior periods.

In 2023, we identified indicators of impairment at the Gladstone alumina refineries in the Aluminium segment and indicators of impairment reversal

at the Simandou project. Refer to page 179 for details. 

Key judgement - indicators of impairment and impairment reversals

The Oyu Tolgoi and Kitimat cash-generating units have both been impaired in previous years and are therefore monitored closely for

indicators of further impairment or impairment reversal as such adjustments would likely be material to our results. At the time of their

impairment, the carrying value and fair value for these CGUs were equal, making the CGUs sensitive to changes in economic assumptions,

albeit headroom may have subsequently arisen due to the passage of time.

Oyu Tolgoi

We assessed the Oyu Tolgoi CGU for internal sources of information that could indicate impairment or impairment reversal by reference to the

operational performance of the mine and development progress for the underground operation. For external sources of information that could

indicate impairment or impairment reversal, we considered current and projected commodity prices. We concluded that there were no

indicators of impairment or impairment reversal.

Kitimat

The Kitimat smelter was impaired in 2013 and 2014 during the construction phase as cost overruns were not expected to be recovered

through economic performance. The plant was further impaired in 2021 (refer to page 180 for details) as operational performance was

adversely impacted by a workforce strike in June 2021 that has reduced the capacity over a prolonged period.

In 2023, the operational performance of the plant was considered as part of the assessment of internal sources of information for evidence of

impairment or impairment reversal. As highlighted in the climate change section, the economic performance of assets in the aluminium

segment has the potential to perform more strongly as the world transitions to a lower carbon future; however, our assessment of external

sources of information did not indicate that this had yet been priced into asset valuations. We concluded that there were no indicators of

impairment or 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 cash-generating unit in its current

condition) and fair value less costs of disposal (FVLCD). When the recoverable amount of the cash-generating unit 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 cash-generating unit being tested. The Group considers that the best evidence of FVLCD is the value obtained from an active

market or binding sale agreement and, in this case, the recoverable amount is classified in the fair value hierarchy as level 1. When FVLCD is based

on quoted prices for equity instruments but adjusted to reflect factors such as a lack of liquidity in the market, the recoverable amount is classified as

level 2 in the fair value hierarchy. No cash-generating units are currently assessed for impairment by reference to a recoverable amount based on

FVLCD classified as level 1 or level 2.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 177

4 Impairment charges net of reversals continued

Where unobservable inputs are material to the measurement of the recoverable amount, FVLCD is based on the best information available to reflect

the amount the Group could receive for the cash-generating unit 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.

Where the recoverable amount is assessed using FVLCD based on discounted cash flow techniques, 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.

The cash flow forecasts for FVLCD purposes are based on management’s best estimates of expected future revenues and costs, including the

future cash costs of production, capital expenditure, and closure, restoration and environmental costs. For the purposes of determining FVLCD from

a market participant’s perspective, the cash flows incorporate management’s price and cost assumptions in the short and medium term. In the

longer term, operating margins are assumed to remain constant where appropriate, as it is considered unlikely that a market participant would

prepare detailed forecasts over a longer term. The cash flow forecasts may include net cash flows expected to be realised from the extraction,

processing and sale of material that does not currently qualify for inclusion in mineral reserves. Such non-reserve material is only included when

there is a high degree of confidence in its economic extraction. This expectation is usually based on preliminary drilling and sampling of areas of

mineralisation that are contiguous with existing ore reserves. Typically, the additional evaluation required to achieve reserves status for such

material has not yet been done because this would involve incurring evaluation costs earlier than is required for the efficient planning and operation

of the mine.

As noted above, cost levels incorporated in the cash flow forecasts for FVLCD purposes are based on the current life-of-mine plan or long-term

production plan for the cash-generating unit. 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.

Where the recoverable amount of a cash-generating unit 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 three to five 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 mineral 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 cash-generating unit take into account the sales prices under existing sales contracts.

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 cash-generating units operate. For final feasibility studies and mineral 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 five 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.

Financial statements continued

Notes to the 2023 financial statements

178 Annual Report on Form 20-F 2023 | riotinto.com

		2023				2022	2021
	Note	Pre-tax amount US$m	Taxation US$m	Non- controlling interest US$m	Net amount US$m	Pre-tax amount US$m	Pre-tax amount US$m
Aluminium - Alumina refineries		(1,175)	347	—	(828)	—	—
Aluminium – Pacific Aluminium		—	—	—	—	(202)	—
Aluminium - Kitimat		—	—	—	—	—	(269)
Other operations - Simandou		239	152	(215)	176	—	—
Other operations - Roughrider		—	—	—	—	150	—
Total impairment charges net of reversals		(936)	499	(215)	(652)	(52)	(269)
Allocated as:
Intangible assets	12	231				150	—
Property, plant and equipment	13	(1,167)				—	(269)
Investment in equity accounted units (EAUs)		—				(202)	—
Total impairment charges net of reversals		(936)				(52)	(269)
Comprising:
Net impairment (charges)/reversals of consolidated balances					(936)	150	(269)
Impairment (charges) related to EAUs (pre-tax)					—	(202)	—
Total impairment charges net of reversals					(936)	(52)	(269)
Taxation (including related to EAUs)					499	—	72
Non-controlling interests					(215)	—	—
Total impairment charges net of reversals in the income statement					(652)	(52)	(197)

2023

Aluminium - Alumina refineries, Australia

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 March 2023, the Australian Parliament legislated to introduce a requirement for large

heavy industrial carbon emitters to purchase carbon credits based on their scope 1 emissions with a reducing baseline for these emissions. The

challenging market conditions facing these assets, together with our improved understanding of the capital requirements for decarbonisation and the

now legislated cost escalation for carbon emissions, were identified as impairment triggers during the six months ended 30 June 2023.

Using a fair value less cost of disposal methodology and discounting real-terms post-tax cash flows at 6.6%, we have 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 Queensland Alumina

Limited (QAL). These impairments reflect market participant assumptions and the difficult trading conditions for these assets which were operating

below our planned output.

For QAL, the recoverable amount (net present value of US$325 million) was represented by future cash flows attributable to the double digestion

project. This major capital project improves the energy efficiency of the alumina production process and significantly reduces carbon emissions.

These cash flows were risk adjusted to reflect the pre-feasibility study stage of project evaluation. If investment in the double digestion project is not

approved, the post-tax impairment charge would be US$325 million greater and result in a full impairment of QAL.

Impact of climate change on our business - Gladstone alumina refineries

We are committed to the decarbonisation of our assets to reduce Scope 1 and 2 emissions by 50% by 2030 and to net zero emissions by

2050 relative to our 2018 equity baseline. We anticipate that further carbon action may be necessary to align with the goals of the Paris

agreement to limit temperature increases to 1.5oC. To illustrate the sensitivity of the refinery valuations to the cost of carbon credits, we have

modelled a 10% increase in those unit costs across all years, before the impact of decarbonisation projects with all other inputs to the 30 June

2023 impairment valuation remaining constant. For QAL, this sensitivity indicated a reduction in the pre-tax value by US$99 million; however

this is expected to be largely mitigated by decarbonisation projects, including double digestion. There was no impact at Yarwun as all property,

plant and equipment was already fully impaired.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 179

4 Impairment charges net of reversals continued

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 the second half of 2023, we concluded key agreements with the Republic of

Guinea and Winning Consortium Simandou (WCS) on the trans-Guinean infrastructure for the Simandou project and progressed agreements with

our joint venture partners that will enable the development of the Simandou iron-ore mine. We therefore concluded that although development

agreements remain subject to regulatory approvals, the key uncertainties that gave rise to the 2015 impairment have reversed and consequently an

impairment reversal trigger was identified at 1 October 2023.

Revisions to the Investment Framework and changes to the proposed infrastructure arrangements since 2015 mean that historical costs associated

with these items have been superseded and therefore the attributable asset cost and accumulated impairment associated with these items have

been permanently derecognised.  Previously capitalised exploration and evaluation costs associated with the mine and retained items of property,

plant and equipment that continue to be relevant to the Simandou project development have been assessed for impairment reversal. The

recoverable amount of the cash-generating unit measured on a fair value less cost of disposal basis, is significantly greater than the historical cost

of the remaining impaired assets and therefore supports a full reversal of their previously recorded impairment charge. The pre-tax impairment

reversal of US$239 million is 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 has been recorded to account for the difference between the asset values included in the Group

accounts and the carrying value of in-country depreciable assets. Under our Aspirational Leadership pricing scenario, increases in carbon pricing

are expected to drive demand for the higher-grade iron ore at Simandou which would indicate a higher recoverable value. As the previous

impairment has been fully reversed, this Paris aligned-sensitivity would not result in a different impairment reversal.

All spend on the Simandou project between the impairment in 2015 and 30 September 2023 was expensed as incurred. With effect from 1 October

2023, qualifying spend is capitalised.

2022

Other operations - Roughrider, Canada

On 17 October 2022, we completed the sale of the Roughrider uranium undeveloped project located in the Athabasca Basin in Saskatchewan,

Canada for US$150 million (US$80 million in cash and US$70 million in shares of Uranium Energy Corp.). The project was fully impaired during the

year ended 31 December 2017 due to significant uncertainty over whether commercially viable quantities of mineral resources could be identified at

a future date. The sale therefore led to an impairment reversal during the year ended 31 December 2022. It also led to a loss on disposal being

recognised of US$105 million arising from the recycling of the currency translation reserve to the income statement.

Aluminium - Pacific Aluminium, Australia and New Zealand

The operating and economic performance of the Boyne Smelter in Queensland, Australia was below our expectations in 2022. The plant operated

with reduced capacity and the economic performance suffered due to the high cost of energy from the coal-fired Gladstone Power Station. These

conditions were identified as an impairment trigger. We calculated a recoverable amount for the cash-generating unit based on post-tax cash flows,

expressed in real terms and discounted using a post-tax rate of 6.6% over the period to 2029. This date was chosen as it coincided with both the

remaining term of the Boyne Smelter joint venture agreements and the Group’s Paris-aligned commitment to reduce carbon emissions by 50% by

2030 relative to the 2018 baseline. Despite the implementation of temporary energy price caps by the Australian Government in 2022, this resulted

in an impairment charge of US$202 million, representing a full impairment of the carrying value of the Boyne Smelter investment in equity accounted

unit.

2021

Aluminium – Kitimat, Canada

On 3 December 2021, we announced completion of the newly-constructed wharf at Kitimat. Construction spend was incurred by LNG Canada and

therefore a gain of US$336 million representing the estimated fair value of the cost of construction was recorded and the carrying value of the

Kitimat CGU increased accordingly. Output from the smelter was reduced to 25% as a result of a workforce strike in mid-2021 and ramp-up to full

capacity was expected to extend through into 2022. As a previously impaired CGU, and therefore carrying limited headroom, these factors were

identified as conditions that could indicate that the uplifted carrying value may not be supportable and therefore the CGU was tested for impairment.

Using the fair value less cost of disposal methodology and discounting real-terms post-tax cash flows at 6.6%, we recognised a post-tax impairment

charge of US$197 million (pre-tax US$269 million) representing the difference between the recoverable amount (US$3,126 million) and the carrying

value (US$3,323 million).

Financial statements continued

Notes to the 2023 financial statements

180 Annual Report on Form 20-F 2023 | riotinto.com

5 Acquisitions and disposals

Acquisitions

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 Group 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.

2023

On 8 November 2023 we acquired Meridian Minera Limitada’s (MML)

57.7% share in Agua de la Falda (ADLF) for US$45 million.

Subsequently, we entered into an agreement with Corporación Nacional

del Cobre de Chile (Codelco), a state-owned enterprise, to explore and

potentially acquired assets in Chile’s prospective Atacama region - the

project will be known as Nuevo Cobre.

The majority ownership of 57.7% equity confers voting rights that will

allow Rio Tinto to control the relevant activities of Nuevo Cobre.

Therefore, we have accounted for Nuevo Cobre as an investment in a

partially owned subsidiary. There was no goodwill recognised on 

acquisition as the transaction was not accounted for as a business

combination. The difference between the net assets acquired and the

purchase consideration has been recognised within Intangible assets as

Exploration and Evaluation assets. The transaction gives rise to the

recognition of a non-controlling interest of US$33 million, representing

Codelco’s 42.3% equity stake in Nuevo Cobre.

On 30 November 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 six aluminium recycling facilities in the USA for combined

consideration of US$738 million, inclusive of accrued transaction costs

and working capital adjustments.

Rio Tinto has joint control over the Matalco businesses and therefore

our investment is accounted for under the equity method.

At 31 December 2023, the fair value of the underlying identifiable assets

acquired and liabilities assumed have been provisionally determined

and will be finalised within one year of the acquisition date in line with

the requirements of IFRS.

2022

Following approval from Australia’s Foreign Investment Review Board

(FIRB), on 29 March 2022 we completed the acquisition of Rincon

Mining Pty Limited, the owner of a lithium project in Argentina. Total

cash consideration was US$825 million. In determining whether

Rincon’s set of activities is a business, we assessed whether it had

inputs and substantive processes which together significantly contribute

to the ability to create outputs. Based on this assessment, we

concluded that Rincon did not meet the definition of a business as

defined by IFRS 3 "Business Combinations" and therefore no goodwill

was recorded. The transaction was therefore treated as an asset

purchase with US$822 million of capitalised exploration and evaluation

recorded for the principal economic resource. The balance of total

consideration was allocated to property, plant and equipment and other

assets/liabilities. For the Group cash flow statement we determined that,

since Rincon constitutes a group of companies, it was appropriate to

present the cash outflow as “Acquisitions of subsidiaries, joint ventures

and associates” rather than as separate asset purchases even though it

did not meet the definition of a business combination.

On 31 August 2022 we made a US$25 million investment in McEwen

Copper Inc. through our copper leaching technology venture, NutonTM.

We accounted for our holding in McEwen Copper Inc. as an investment

in associate, given our representation on their Board.

On 16 December 2022 we acquired the remaining 49% share of

Turquoise Hill Resources for expected consideration of US$3.2 billion,

inclusive of transaction costs. This transaction was not classified as a

business combination as it related to the purchase of non-controlling

interests in an entity already consolidated as a subsidiary. Accordingly,

the transaction did not result in the remeasurement of assets or

liabilities and has been accounted for in the statement of equity as an

adjustment to non-controlling interests and retained earnings.

At 31 December 2022, consideration paid amounted to US$2,961 million,

including US$33 million of transaction costs. In 2023, a further $33 million

of transaction costs were paid (previously expected to be US$41 million).

Certain shareholders exercised their right to dissent to the transaction. In

accordance with the terms of the circular, those dissenting shareholders

received initial consideration of C$34.4 per share, with final consideration

depending on the outcome and timing of dissent proceedings, which at

the end of 2023 remained outstanding. We included within Other

provisions (note 36) US$211 million for additional consideration to be paid

to the dissenting shareholders representing the difference between their

initial consideration and C$43 per share paid to all other shareholders.

2021

On 18 November 2021, we announced that we had completed the

acquisition of the 40% share in the Diavik Diamond Mine in the

Northwest Territories of Canada held by Dominion Diamond Mines,

becoming the sole owner as a result. The transaction did not meet the

definition of a business combination and therefore the incremental

assets and liabilities were treated as an asset purchase. Prior to

purchase, we recognised our existing 60% share of assets, revenues

and expenses, with liabilities recognised according to its contractual

obligations, and a corresponding 40% receivable or contingent asset

representing the co-owner’s share where applicable. Receivables

relating to the co-owner’s share were de-recognised and treated as part

of the net purchase consideration on completion.

Disposals

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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 181

5 Acquisitions and disposals continued

2023

On 28 August 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). The consideration received is recorded in the

cash flow statement for US$104 million (net of US$1 million of cash

balance), of which US$16 million relating to sale of land is included

within “net cash used in investing activities” and the remaining US$88

million is included within “net cash generated from operating activities”.

As a result of the sale, our retained interest in La Granja represents a

45% owned associate (equity accounted) over which Rio Tinto has

significant influence during the evaluation phase.

On initial recognition, the gain on fair valuation of interest retained in the

project of US$85 million was recognised to the extent of US$47 million

(relating to the 55% interest sold) within “profit relating to interests in

undeveloped projects” and the remaining gain of US$38 million was

eliminated against the fair value of the EAU. 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.

2022

As summarised in note 4, we sold our shareholding in the Roughrider

uranium undeveloped project on 17 October 2022 for consideration of

US$150 million (US$80 million in cash and US$70 million in shares of

Uranium Energy Corp). This transaction was treated as a disposal of a

subsidiary as the carrying value was largely represented by assets

recorded as a purchase price allocation from the Hathor Exploration

business combination in 2012.

2021

There were no material disposals in 2021.

6 Revenue by destination and product

Recognition and measurement

We recognise sales revenue related to the transfer of promised goods

or services when control of the goods or services passes to the

customer. The amount of revenue recognised reflects the consideration

to which the Group is or expects to be entitled in exchange for those

goods or services.

Sales revenue is recognised on individual sales when control transfers

to the customer. In most instances, control passes and sales revenue is

recognised when the product is delivered to the vessel or vehicle on

which it will be transported once loaded, the destination port or the

customer’s premises. There may be circumstances when judgement is

required based on the five indicators of control below:

–The customer has the significant risks and rewards of ownership

and has the ability to direct the use of, and obtain substantially all of

the remaining benefits from, the good or service.

–The customer has a present obligation to pay in accordance with

the terms of the sales contract. For shipments under the Incoterms

cost, insurance and freight (CIF)/carriage paid to (CPT)/cost and

freight (CFR), this is generally when the ship is loaded, at which

time the obligation for payment is for both product and freight.

–The customer has accepted the asset. Sales revenue may be

subject to adjustment if the product specification does not conform

to the terms specified in the sales contract but this does not impact

the passing of control. Assay and specification adjustments have

historically been immaterial.

–The customer has legal title to the asset. The Group usually retains

legal title until payment is received for credit risk purposes only.

–The customer has physical possession of the asset. This indicator

may be less important as the customer may obtain control of an

asset prior to obtaining physical possession, which may be the case

for goods in transit.

Revenue is principally derived from sale of commodities. We sell the

majority of our products on CFR or CIF Incoterms. This means that the

Group is responsible (acts as principal) for providing shipping services

and, in some instances, insurance after the date at which control of

goods passes to the customer at the loading port. The Group, therefore,

has separate performance obligations for freight and insurance services

that are provided solely to facilitate the sale of the products it produces.

Other Incoterms commonly used by the Group are free on board (FOB),

where the Group has no responsibility for freight or insurance once

control of the goods has passed at the loading port, and delivered at

place (DAP), where control of the goods passes when the product is

delivered to the agreed destination. For these Incoterms, there is only

one performance obligation, being the provision of product at the point

where control passes.

Within each sales contract, each unit of product shipped is a separate

performance obligation. Revenue is generally recognised at the

contracted price as this reflects the standalone selling price. Sales

revenue excludes any applicable sales taxes. Sales of copper

concentrate are stated net of the treatment and refining charges, which

will be required to convert it to an end product.

The Group’s products are sold to customers under contracts that vary in

tenure and pricing mechanisms, including some volumes sold on the

spot market. Pricing for iron ore is on a range of terms, the majority

being either monthly or quarterly average pricing mechanisms, with a

smaller proportion of iron ore volumes being sold on the spot market.

Certain of the Group’s products may be provisionally priced at the date

revenue is recognised and a provisional invoice issued; however,

substantially all iron ore and aluminium sales are reflected at final prices

in the results for the period. Provisionally priced receivables are

subsequently measured at fair value through the income statement

under IFRS 9 “Financial Instruments” as described in note 24. The final

selling price for all provisionally priced products is based on the price for

the quotational period stipulated in the contract. Final prices for copper

concentrate are normally determined between 30 and 120 days after

delivery to the customer. The change in value of the provisionally priced

receivable is based on relevant forward market prices and is included in

sales revenue. Refer to “Other revenue” within the sales by product

disclosure below.

Revenues from the sale of significant by-products, such as gold, are

included in sales revenue. Third-party commodity swap arrangements

principally for delivery and receipt of smelter-grade alumina are offset

within operating costs. The sale and purchase of third-party production

for own use or to mitigate shortfalls in our production are accounted for

on a gross basis with sales presented within revenue from contracts

with customers. Other operating income includes revenue incidental to

the main revenue-generating activities of the operations and is treated

as a credit to operating costs.

Typically, the Group has a right to payment before or at the point that

control of the goods passes, including a right, where applicable, to

payment for provisionally priced products and unperformed freight and

insurance services. Cash received before control passes is recognised as

a contract liability. The amount of consideration does not contain a

significant financing component as payment terms are less than one year.

We have a number of long-term contracts to supply products to

customers in future periods. Generally, revenue is recognised on an

invoice basis, as each unit sold is a separate performance obligation and

therefore the right to consideration from a customer corresponds directly

with our performance completed to date.

We do not disclose sales revenue from freight and insurance services

separately as we do not consider that this is necessary in order to

understand the impact of economic factors on the Group. Our Chief

Executive, the chief operating decision maker 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.  

Financial statements continued

Notes to the 2023 financial statements

182 Annual Report on Form 20-F 2023 | riotinto.com

Consolidated sales revenue by destination(a)

	2023 %	2022 %	2021 %	2023 US$m	2022 US$m	2021 US$m
Greater China (includes Taiwan)	59.6	54.3	59.7	32,193	30,172	37,878
United States of America	13.9	15.9	12.6	7,516	8,823	8,012
Asia (excluding Greater China and Japan)	7.2	7.1	6.9	3,881	3,937	4,415
Japan	6.9	7.4	7.9	3,727	4,091	5,012
Europe (excluding UK)	5.3	6.5	5.2	2,859	3,618	3,271
Canada	2.9	3.1	2.6	1,588	1,743	1,677
Australia	1.7	1.9	1.8	923	1,047	1,122
UK	0.1	0.3	0.4	81	182	243
Other countries	2.4	3.5	2.9	1,273	1,941	1,865
Consolidated sales revenue	100	100	100	54,041	55,554	63,495

(a)Consolidated sales revenue by geographical destination is based on the ultimate country of the product's destination, if known. Where the ultimate destination is not known, we have defaulted to

the shipping address of the customer. Rio Tinto is domiciled in both the UK and Australia.

Consolidated sales revenue by product

We have sold the following products to external customers during the year:

	2023
	Revenue from contracts with customers US$m	Other revenue(a) US$m	Consolidated sales revenue US$m
Iron ore	33,383	389	33,772
Aluminium, alumina and bauxite	12,039	(63)	11,976
Copper	3,219	(1)	3,218
Industrial minerals (comprising titanium dioxide slag, borates and salt)	2,806	(8)	2,798
Gold	470	6	476
Diamonds	444	—	444
Other products and freight services(b)	1,360	(3)	1,357
Consolidated sales revenue	53,721	320	54,041

	2022			2021
	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	33,068	(267)	32,801	42,992	(796)	42,196
Aluminium, alumina and bauxite	13,955	(165)	13,790	12,336	103	12,439
Copper	3,276	(80)	3,196	3,229	96	3,325
Industrial minerals (comprising titanium dioxide slag, borates and salt)	2,685	(16)	2,669	2,114	3	2,117
Gold	564	9	573	1,075	2	1,077
Diamonds	816	—	816	501	—	501
Other products and freight services(b)	1,710	(1)	1,709	1,837	3	1,840
Consolidated sales revenue	56,074	(520)	55,554	64,084	(589)	63,495

(a)Consolidated sales revenue includes both revenue from contracts with customers, accounted for under IFRS 15 “Revenue from Contracts with Customers”, and subsequent movements in

provisionally priced receivables, accounted for under IFRS 9, and included in “other revenue” above.

(b)“Other products and freight services” includes metallic co-products, molybdenum, silver and other commodities.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 183

7 Net operating costs (excluding items disclosed separately)

	Note	2023 US$m	2022 US$m	2021 US$m
Raw materials, consumables, repairs and maintenance		12,019	12,477	9,957
Amortisation of intangible assets	12	124	159	178
Depreciation of property, plant and equipment	13	5,210	4,851	4,519
Employment costs	26	6,636	6,002	5,513
Shipping and other freight costs		2,781	3,146	3,275
Decrease in finished goods and work in progress(a)		1,152	803	29
Royalties		3,135	2,994	3,878
Amounts charged by equity accounted units(b)		1,163	1,429	1,160
Net foreign exchange (gains)/losses		(47)	(42)	14
Gain on sale of the Cortez Royalty(c)		—	(432)	—
Gains recognised by Kitimat relating to LNG Canada’s project(d)		—	(116)	(336)
Provisions (including exchange differences on provisions)		1,491	1,006	1,906
Research and development		245	76	65
Other external costs(e)		5,295	4,161	4,071
Costs included above capitalised or shown on a separate line item(f)		(1,331)	(722)	(646)
Other operating income(g)		(821)	(1,022)	(893)
Net operating costs (excluding items disclosed separately)(h)		37,052	34,770	32,690

(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)On 2 August 2022, we completed the sale for US$525 million of a gold royalty which was retained following the disposal of the Cortez mine in 2008.

(d)During the first half of 2022, LNG Canada elected to terminate their option to purchase additional land and facilities for expansion of their operations at Kitimat, Canada. On 3 December 2021 we

recognised a new wharf at Kitimat, Canada within Property, plant and equipment that was built and paid for by LNG Canada.

(e)In 2023, other external costs include US$269 million (2022: US$465 million, 2021: US$502 million) of short-term lease costs and US$40 million (2022: US$50 million, 2021 US$34 million) of

variable lease costs recognised in the income statement in accordance with IFRS 16 “Leases”. Refer to note 21.

(f)In 2023, US$1,007 million (2022: US$485 million; 2021: US$445 million) of operating costs were capitalised, US$247 million (2022: US$190 million; 2021: US$154 million) of costs were shown

separately within “Exploration and evaluation costs” in the Group income statement, and US$77 million (2022: $47 million; 2021: US$47 million) of costs were shown within operating costs as

“Research and development”.

(g)Other operating income includes sundry revenue incidental to the main revenue-generating activities of the operations.

(h)Operating decarbonisation spend of US$234 million (2022: US$138 million) is allocated as US$182 million (2022: US$88 million)  within ”Net operating costs (excluding items disclosed

separately)”, with the remainder included in our share of profit or loss of equity accounted units.

8 Exploration and evaluation expenditure

Exploration and evaluation expenditure includes costs that are directly attributable to:

–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

greenfield projects, expensing typically continues to a later phase of study compared with brownfield expansions.

The charge for the year and the net amount of intangible assets capitalised during the year are as follows:

	2023 US$m	2022 US$m	2021 US$m
Expenditure in the year (inclusive of net cash proceeds of US$88 million (2022: US$1 million; 2021: US$7 million) on disposal of undeveloped projects)(a)	(1,684)	(1,097)	(852)
Non-cash movements and non-cash proceeds on disposal of undeveloped projects	(17)	(6)	23
Amount capitalised during the year	471	207	110
Exploration and evaluation expenditure (net of profit from disposal of interests in undeveloped projects) per income statement	(1,230)	(896)	(719)
Comprising:
Exploration and evaluation expenditures	(1,384)	(897)	(726)
Profit from disposal of interests in undeveloped projects(a)	154	1	7

(a)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. 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.

Financial statements continued

Notes to the 2023 financial statements

184 Annual Report on Form 20-F 2023 | riotinto.com

9 Finance income and finance costs

	Note	2023 US$m	2022 US$m	2021 US$m
Finance income from loans to equity accounted units		4	3	2
Other finance income (including bank deposits, net investment in leases, and other financial assets)		532	176	62
Total finance income		536	179	64
Interest on:
– Financial liabilities at amortised cost (excluding lease liabilities) and associated derivatives		(1,209)	(713)	(489)
– Lease liabilities		(50)	(49)	(47)
Fair value movements:
– Bonds designated as hedged items in fair value hedges(a)		(190)	526	246
– Derivatives designated as hedging instruments in fair value hedges(a)		203	(515)	(242)
Loss on early redemption of bonds		—	—	(69)
Amounts capitalised(b)	12, 13	279	416	358
Total finance costs		(967)	(335)	(243)

(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 12 and note 13) or at the rate of project-specific debt (where applicable).

10 Taxation

Recognition and measurement

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 using rates that have been enacted or substantively enacted at the balance sheet date. Where

the recognition of an asset and liability from a single transaction gives rise to equal and off-setting temporary differences, we had previously applied

the Initial Recognition Exemption allowed by IAS 12, and consequently recognised neither a deferred tax asset nor a deferred tax liability in respect

of these timing differences. Under the narrow-scope amendments to IAS 12, deferred tax assets and liabilities are required to be recognised in

respect of such temporary differences and prior year results have been restated accordingly (refer to section “New standards issued and effective in

the current year” on page 166 for details). Primarily, this applies to lease arrangements and changes in closure estimates which are capitalised.

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 covering the fiscal years 2013 to 2020, the most recent of which was

received in December 2023, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. We have not

booked any uncertain tax provisions for the matters under dispute, which have been referred to international arbitration. As required by

Mongolian law we have paid US$356 million in respect of the assessments, pending resolution of the disputes through the arbitration. These

amounts, adjusted for exchange rate movements, are included within our non-current receivables and other assets on the balance sheet. The

interpretation of the Investment Agreement and Mongolian legislation has been, and is expected to continue to be, subject to dispute. 

Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the recovery of the

amounts paid and of certain deferred tax assets, further details of which are provided in Note 15.

Taxation charge

	Note	2023 US$m	2022 US$m Restated(a)	2021 US$m Restated(a)
– Current		5,092	4,851	8,144
– Deferred	15	(1,260)	763	92
Total taxation charge		3,832	5,614	8,236

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 185

10 Taxation continued 

Prima facie tax reconciliation

	2023 US$m	2022 US$m Restated(a)	2021 US$m Restated(a)
Profit before taxation(b)	13,785	18,662	30,833
Prima facie tax payable at UK rate of 23.5% (2022: 19%; 2021: 19%)(c)	3,239	3,546	5,858
Higher rate of taxation of 30% on Australian earnings (2022: 30%; 2021: 30%)	835	1,550	2,598
Other tax rates applicable outside the UK and Australia	(2)	(17)	103
Tax effect of profit from equity accounted units, related impairments and expenses(b)	(159)	(109)	(198)
Impact of changes in tax rates	(173)	(11)	—
Resource depletion allowances	(11)	(40)	(52)
Recognition of previously unrecognised deferred tax assets(d)	(157)	(261)	(212)
Write-down of previously recognised deferred tax assets(e)	—	932	—
Utilisation of previously unrecognised deferred tax assets(f)	(10)	(37)	(200)
Unrecognised current year operating losses(g)	567	212	107
Deferred tax arising on internal sale of assets in Canadian operations(h)	(364)	—	—
Adjustments in respect of prior periods(i)	31	(222)	40
Other items	36	71	192
Total taxation charge	3,832	5,614	8,236

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)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.

(c)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 31% (2022: 29% 2021: 29%).

(d)The recognition of previously unrecognised deferred tax assets in 2023 and 2022 relates primarily to Oyu Tolgoi where reaching sustainable underground production has reduced the risk of tax

losses expiring if not recovered against taxable profits within eight years. In the comparative period to 31 December 2021 the recognition of previously unrecognised deferred tax assets also

included the recognition of prior year deferred tax assets in our Australian Aluminium business.

(e)The write-down of previously recognised deferred tax assets in the prior year relates to deferred tax assets of our US businesses. The enactment of the US Inflation Reduction Act of 2022 in

August included a new Corporate Alternative Minimum Tax (CAMT) regime which applies a minimum tax rate of 15% on accounting profits. As a result of the new legislation, which does not give

relief for some Federal deferred tax assets, the deferred tax assets previously recognised have been written down. This amount has been restated from US$820 million as previously reported to

US$932 million to reflect the adoption of narrow-scope amendments to IAS 12 referred to in footnote (a).

(f)In 2021, the utilisation of previously unrecognised deferred tax assets arose due to higher than forecast profits in the year at Oyu Tolgoi.

(g)Unrecognised current year operating losses include tax losses around the Group, including increases in closure estimates in 2023, for which no tax benefit is currently recognised due to

uncertainty regarding whether suitable taxable profits will be earned in future to obtain value for the tax losses.

(h)During the year 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 is recognised.

(i)In the year to 31 December 2022, adjustments in respect of prior periods includes amounts related to the settlement of all tax disputes with the Australian Tax Office for the years 2010 to 2021.

	2023 US$m	2022 US$m	2021 US$m
Tax on fair value movements:
– Cash flow hedge fair value gains	1	21	62
Tax credit/(charge) on re-measurement gains/(losses) on pension and post-retirement healthcare plans	152	(123)	(305)
Deferred tax relating to components of other comprehensive income for the year (note 15)	153	(102)	(243)

Future tax developments

We continue to monitor and evaluate the domestic implementation by relevant countries of the Organisation for Economic Co-operation and

Development’s (OECD) Pillar Two which seeks to apply a 15% global minimum tax. Pillar Two was substantively enacted by the United Kingdom on

20 June 2023, with application from 1 January 2024. As the Pillar Two legislation was not operative at the reporting date, the Group has no related

current tax exposure. 

We have adopted the guidance contained in International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12 released on 23 May 2023,

which provides a temporary mandatory exception from deferred tax accounting for Pillar Two. We estimate that the exposure to additional taxation in

2024 under Pillar Two is immaterial for the Group.

Financial statements continued

Notes to the 2023 financial statements

186 Annual Report on Form 20-F 2023 | riotinto.com

Our operating assets

We are a diversified mining operation with the majority of our assets being located in OECD countries.

Non-current assets other than excluded items(a)

The total of non-current assets other than excluded items is shown by location below.

	2023 US$m	2022 US$m Restated(b)
Australia	31,419	31,674
Canada	15,362	14,472
Mongolia	14,172	12,872
United States of America	7,171	6,441
Africa	3,412	2,945
South America	3,624	3,317
Europe (excluding UK)	165	245
UK	132	136
Other countries	1,254	1,159
Total non-current assets other than excluded items	76,711	73,261
Non-current assets excluded from analysis above:
Deferred tax assets	3,624	2,796
Other financial assets	481	406
Quasi-equity loans to equity accounted units(a)	14	—
Receivables and other assets	1,209	1,338
Total non-current assets per balance sheet	82,039	77,801

(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$4,393 million (2022:

US$3,298 million) which represents the Group’s share of net assets excluding quasi-equity loans shown separately above.

(b)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 187

11 Goodwill

Recognition and measurement

Goodwill is not amortised; it is tested annually at 30 September for impairment or more frequently if events or changes in circumstances indicate a

potential impairment. Refer to note 4 for further information.

	2023 US$m	2022 US$m
Net book value
At 1 January	826	879
Adjustment on currency translation	(29)	(53)
At 31 December	797	826
–  cost	16,237	15,974
–  accumulated impairment	(15,440)	(15,148)
At 1 January
–  cost	15,974	16,987
–  accumulated impairment	(15,148)	(16,108)

At 31 December, goodwill has been allocated as follows:

	2023 US$m	2022 US$m
Net book value
Richards Bay Minerals	370	405
Pilbara	342	337
Dampier Salt	85	84
	797	826

Impairment tests for goodwill

Richards Bay Minerals

Richards Bay Minerals’ annual impairment review resulted in no impairment charge for 2023 (2022: 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% (2022: 8.6%) has been applied to the post-tax cash flows expressed in real terms.

The key assumptions to which the calculation of FVLCD for Richards Bay Minerals is most sensitive and the corresponding change in FVLCD are

set out below:

	2023 US$m	2022 US$m
5% increase in the titanium slag price	217	207
1% increase in the discount rate applied to post-tax cash flows	(175)	(140)
10% strengthening of the South African rand	272	263

Future selling prices and operating costs have been estimated in line with the policy set out in note 4. The recoverable amount of the cash-

generating unit (CGU) exceeds the carrying value when each of these sensitivities is applied while keeping all other assumptions constant.

Financial statements continued

Notes to the 2023 financial statements

188 Annual Report on Form 20-F 2023 | riotinto.com

12 Intangible assets

Recognition and measurement

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 for impairment 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 water rights were acquired with Alcan in Canada.

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.

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 ore bodies, 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. Mineral 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 mineral 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 Certificate (RECs) acquired for our own use are accounted for as 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. These contribute to the

efficiency and cost effectiveness of our aluminium operations as they enable us to generate electricity from hydropower stations.

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.

The remaining carrying value of the water rights of US$1,776 million (included in contract-based assets) as at 31 December 2023 (2022:

US$1,693 million) relates wholly to the Quebec smelters CGU. The Quebec smelters CGU was tested for impairment by reference 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 6.6% (2022: 6.6%).

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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 189

12 Intangible assets continued

	2023
	Exploration and evaluation US$m	Trademarks, patented and non-patented technology US$m	Contract-based intangible assets US$m	Other intangible assets(a) US$m	Total US$m
Net book value
At 1 January 2023	1,368	12	1,875	390	3,645
Adjustment on currency translation	—	1	52	8	61
Additions(b)	471	—	—	121	592
Amortisation for the year	—	(4)	(7)	(113)	(124)
Impairment reversal(c)	231	—	—	—	231
Newly consolidated operations(d)	85	—	—	—	85
Disposals, transfers and other movements	(176)	—	33	42	(101)
At 31 December 2023	1,979	9	1,953	448	4,389
– cost (c)	1,989	222	2,996	1,926	7,133
– accumulated amortisation and impairment (c)	(10)	(213)	(1,043)	(1,478)	(2,744)

	2022
	Exploration and evaluation US$m	Trademarks, patented and non-patented technology US$m	Contract-based intangible assets US$m	Other intangible assets (a) US$m	Total US$m
Net book value
At 1 January 2022	363	22	2,008	439	2,832
Adjustment on currency translation	(22)	(2)	(114)	(24)	(162)
Additions	207	5	—	106	318
Amortisation for the year	—	(13)	(9)	(137)	(159)
Impairment reversal(c)	150	—	—	—	150
Subsidiaries no longer consolidated(c)	(150)	—	—	—	(150)
Newly consolidated operations(d)	822	—	—	—	822
Disposals, transfers and other movements	(2)	—	(10)	6	(6)
At 31 December 2022	1,368	12	1,875	390	3,645
– cost	3,030	211	2,908	1,732	7,881
– accumulated amortisation and impairment	(1,662)	(199)	(1,033)	(1,342)	(4,236)

(a)Carbon abatement spend of US$61 million in 2023 (2022: US$33 million) relates to procurement of carbon units and RECs included within “Other intangible assets” on initial recognition and

charged to the income statement when surrendered.

(b)In the current year, additions to exploration and evaluation assets includes US$4 million of interest capitalised. Our average borrowing rate, excluding any project finance, used for capitalisation

of interest is 7.50% (2022: 5.60%).

(c)The impairment reversal in the current year relates to the Simandou project, this also impacted cost and accumulated impairment due to derecognition of historical exploration and evaluation

costs. In 2022, the impairment reversal and disposal related to our sale of the Roughrider uranium project. Refer to note 4 for details.

(d)In the current year, the acquisition relates to our purchase of Meridian Minera Limitada’s 57.7% share in Agua de la Falda. In 2022, the acquisition related to our purchase of Rincon, a lithium

project in Argentina. Refer to note 5 for details.

Where amortisation is calculated on a straight line basis, the following useful lives have been determined:

	Trademarks, patented and non-patented technology		Contract-based intangible assets		Other intangible assets
Type of intangible	Trademarks	Patented and non-patented technology	Power contracts/water rights	Other purchase and customer contracts	Internally generated intangible assets and computer software	Other intangible assets
Amortisation profile	14 to 20 years	10 to 20 years	2 to 45 years	5 to 15 years	2 to 5 years	2 to 20 years

Financial statements continued

Notes to the 2023 financial statements

190 Annual Report on Form 20-F 2023 | riotinto.com

13 Property, plant and equipment

Recognition and measurement

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 work 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.

Depreciation of non-current assets

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 and therefore there is no

depreciation for capital work in progress.

Straight line basis

Assets within operations for which production is not expected to fluctuate significantly from one year to another or which have a physical life 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	5 to 50 years	See Power note below on page 195	3 to 50 years

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 mineral 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. Measured and indicated resources are

currently incorporated into depreciation calculations in the Group’s Australian iron ore business.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 191

13 Property, plant and equipment continued

Key judgement - estimation of asset lives

The useful lives of the major assets of a cash-generating unit 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 cash-generating unit 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 Mineral 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.

Deferred stripping

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). 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.

The following factors would point towards the initial stripping costs for the individual pits being accounted for separately:

–if mining of the second and subsequent pits is conducted consecutively following that of the first pit, rather than concurrently;

–if separate investment decisions are made to develop each pit, rather than a single investment decision being made at the outset;

–if the pits are operated as separate units in terms of mine planning and the sequencing of overburden removal and ore mining, rather than

as an integrated unit;

–if expenditures for additional infrastructure to support the second and subsequent pits are relatively large; and

–if the pits extract ore from separate and distinct orebodies, rather than from a single orebody.

If the designs of the second and subsequent pits are significantly influenced by opportunities to optimise output from several pits combined,

including the co-treatment or blending of the output from the pits, then this would point to treatment as an integrated operation for the

purposes of accounting for initial stripping costs. The relative importance of each of the above factors is considered in each case.

In order for production phase stripping costs to qualify for capitalisation as a stripping activity asset, three 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; and

–it must be possible to reliably measure the costs that relate to the stripping activity.

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).

Financial statements continued

Notes to the 2023 financial statements

192 Annual Report on Form 20-F 2023 | riotinto.com

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 two 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	The stripping cost is allocated to inventory based on a relevant production measure using a life-of-component strip ratio. The ratio divides the tonnage of waste mined for the component for the period either by the quantity of ore mined for the component or by the quantity of minerals contained in the ore mined for the component. In some operations, the quantity of ore is a more appropriate basis for allocating costs, particularly when there are significant by- products.
Component	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).
Life-of-component ratio	The life-of-component ratios are based on the mineral 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 mineral 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.

Property, plant and equipment - owned and leased assets

	2023 US$m	2022 US$m
Property, plant and equipment – owned	65,290	63,731
Right-of-use assets – leased	1,178	1,003
Net book value	66,468	64,734

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 193

13 Property, plant and equipment continued

Property, plant and equipment – owned

		2023
	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 2023		10,529	6,699	34,407	12,096	63,731
Adjustment on currency translation(b)		14	116	495	54	679
Adjustments to capitalised closure costs	14	(292)	—	—	—	(292)
Interest capitalised(c)	9	—	—	—	275	275
Additions(d)		222	207	1,381	5,110	6,920
Depreciation for the year(a)		(802)	(504)	(3,511)	—	(4,817)
Impairment charges(e)		(92)	(58)	(922)	(87)	(1,159)
Disposals		—	(28)	(73)	(27)	(128)
Transfers and other movements(f)		3,976	1,590	4,568	(10,053)	81
At 31 December 2023		13,555	8,022	36,345	7,368	65,290
Balance sheet analysis
– cost		29,731	14,737	80,993	7,728	133,189
– accumulated depreciation and impairment		(16,176)	(6,715)	(44,648)	(360)	(67,899)
Non-current assets pledged as security(g)		5,307	1,477	6,980	3,715	17,479

		2022
	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 2022		10,817	5,995	33,453	13,528	63,793
Adjustment on currency translation(b)		(436)	(344)	(1,870)	(311)	(2,961)
Adjustments to capitalised closure costs	14	520	—	—	—	520
Interest capitalised(c)	9	—	—	—	416	416
Additions(d)		360	304	1,111	4,732	6,507
Depreciation for the year(a)		(891)	(433)	(3,171)	—	(4,495)
Disposals		(3)	(1)	(38)	(4)	(46)
Newly consolidated operations(h)		—	1	—	5	6
Transfers and other movements(f)		162	1,177	4,922	(6,270)	(9)
At 31 December 2022		10,529	6,699	34,407	12,096	63,731
Balance sheet analysis
– cost		25,263	12,805	74,562	13,118	125,748
– accumulated depreciation and impairment		(14,734)	(6,106)	(40,155)	(1,022)	(62,017)
Non-current assets pledged as security(g)		1,602	491	5,113	8,876	16,082

(a)At 31 December 2023, the net book value of capitalised production phase stripping costs totalled US$2,505 million, with US$2,069 million within “Property, plant and equipment” and a further

US$436 million within “Investments in equity accounted units” (2022: total of US$2,497 million, with US$2,038 million in “Property, plant and equipment” and a further US$460 million within

“Investments in equity accounted units”). During the year, capitalisation of US$325 million was partly offset by depreciation of US$324 million, inclusive of amounts recorded within equity

accounted units (2022: US$411 million offset by depreciation of US$331 million). Depreciation of deferred stripping costs in respect of subsidiaries of US$216 million (2022: US$246 million;

2021: US$201 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 2023 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 7.50% (2022: 5.60%).

(d)Additions to “Property, plant and equipment” includes US$94 million of spend on carbon abatement (2022: US$86 million).

(e)In 2023, the impairment charges related primarily to our alumina refineries in the Aluminium segment. Refer to note 4 for details.

(f)“Transfers and other movements” includes reclassification between categories.

(g)Excludes assets held under capitalised lease arrangements. Non-current assets pledged as security represent amounts pledged as collateral against US$3,994 million (2022: US$3,965 million)

of loans, which are included in note 20.

(h)In 2022, the acquisition relates to our purchase of Rincon, a lithium project in Argentina. Refer to note 5 for details.

Financial statements continued

Notes to the 2023 financial statements

194 Annual Report on Form 20-F 2023 | riotinto.com

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 50% relative to our 2018 baseline by 2030 and achieving net zero emission across our operations by 2050. We expect to invest US$5 billion to US$6 billion on carbon abatement projects between 2022 and 2030 (revised from US$7.5 billion in prior year). Transitioning electricity from principally fossil fuel-based power generating assets to principally renewables is critical to achieving that goal. The carrying value of power generating assets is set out in the table below. The weighted average remaining useful economic life of plant and equipment for fossil fuel-based power generating assets is 10 years (2022: 13 years). Given the technical limitations of intermittent renewable energy generation and energy storage systems, and our need for reliable baseload electricity, we expect our current generation assets will be integral to those needs for the foreseeable future. We are investing in research and development and evaluating new market options that may overcome these technical challenges. Should pathways for eliminating fossil fuel power generating assets be identified we may need to accelerate depreciation or impair the assets; however, at this present moment the requirement for fossil fuel powered back-up means that early retirement of the assets is not expected and no change to depreciation rates is required.
	2023		2022
Net book value	Land and buildings US$m	Plant and equipment US$m	Land and buildings US$m	Plant and equipment US$m
Fossil fuels	87	932	25	882
Renewables(a)	201	2,456	198	2,352
(a)The increase of US$104 million in renewables plant & equipment is primarily attributable to the Quebec power stations which are essential to the production of hydroelectricity for the manufacture of low-carbon aluminium in our newly expanded facility at Complexe Jonquière in Saguenay-Lac-Saint-Jean, as well as the Kemano hydropower station which continues to ensure the long-term, sustainable production of low-carbon aluminium at our smelter in Kitimat. Both assets are items of property, plant and equipment which are owned by Rio Tinto.

Right-of-use assets – leased

	2023			2022
	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	515	488	1,003	549	585	1,134
Adjustment on currency translation	11	4	15	(35)	(16)	(51)
Additions	96	420	516	49	254	303
Depreciation for the year	(88)	(305)	(393)	(61)	(295)	(356)
Impairment charges(a)	(1)	(7)	(8)	—	—	—
Disposals	—	(1)	(1)	—	—	—
Transfers and other movements	10	36	46	13	(40)	(27)
At 31 December	543	635	1,178	515	488	1,003

(a)In 2023, the impairment charges related to our alumina refineries in the Aluminium segment. 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 depreciated

on a straight line basis over the life of the lease, taking into account any extensions that are likely to be exercised.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 195

14 Close-down and restoration provisions

Recognition and measurement

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 occur 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.

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 2.0% (2022: 1.5%) which is

applied to all locations since we expect to meet closure cash flows

principally from US dollar revenues and financing, with activities co-

ordinated 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 six 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 known, but can continue for many years depending on the

nature of the disturbance and the remediation techniques used.

Financial statements continued

Notes to the 2023 financial statements

196 Annual Report on Form 20-F 2023 | riotinto.com

	Note	2023 US$m	2022 US$m
At 1 January		15,759	14,542
Adjustment on currency translation		241	(699)
Adjustments to mining properties/right-of-use assets:	13
– increases to existing and new provisions		629	520
– change in discount rate		(921)	—
Charged/(credited) to profit:
– increases to existing and new provisions(a)		1,654	541
– change in discount rate		(168)	—
– unused amounts reversed		(195)	(72)
– exchange (gains)/losses on provisions		(16)	17
– amortisation of discount		955	1,517
Utilised in year		(777)	(609)
Transfers and other movements		(11)	2
At 31 December(b)		17,150	15,759
Balance sheet analysis:
Current		1,523	1,142
Non-current		15,627	14,617
Total		17,150	15,759

(a)Includes US$1,272 million arising from study updates in the second half of 2023 (2022: US$180 million) which have been excluded from underlying EBITDA. Refer to note 1 for details.

(b)Close-down, restoration and environmental liabilities at 31 December 2023 have not been adjusted for closure-related receivables amounting to US$366 million (2022: US$351 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.

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 five years. Within ten 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 2023, a reforecast for the Ranger Uranium mine operated by Energy Resources of Australia has resulted in an increase to the closure

provision of US$850 million. The increase is principally attributed to closure activities taking longer due to a reassessment of the time taken to

achieve Pit 3 consolidation coupled with transition to a lower risk approach which adversely impacts achievement of final landform and the

quantity of water to be processed. When operations ceased at the end of 2020, rehabilitation was expected to be complete by 2026; we now

expect the final completion will be delayed until 2034, subject to permitting. The majority of the provision increase is attributable to

rehabilitation activities post 2027 and is subject to further study which could result in material change to the provision. These activities remain

subject to a number of studies and are also potentially sensitive to external events such as rainfall. A previous study was completed in early

2022 and the preliminary information from that study resulted in an increase to closure liabilities of US$510 million in 2021.

In some cases, the closure study may indicate that monitoring and, potentially, remediation will be required indefinitely - for example, ground

water 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 30 years. Where an alternative commercial arrangement to meet our obligations can be predicted with

confidence, this period may be shorter.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 197

14 Close-down and restoration provisions continued

Analysis of close-down and restoration/environmental clean-up provisions

	2023 US$m	2022 US$m
Undiscounted close-down and environmental restoration obligations	23,372	20,433
Impact of discounting	(6,222)	(4,674)
Present value of close-down and restoration obligations	17,150	15,759
Attributable to:
Operating sites	12,021	11,598
Non-operating sites	5,129	4,161
Total close-down and restoration provisions	17,150	15,759

Closure cost composition as at 31 December	2023 US$m	2022 US$m
Decommissioning, decontamination and demolition	3,591	3,386
Closure and rehabilitation earthworks(a)	4,609	4,760
Long-term water management costs(b)	1,236	1,092
Post closure monitoring and maintenance	1,806	1,846
Indirect costs, owners' costs and contingency(c)	5,908	4,675
Total	17,150	15,759

(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	2023 US$m	2022 US$m
Australia	9,187	7,983
USA	4,682	4,680
Canada	1,722	1,730
Other countries	1,559	1,366
Total	17,150	15,759

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.

Projected cash flows (undiscounted) for close-down and restoration/environmental clean-up 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 2023	1,523	2,365	2,005	17,479	23,372
At 31 December 2022	1,142	1,986	1,426	15,879	20,433

Remaining lives of operations and infrastructure range from one to over 50 years with an average for all sites, weighted by present closure

obligation, of around 14 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.

Financial statements continued

Notes to the 2023 financial statements

198 Annual Report on Form 20-F 2023 | riotinto.com

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 on the previous page. 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 ground water treatment, of approximately US$0.7

billion.

–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$0.7 billion.

–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, which at 31 December 2023 was US$17.2 billion, 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; and

–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 Mineral

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 using a discount rate specific to the class of obligations.

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 ten 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 five years; these are evolving to incorporate greater consideration of forecast climate conditions at closure.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 199

14 Close-down and restoration provisions continued

Sensitivity analysis

Provisions of US$17,150 million (2022: US$15,759 million) for close-down and restoration costs and environmental clean-up obligations are based

on risk-adjusted cash flows expressed in real terms. The present volatility in interest rates has resulted in expectations of higher yields from long-

dated bonds, including the 30-year US Treasury Inflation Protected Securities, which is a key input to our closure provision discount rate. On

30 June 2023, we revised the closure discount rate to 2.0% (from 1.5%), applied prospectively from that date. This assumption is based on the

currency in which we plan to fund the closures and our expectation of long-term interest rate and exchange rate parity in the locations of our

operations.

The impact of discounting on the provision - and the corresponding amount capitalised within “Property, plant and equipment” (for operating sites) or

charged/(credited) to the income statement (for non-operating and fully impaired sites) - is illustrated below:

	At 31 December 2023			At 31 December 2022
	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 1.0%	2,300	300	2,600	1,400	100	1,500
Discount rate increased to 3.0%	(1,800)	(300)	(2,100)	(2,700)	(300)	(3,000)

15 Deferred taxation

Recognition and measurement

The Group’s accounting policy in relation to deferred taxation is outlined within note 10.

The movement in deferred tax (liabilities)/assets in the year ended 31 December is as follows:

	2023 US$m	2022 US$m Restated(a)
At 1 January	(368)	395
Adjustment on currency translation	19	96
Credited/(charged) to the income statement	1,260	(763)
Credited/(charged) to statement of comprehensive income(b)	153	(102)
Other movements(c)	(24)	6
At 31 December	1,040	(368)
Comprising:
– deferred tax assets(d)(e)	3,624	2,796
– deferred tax liabilities(f)	(2,584)	(3,164)

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)The amounts credited/(charged) directly to the statement of comprehensive income include provisions for tax on cash flow hedges and on re-measurement gains/(losses) on pension schemes

and on post-retirement healthcare plans.

(c)“Other movements” include deferred tax relating to tax payable recognised by subsidiary holding companies on the profits of the equity accounted units to which it relates.

(d)Recognised deferred tax assets of US$1,182 million (2022: US$868 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$nil (2022: US$nil) would expire within one year if not used, US$140 million (2022: US$105 million) would expire within one to five years, and

US$1,042 million (2022: US$763 million) would expire in more than five years.

(e)Recognised and unrecognised deferred tax assets are shown in the table on page 202 and totalled US$10,040 million at 31 December 2023 (2022: US$8,089 million). Of this total, US$3,624

million has been recognised as deferred tax assets (2022: US$2,796 million), leaving US$6,416 million (2022: US$5,293 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$2,249 million (2022: US$2,730 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$110 million (2022: US$140 million) would be

payable.

Financial statements continued

Notes to the 2023 financial statements

200 Annual Report on Form 20-F 2023 | riotinto.com

Analysis of deferred tax

Deferred tax balances for which there is a right of offset within the same tax jurisdiction are presented net on the face of the balance sheet as

required by IAS 12. The closing deferred tax assets and liabilities, prior to this offsetting of balances, are shown below.

	2023 US$m	2022 US$m Restated(a)
Deferred tax assets arising from:
Tax losses(b)	1,474	922
Provisions and other liabilities	3,835	3,637
Capital allowances	961	927
Post-retirement benefits	210	179
Unrealised exchange losses	194	189
Other temporary differences(c)	1,433	1,265
Total	8,107	7,119
Deferred tax liabilities arising from:
Capital allowances	(5,407)	(5,935)
Unremitted earnings(d)	(394)	(372)
Capitalised interest	(304)	(330)
Post-retirement benefits	(72)	(149)
Unrealised exchange gains	(15)	(11)
Other temporary differences	(875)	(690)
Total	(7,067)	(7,487)
Credited/(charged) to the income statement
Unrealised exchange losses	(2)	2
Tax losses	531	(525)
Provisions and other liabilities	133	3
Capital allowances	628	48
Tax on unremitted earnings	5	3
Post-retirement benefits	(48)	(59)
Other temporary differences	13	(235)
Total	1,260	(763)

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Recognised deferred tax assets of US$1,182 million (2022: US$868 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$nil (2022: US$nil) would expire within one year if not used, US$140 million (2022: US$105 million) would expire within one to five years, and

US$1,042 million (2022: US$763 million) would expire in more than five years.

(c)Other temporary differences include research and development, investment and other tax credits and allowances of US$583 million (2022: US$491 million).

(d)Deferred tax liabilities are not recognised on the unremitted earnings of subsidiaries and joint ventures totalling US$2,249 million (2022: US$2,730 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$110 million (2022: US$140 million) would be

payable.

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 covering the fiscal years 2013 to 2020, the most recent of which was

received in December 2023, which are inconsistent with the Oyu Tolgoi Investment Agreement and Mongolian legislation. The interpretation of

the Investment Agreement and Mongolian legislation has been, and is expected to continue to be, subject to dispute through international

arbitration. Differences in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount

and recovery of recognised deferred tax items, including tax losses. The arbitration process on matters of this complexity can typically take

over 12 months to conclude.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 201

15 Deferred taxation continued

Analysis of deferred tax assets

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	2023 US$m	2022 US$m Restated (a)	2023 US$m	2022 US$m Restated (a)
France	—	—	1,320	1,204
Canada	383	482	501	580
US(b)	204	137	977	960
Australia	991	700	842	585
Mongolia(c)	1,530	1,218	235	257
Other countries	516	259	2,541	1,707
Total(d)(e)	3,624	2,796	6,416	5,293

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(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 rules

has resulted in a position where no material future tax benefit will be derived from the utilisation of Federal deferred tax assets and consequently these deferred tax assets are included as

'unrecognised' in this table.

(c)Deferred tax assets in Mongolia include US$310 million (2022: US$73 million) from tax losses that expire if not recovered against taxable profits within eight years. In addition, amounts have

been recognised as deferred tax assets relating to anticipated future deductions. Tax losses and other 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 has been, and is expected to continue to be, subject to dispute. Differences

in interpretation of the Investment Agreement and Mongolian legislation could have a material impact on the amount and period of recovery of deferred tax assets.

(d)US$2,455 million (2022: US$1,490 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$543 million of the unrecognised assets (2022: US$473 million).

(e)In addition to the unrecognised deferred tax assets in this table, the Group has accumulated UK foreign tax credits of US$1.3 billion (2022: US$1.3 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

Recognition and measurement

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, and are periodically reassessed, taking

into account technical analysis and historical performance.

	2023 US$m	2022 US$m
Raw materials and purchased components	1,050	1,235
Consumable stores	1,520	1,327
Work in progress	2,467	2,086
Finished goods and goods for resale	1,836	1,768
Total inventories	6,873	6,416
Comprising:
Expected to be used within one year	6,659	6,213
Expected to be used after more than one year	214	203
Total inventories	6,873	6,416

During 2023, the Group recognised a net inventory write-off of US$60 million (2022: US$55 million write-off). This included inventory write-offs of

US$94 million (2022: US$75 million) offset by a write-back of previously written down inventory due to an increase in realisable values amounting to

US$34 million (2022: US$20 million).

At 31 December 2023, US$925 million (2022: US$850 million) of inventories were pledged as security for liabilities.

Financial statements continued

Notes to the 2023 financial statements

202 Annual Report on Form 20-F 2023 | riotinto.com

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.

US$475 million of receivables (2022: US$457 million) subject to factoring program and US$372 million (2022: US$430 million) of receivables subject

to a letter of credit discounting program have been transferred to the participating banks and derecognised at the reporting date.

	2023			2022
	Non-current US$m	Current US$m	Total US$m	Non-current US$m	Current US$m	Total US$m
Trade receivables(a)	—	2,461	2,461	—	2,179	2,179
Other financial receivables(a)	234	548	782	124	462	586
Other receivables(b)	470	347	817	383	382	765
Prepayment of tolling charges to jointly controlled entities(c)	113	—	113	218	—	218
Pension surpluses (note 28)	466	—	466	824	—	824
Other prepayments	376	589	965	344	455	799
Total(d)	1,659	3,945	5,604	1,893	3,478	5,371

(a)At 31 December 2023, trade and other financial receivables are stated net of allowances for expected credit losses of US$82 million (2022: US$59 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 2023, other receivables include US$349 million (2022: US$329 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 amounts

classified as non-current trade and other receivables approximates to their carrying value.

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.

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.

The Group participates in supply chain finance arrangements whereby vendors 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. Use of the early settlement facility is voluntary and at the vendors' discretion on an invoice-by-

invoice basis. Financial liabilities subject to supply chain finance therefore continue to be classified as trade payables with the cash outflows

showing in operating cash flows. At 31 December 2023, trade payables included US$821 million (2022: US$819 million) subject to early settlement

election by vendors.

	2023			2022
	Non-current US$m	Current US$m	Total US$m	Non-current US$m	Current US$m	Total US$m
Trade payables	—	3,265	3,265	3	3,269	3,272
Other financial payables	238	913	1,151	225	1,083	1,308
Other payables	56	208	264	63	131	194
Deferred income(a)	103	280	383	114	333	447
Accruals	—	1,702	1,702	—	1,611	1,611
Employee entitlements	—	992	992	—	878	878
Royalties and mining taxes	3	868	871	3	644	647
Amounts owed to equity accounted units	196	10	206	196	98	294
Total	596	8,238	8,834	604	8,047	8,651

(a)Deferred income includes contract liabilities of US$275 million (2022: US$345 million).

The fair value of trade payables and financial instruments within other financial payables approximates their carrying value.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 203

Our capital and liquidity

Our overriding objective when managing capital and liquidity is to safeguard the business as a going concern. Capital is allocated in a consistent

and disciplined manner. Essential capital 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 commodity 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.

Our total capital as at 31 December is shown in the table below.

	Note	2023 US$m	2022 US$m
Equity attributable to owners of Rio Tinto (see Group balance sheet)		54,586	50,175
Equity attributable to non-controlling interests (see Group balance sheet)		1,755	2,099
Net debt	19	4,231	4,188
Total capital		60,572	56,462

We have access to various forms of financing including our US Shelf Programme, European Debt Issuance Programme, Commercial Paper and

credit facilities.

In 2023, we exercised our option to extend the maturity of our US$7.5 billion multi-currency revolving credit facility by one year. The facility now

matures in November 2028. The facility remained undrawn throughout the year. At 31 December 2023, the Group’s subsidiaries had available in

aggregate US$558 million (2022: US$558 million) of committed borrowing facilities; these amounts are available for use by the respective holders of

each facility only and are not available for use across the Group. 

Our credit ratings as at 31 December, as provided by Standard & Poor’s and Moody’s Investor Services, were:

	2023	2022
Long-term rating	A/A1	A/A2
Short-term rating	A-1/P-1	A-1/P-1
Outlook	Stable/Stable	Stable/Stable

Our unified credit status is maintained through cross guarantees, which mean the contractual obligations of Rio Tinto plc and Rio Tinto Limited are

automatically guaranteed by the other.

Financial liability analysis

In the table below, we summarise the maturity profile of our financial liabilities on our balance sheet based on contractual undiscounted 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.

	2023					2022
(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)	(5,769)	(57)	(68)	(308)	(6,202)	(5,971)	(37)	(57)	(329)	(6,394)
Expected lease liability payments	(385)	(285)	(442)	(574)	(1,686)	(329)	(235)	(344)	(606)	(1,514)
Borrowings before swaps	(845)	(17)	(2,385)	(10,011)	(13,258)	(937)	(1,425)	(1,839)	(7,389)	(11,590)
Expected future interest payments(a)	(803)	(781)	(2,156)	(4,886)	(8,626)	(668)	(603)	(1,468)	(3,141)	(5,880)
Other financial liabilities	(4)	—	—	—	(4)	—	—	—	—	—
Derivative financial liabilities(b)
Derivatives related to net debt – net settled	(161)	(87)	(163)	—	(411)	(92)	(106)	(47)	(8)	(253)
Derivatives related to net debt – gross settled(a)
– gross inflows	502	26	77	664	1,269	37	481	72	651	1,241
– gross outflows	(620)	(34)	(102)	(841)	(1,597)	(69)	(615)	(102)	(875)	(1,661)
Derivatives not related to net debt – net settled	(76)	(54)	(124)	(54)	(308)	(78)	(60)	(129)	(77)	(344)
Derivatives not related to net debt – gross settled
– gross inflows	499	—	—	—	499	71	—	—	—	71
– gross outflows	(501)	—	—	—	(501)	(71)	—	—	—	(71)
Total	(8,163)	(1,289)	(5,363)	(16,010)	(30,825)	(8,107)	(2,600)	(3,914)	(11,774)	(26,395)

(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 12 years (2022: 11 years).

Financial statements continued

Notes to the 2023 financial statements

204 Annual Report on Form 20-F 2023 | riotinto.com

19 Net debt

Analysis of changes in net debt

	2023
	Financial liabilities			Other assets
	Borrowings excluding overdrafts (note 20)(a) US$m	Lease liabilities (note 21)(b) US$m	Derivatives related to net debt  (note 23)(c) US$m	Cash and cash equivalents including overdrafts (note 22)(a) US$m	Other investments (note 23)(d) US$m	Net debt US$m
At 1 January	(11,070)	(1,200)	(690)	6,774	1,998	(4,188)
Foreign exchange adjustment	(87)	(21)	62	(23)	—	(69)
Cash movements excluding exchange movements	(1,523)	426	(4)	2,921	(1,157)	663
Other non-cash movements	(320)	(556)	203	—	36	(637)
At 31 December	(13,000)	(1,351)	(429)	9,672	877	(4,231)

	2022
	Financial liabilities			Other assets
	Borrowings excluding overdrafts (note 20)(a) US$m	Lease liabilities (note 21)(b) US$m	Derivatives related to net debt  (note 23)(c) US$m	Cash and cash equivalents including overdrafts (note 22)(a) US$m	Other investments (note 23)(d) US$m	Net cash/(debt) US$m
At 1 January	(12,166)	(1,363)	(101)	12,805	2,401	1,576
Foreign exchange adjustment	118	69	(92)	15	—	110
Cash movements excluding exchange movements	470	374	(3)	(6,046)	(352)	(5,557)
Other non-cash movements	508	(280)	(494)	—	(51)	(317)
At 31 December	(11,070)	(1,200)	(690)	6,774	1,998	(4,188)

(a)Borrowings excluding overdrafts of US$13,000 million (2022:US$11,070 million) differs from Borrowings on the balance sheet as it excludes bank overdrafts of US$1 million (2022: US$1 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$877 million (2022: US$1,998 million) of highly liquid financial assets held in a separately managed portfolio of fixed income instruments classified as held for

trading.

The table below summarises, by currency, our net debt, after taking into account relevant cross currency interest rate swaps and foreign

exchange contracts:

	2023						2022
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	(12,629)	(511)	(429)	8,659	877	(4,033)	(3,929)
Australian dollar	(200)	(433)	—	447	—	(186)	(455)
Canadian dollar	(168)	(175)	—	96	—	(247)	(158)
South African rand	—	(2)	—	132	—	130	171
Other	(3)	(230)	—	338	—	105	183
Total	(13,000)	(1,351)	(429)	9,672	877	(4,231)	(4,188)

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 205

20 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 notional with a USD interest coupon.

Borrowings at 31 December

The characteristics and carrying value of the Group’s borrowings are summarised below.

	Carrying value 2023 US$m	Carrying value 2022 US$m	Nominal value of hedged item 2023 US$m	Nominal value of hedged item 2022 US$m	Weighted average interest rate after swaps (where applicable)(b)	Swap maturity (where applicable)
Rio Tinto Finance plc Euro Bonds 2.875% due 2024(a)(b)(c)	452	429	463	546	3 month SOFR +1.90%	2024
Rio Tinto Finance (USA) Limited Bonds 7.125% due 2028(a)(b)	804	807	750	750	3 month SOFR +3.54%	2028
Alcan Inc. Debentures 7.25% due 2028(a)	99	97	100	100	3 month SOFR +5.69%	2024
Rio Tinto Finance plc Sterling Bonds 4.0% due 2029(a)(b)(c)(d)	611	553	639	807	3 month SOFR +2.91%	2024
Alcan Inc. Debentures 7.25% due 2031(a)(b)	392	384	400	400	3 month SOFR +5.98%	2025
Rio Tinto Finance (USA) plc Bonds 5.0% due 2033(e)	646	—	—	—
Alcan Inc. Global Notes 6.125% due 2033(a)(b)	699	673	750	750	3 month SOFR +5.93%	2025
Alcan Inc. Global Notes 5.75% due 2035(a)(b)	274	264	300	300	3 month SOFR +5.44%	2025
Rio Tinto Finance (USA) Limited Bonds 5.2% due 2040(a)(b)(f)	1,158	1,144	200	—	6 month SOFR +1.05%	2033
Rio Tinto Finance (USA) plc Bonds 4.75% due 2042(a)(g)	492	488	—	500
Rio Tinto Finance (USA) plc Bonds 4.125% due 2042(a)(h)	731	727	—	750
Rio Tinto Finance (USA) Limited Bonds 2.75% due 2051(a)(b)	1,098	1,065	1,250	1,250	6 month SOFR +1.57%	2028
Rio Tinto Finance (USA) plc Bonds 5.125% due 2053(a)(e)(i)	1,151	—	1,100	—	6 month SOFR +0.76%	2033
Oyu Tolgoi LLC MIGA Insured Loan SOFR plus 2.65% due 2032(j)	602	597	—	—
Oyu Tolgoi LLC Commercial Banks “B Loan” SOFR plus 3.4% due 2032(j)	1,392	1,387	—	—
Oyu Tolgoi LLC Export Credit Agencies Loan 4.72% due 2033(j)	248	237	—	—
Oyu Tolgoi LLC Export Credit Agencies Loan SOFR plus 3.65% due 2034(j)	816	805	—	—
Oyu Tolgoi LLC International Financial Institutions “A Loan” SOFR plus 3.78% due 2035(j)	792	744	—	—
Other secured loans	144	194
Other unsecured loans	399	475
Bank overdrafts	1	1
Total borrowings(k)	13,001	11,071
Current borrowings	824	923
Non-current borrowings	12,177	10,148
Total borrowings(k)	13,001	11,071

(a)The fair value movements of our borrowings and interest rate swaps that are in fair value hedge relationships are summarised in note 9.

(b)The LIBOR reference rates derivatives were transitioned to Secured Overnight Financing Rate (SOFR) with effect from 1 July 2023 in accordance with International Swaps and Derivatives

Association (ISDA) Fallback Protocol. Weighted average interest rate after swaps for 2022 can be found in note 20 to the Financial Statements in our 2022 Annual Report.

(c)Rio Tinto has a US$10.0 billion (2022: US$10.0 billion) European Debt Issuance Program against which the cumulative amount utilised was US$1.1 billion equivalent at 31 December 2023

(2022: US$1.0 billion). The carrying value of these bonds after hedge accounting adjustments amounted to US$1.1 billion (2022: US$1.0 billion) in aggregate.

(d)We applied cash flow hedge accounting to this bond and the corresponding cross currency interest rate swap. The hedge is fully effective as the notional amount, maturity, payment and reset

dates match. Since 2019, we swapped the resulting fixed US dollar annual interest coupon payments to floating rates. Fair value hedge accounting has been applied to this relationship in

addition to the pre-existing cash flow hedge.

(e)On 7 March 2023, we issued US$650 million ten-year fixed rate and US$1.1 billion of 30-year fixed rate SEC-registered bonds.

(f)In November 2023, we entered into two new interest rate swaps with a notional of US$200 million, to convert our fixed coupon interest payments on this bond to 6 month SOFR +1.05%.

(g)In March 2023, our interest rate swap, which converted our fixed coupon interest payments on this bond to 3 month LIBOR +3.42%, matured.

(h)In February 2023, our interest rate swap which converted our fixed coupon interest payments on this bond to 3 month LIBOR +2.83% matured.

(i)In October 2023, we entered into a new interest rate swap to convert our fixed coupon interest payments on this bond to 6 month SOFR +0.76%.

(j)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 1.2% post-completion, which is expected to happen in 2029 subject to meeting certain conditions. Refer below on the refinancing of the facility made during the year.

(k)The Group’s borrowings of US$13.0 billion (2022: US$11.1 billion) include US$4.0 billion (2022: US$4.0 billion) of subsidiary entity borrowings that are subject to various financial and general

covenants with which the respective borrowers were in compliance as at 31 December 2023.

Financial statements continued

Notes to the 2023 financial statements

206 Annual Report on Form 20-F 2023 | riotinto.com

We refinanced the Oyu Tolgoi project finance on 16 February 2023 with a syndicate of international financial institutions, export credit agencies and

commercial lenders. The lenders have agreed to a deferral of the principal repayments by three years to June 2026 and to an extension of the final

maturity date by five years from 2030 to 2035. As part of refinancing, the debt transitioned to the SOFR benchmark to which we applied the Phase 2

IBOR reform relief under IFRS 9. The refinancing did not result in a derecognition of the drawn down amount; however we recognised an accounting

loss on modification of US$123 million related to changes other than the benchmark transition and capitalised transaction costs incurred of US$50

million.

Update on interest rate benchmark reform

We adopted, in prior periods, Interest Rate Benchmark Reform Amendments to IFRS 9 “Financial Instruments”, IFRS 7 “Financial Instruments:

Disclosures”, IFRS 4 “Insurance Contracts” and IFRS 16 “Leases”. The amendments address the financial reporting impact from reform of the

LIBOR and other benchmark interest rates (collectively “IBOR reform”). We have taken relevant practical reliefs from certain requirements relating to

changes in the basis for determining contractual cash flows of financial assets, financial liabilities and hedge accounting, described below. On 1 July

2023 we completed the transition of our US LIBOR derivatives to SOFR on cessation of US LIBOR at 30 June 2023. There has been no impact on

our hedging arrangements because of the LIBOR reform reliefs we have taken as permitted under IFRS 9.

21 Leases

Recognition and measurement

IFRS 16 applies to the recognition, measurement, presentation and disclosure of leases. Certain leases are exempt from the standard, including

leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. We apply the scope exemptions in paragraphs 3(e)

and 4 of IFRS 16 and do not apply IFRS 16 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 projection of 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 - lease assessment

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 year end for a fixed component of the QMM

renewable PPA. Amrun PPA is a lease, which has not yet commenced and is included in capital commitments (note 37).

Lessee arrangements

We have made the following payments during the year associated with leases:

Description of payment	Included within	2023 US$m	2022 US$m
Principal lease payments	Cash flows from financing activities	426	374
Interest payments on leases	Cash flows from operating activities	50	47
Payments for short-term leases	Net operating costs	269	465
Payments for variable lease components	Net operating costs	40	50
Payments for low value leases (>12 months in duration)	Net operating costs	3	1
Total lease payments		788	937

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 207

21 Leases continued

Lease liabilities

The maturity profile of lease liabilities recognised at 31 December is:

	2023 US$m	2022 US$m
Lease liabilities
Due within 1 year	385	329
Between 1 and 3 years	457	388
Between 3 and 5 years	270	191
More than 5 years	574	606
Total undiscounted cash payments expected to be made	1,686	1,514
Effect of discounting	(335)	(314)
Present value of minimum lease payments	1,351	1,200
Comprising:
Current lease liability per the balance sheet	345	292
Non-current lease liability per the balance sheet	1,006	908
Total lease liability	1,351	1,200

At 31 December 2023, commitments for leases not yet commenced were US$308 million (2022: US$481 million); commitments relating to short-

term leases which had already commenced at 31 December 2023 were US$164 million (2022: US$132 million). These commitments are not

included in the lease maturity profile table above.

22 Cash and cash equivalents

Recognition and measurement

For the purpose of the balance sheet, cash and cash equivalents covers cash on hand, deposits held with banks, 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 balance sheet. For the purposes of the

cash flow statement, cash and cash equivalents are shown net of overdrafts.

	Note	2023 US$m	2022 US$m
Cash at bank and in hand		1,843	1,889
Money market funds, reverse repurchase agreements and other cash equivalents		7,830	4,886
Total cash and cash equivalents per Group balance sheet		9,673	6,775
Bank overdrafts repayable on demand (unsecured)	20	(1)	(1)
Total cash and cash equivalents per Group cash flow statement		9,672	6,774

Restricted cash and cash equivalent analysis

Cash and cash equivalents of US$422 million (2022: US$391 million) are held in countries where there are restrictions on remittances. Of this

balance, US$156 million (2022: US$268 million) could be used to repay subsidiaries’ third-party borrowings.

There are also restrictions on a further US$553 million (2022: US$576 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$129 million (2022: US$336 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 2023, we held US$2,775 million (2022: US$850 million) of reverse repurchase agreements, measured at amortised cost and

reported within cash and cash equivalents as they are highly liquid products maturing within three months. We accepted collateral of investment

grade quality in respect of these reverse repurchase agreements, with a fair value of US$2,924 million as at 31 December 2023 (2022:

US$892 million). Collateral is not recognised on our balance sheet and if the counterparty were to default we would be able to sell it.

Financial statements continued

Notes to the 2023 financial statements

208 Annual Report on Form 20-F 2023 | riotinto.com

23 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 24. 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.

Other financial assets

	2023			2022
	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	14	40	54	39	28	67
Derivatives related to net debt	87	—	87	2	—	2
Equity shares and quoted funds	163	18	181	154	68	222
Other investments, including loans(a)	217	1,060	1,277	211	2,064	2,275
Total other financial assets	481	1,118	1,599	406	2,160	2,566

(a)Current “Other investments, including loans” includes US$877 million (2022: US$1,998 million) of highly liquid financial assets held in a separately managed portfolio of fixed income instruments

classified as held for trading and included within our net debt definition.

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 bi-annually) 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.

Other financial liabilities

	2023			2022
	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	198	68	266	220	61	281
Derivatives related to net debt	315	201	516	684	8	692
Other financial liabilities	—	4	4	—	—	—
Total other financial liabilities	513	273	786	904	69	973

Offsetting and enforceable master netting agreements

When we have a legally enforceable right to offset 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 amounts to be set-off in certain circumstances. During the year, there were no material amounts offset in the balance sheet.

24 Financial instruments and risk management

Recognition and measurement

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 statements

Annual Report on Form 20-F 2023 | riotinto.com 209

24 Financial instruments and risk management continued

Financial risk management objectives

Our financial risk management objectives are:

–to have in place a robust capital structure to manage the organisation through the commodity 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 204.

(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 re-purchase agreements, money market funds, and balances

with banks and financial institutions. Refer to note 17, note 22 and note 23 for an understanding of the size of, and the credit risk related to, each

balance.

(iii) Interest rate risk

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, 68%

(2022: 77%) of our borrowings (including leases) were at floating rates. To understand how we manage interest rate risk, refer to note 20.

Sensitivity to interest rate changes

Based on our floating rate financial instruments outstanding at 31 December 2023, 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$5 million (2022:

US$26 million). This reflects the net debt position in 2023 and 2022.

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) loan. As we receive fixed GBP interest and pay fixed

United States dollar (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$33 million (2022: US$35 million) for GBP and a credit of US$42 million (2022: US$48

million) for USD. A 100 basis point decrease would have broadly the same impact in the opposite direction.

(iv) Commodity price risk

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 2023, we had 92 million pounds of copper sales (31 December 2022: 83 million pounds), that were provisionally priced at US 387

cents per pound (2022: US 380 cents per pound). The final price of these sales will be determined during the first half of 2024. A 10% change in the

price of copper realised on the provisionally priced sales, with all other factors held constant, would increase or reduce net earnings by US$22

million (2022: US$19 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 electricity 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).

In accordance with IFRS 9, we apply hedge accounting to two embedded derivatives within our power contracts. The embedded derivatives

(notional aluminium forward sales) have been designated as the hedging instrument. The forecast aluminium sales, priced using the LME price and

the Midwest premium, represent the hedged item.

The hedging ratio is 1:1, as the quantity of sales designated as being hedged matches the notional amount of the hedging instrument. The hedging

instrument’s notional amount, expressed in equivalent metric tonnes of aluminium, is derived from our expected electricity consumption under the

power contracts as well as other relevant contract parameters.

Financial statements continued

Notes to the 2023 financial statements

210 Annual Report on Form 20-F 2023 | riotinto.com

When we designate such embedded derivatives as the hedging instrument in a cash flow hedge, we recognise the effective portion of the change in

the fair value of the hedging instrument in other comprehensive income, and it 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.

We recognise any ineffectiveness relating to the hedging relationship immediately in the income statement.

Sources of ineffectiveness include 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.

We held the following notional aluminium forward sales contracts embedded in the power contracts as at 31 December:

	2023
	Total	Within 1 year	Between 1 and 5 years	Between 5 and 10 years
Notional amount (in tonnes)	428,686	72,617	289,801	66,268
Notional amount (in US$ millions)	1,050	169	711	170
Average hedged rate (in US$ per tonne)	2,449	2,331	2,452	2,564

	2022
	Total	Within 1 year	Between 1 and 5 years	Between 5 and 10 years
Notional amount (in tonnes)	501,498	72,812	289,868	138,818
Notional amount (in US$ millions)	1,216	166	697	353
Average hedged rate (in US$ per tonne)	2,425	2,282	2,404	2,542

The impact on our financial statements of these hedging instruments and hedging items are:

	Aluminium embedded derivatives separated from the power contract (Hedging instrument)(a)			Highly probable forecast aluminium sales (Hedged item)
	Nominal US$m	Carrying amount US$m	Change in fair value in the period US$m	Cash flow hedge reserve(b) US$m	Change in fair value in the period US$m	Total hedging losses recognised in reserves US$m	Hedge ineffective- ness in the period gains/ (losses)(c) US$m	Losses reclassified from reserves to income statement(d) US$m
2023	1,050	(174)	3	(91)	(16)	(1)	4	(2)
2022	1,216	(189)	(119)	(87)	133	(110)	(9)	34

(a)Aluminium embedded derivatives (forward contracts and options) are contained within certain aluminium smelter electricity purchase contracts. The carrying amount of US$174 million (2022:

US$189 million) is shown within “Other financial assets and liabilities”.

(b)The difference between this amount and the total cash flow hedge reserve of the Group (shown in note 35) relates to our cash flow hedge on the sterling bond (refer to interest rate risk section).

(c)Hedge ineffectiveness is included in “net operating costs” (within “raw materials, consumables, repairs and maintenance” - refer to note 7) in the income statement.

(d)On realisation of the hedge, realised amounts are reclassified from reserves to consolidated sales revenue in the income statement.

There was no cost of hedging recognised in 2023 or 2022 relating to this hedging relationship.

Sensitivity analysis

Our commodity derivatives are impacted by changes in market prices. The table below summarises the impact that changes in aluminium market

prices have on aluminium forward and option contracts embedded in power supply agreements outstanding at 31 December 2023. Any change in

price will result in an offsetting change in our future earnings.

	Change in market prices	2023 US$m	2022 US$m
Effect on net earnings	+10%	(52)	(57)
	(10)%	67	83
Effect on equity	+10%	(81)	(90)
	(10)%	70	65

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 - Upper Calliope Solar Farm power purchase agreement in Queensland

On 22 December 2023, as part of the program to develop renewable energy solutions for our Queensland aluminium assets, we entered into

a long-term renewable 1.1GW power purchase agreement to buy renewable electricity and associated green products to be generated in the

future from Upper Calliope Solar Farm. The contract is accounted for as a financial derivative with a zero fair value at inception and an

immaterial fair value at year-end. It will require complex derivative measurement over the contract’s term categorised under level 3 with

significant unobservable inputs related to future energy prices.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 211

24 Financial instruments and risk management continued

(v) Foreign exchange risk

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.

Sensitivity analysis

The table below shows the estimated retranslation effect on financial assets and financial liabilities at 31 December, including intragroup balances,

of a 10% strengthening in the closing exchange rate of the USD against significant currencies. We deem 10% to be the annual exchange rate

movement that is reasonably probable (on an annual basis over the long run) for any of our significant currencies and therefore an appropriate

representation for the sensitivity analysis.

	2023			2022
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	69	228	(1,036)	68	(319)	(986)
Canadian dollar	76	(361)	—	74	(219)	—

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 2023, 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 2024 and therefore this illustrative information

should be used with caution.

Financial statements continued

Notes to the 2023 financial statements

212 Annual Report on Form 20-F 2023 | riotinto.com

Valuation hierarchy of financial instruments carried at fair value on a recurring basis

The table below shows the classifications of our financial instruments by valuation method in accordance with IFRS 13 “Fair Value Measurement” at

31 December.

All instruments shown as being held at fair value have been classified as fair value through the profit and loss unless specifically footnoted.

		2023					2022
		Held at fair value			Held at amortised cost US$m	Total US$m	Held at fair value			Held at amortised cost US$m	Total US$m
	Note	Level 1(a) US$m	Level 2(b) US$m	Level 3(c) US$m			Level 1(a) US$m	Level 2(b) US$m	Level 3(c) US$m
Assets
Cash and cash equivalents(d)	22	2,722	—	—	6,951	9,673	2,725	—	—	4,050	6,775
Investments in equity shares and funds(e)	23	85	—	96	—	181	147	—	75	—	222
Other investments, including loans(f)	23	896	—	228	153	1,277	2,018	—	229	28	2,275
Trade and other financial receivables(g)	17	9	1,383	—	1,851	3,243	18	1,306	—	1,441	2,765
Forward, option and embedded derivatives contracts, not designated as hedges(h)	23	—	28	26	—	54	—	16	51	—	67
Derivatives related to net debt(i)	23	—	87	—	—	87	—	2	—	—	2
Liabilities
Trade and other financial payables(j)	18	—	(47)	—	(6,277)	(6,324)	—	(30)	—	(6,455)	(6,485)
Forward, option and embedded derivatives contracts, designated as hedges(h)	23	—	—	(174)	—	(174)	—	—	(189)	—	(189)
Forward, option and embedded derivatives contracts, not designated as hedges(h)	23	—	(63)	(29)	—	(92)	—	(57)	(35)	—	(92)
Derivatives related to net debt(i)	23	—	(516)	—	—	(516)	—	(692)	—	—	(692)

(a)Valuation is based on unadjusted quoted prices in active markets for identical financial instruments.

(b) Valuation is based on inputs that are observable for the financial instruments, which include quoted prices for similar instruments or identical instruments in markets which are not considered to

be active, or inputs, either directly or indirectly based on observable market data.

(c)Valuation is based on inputs that cannot be observed using market data (unobservable inputs). The change in valuation of our level 3 instruments for the year to 31 December is as follows:

	2023	2022
Level 3 financial assets and liabilities	US$m	US$m
Opening balance	131	177
Currency translation adjustments	(2)	(4)
Total realised gains/(losses) included in:
– consolidated sales revenue	12	16
– net operating costs	(18)	365
Total unrealised gains included in:
– net operating costs	43	124
Total unrealised losses transferred into other comprehensive income through cash flow hedges	(1)	(110)
Additions to financial assets	29	41
Disposals/maturity of financial instruments	(47)	(478)
Closing balance	147	131
Net gains included in the income statement for assets and liabilities held at year end	31	103

(d)Our "cash and cash equivalents" of US$9,673 million (2022: US$6,775 million), includes US$2,722 million (2022: US$2,725 million) relating to money market funds which are treated as fair

value through profit or loss (FVPL) under IFRS 9 with the fair value movements going into finance income.

(e)Investments in equity shares and funds include US$157 million (2022: US$153 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 (FVOCI). The election is made at an individual investment level.

(f)Other investments, including loans, covers cash deposits in rehabilitation funds, government bonds, managed investment funds and royalty receivables.

(g)Trade receivables include provisionally priced invoices. The related revenue is initially based on forward market selling prices for the quotation periods stipulated in the contracts with changes

between the provisional price and the final price recorded separately within “Other revenue”. The selling price can be measured reliably for the Group's products, as it operates in active and

freely traded commodity markets. At 31 December 2023, US$1,362 million (2022: US$1,234 million) of provisionally priced receivables were recognised.

(h)Level 3 derivatives mainly consist of derivatives embedded in electricity purchase contracts linked to the LME, midwest premium and billet premium with terms expiring between 2025 and 2036

(2022: 2025 and 2036).

(i)Net debt derivatives include interest rate swaps and cross-currency swaps. As part of the ISDA Fallbacks Protocol, on 1 July 2023 we completed the transition of our US LIBOR derivatives to

SOFR on cessation of US LIBOR at 30 June 2023. There has been no impact on our hedging arrangements after taking into account the IFRS 9 LIBOR reform reliefs.

(j)Trade and other financial payables comprise trade payables, other financial payables, accruals and amounts due to equity accounted units within note 18.

There were no material transfers between level 1 and level 2, or between level 2 and level 3 in the current or prior year.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 213

24 Financial instruments and risk management continued

Valuation techniques and inputs

The techniques used to value our more significant fair value assets/(liabilities) categorised under level 2 and level 3 are summarised below:

	2023	2022
Description	Fair value US$m	Fair value US$	Valuation technique	Significant Inputs
Level 2
Interest rate swaps	(163)	(356)	Discounted cash flows	–Applicable market quoted swap yield curves –Credit default spread
Cross currency interest rate swaps	(266)	(334)	Discounted cash flows	–Applicable market quoted swap yield curves –Credit default spread –Market quoted FX rate
Provisionally priced receivables	1,362	1,234	Closely related listed product	–Applicable forward quoted metal price
Level 3
Derivatives embedded in electricity contracts	(186)	(208)	Option pricing model	–LME forward aluminium price –Midwest premium and billet premium
Royalty receivables	214	209	Discounted cash flows	–Forward commodity price –Mine production

Sensitivity analysis in respect of level 3 financial instruments

For assets/(liabilities) classified under level 3, the effect of changing the significant unobservable inputs on carrying value has been calculated using

a movement that we deem to be reasonably probable.

To value the long-term aluminium embedded power derivatives, we use unobservable inputs when the term of the derivative extends beyond

observable market prices. Changing the level 3 inputs to reasonably possible alternative assumptions does not change the fair value significantly,

taking into account the expected remaining term of contracts for either reported period. The fair value of these derivatives is a net liability of US$186

million at 31 December 2023 (2022: US$208 million).

Impact of climate change on our business - coal royalty receivables

At 31 December 2023, royalty receivables include amounts arising from our divested coal businesses with a carrying value of US$214 million

(2022: US$209 million). These are classified as “Other investments, including loans” within note 23. The fair values are determined using level

3 unobservable inputs. These royalty receivables include US$90 million from forecast production beyond 2030. These have not been adjusted

for potential changes in production rates that could occur due to climate change targets impacting the operator.

The main unobservable input is the long-term coal price used over the life of these royalty receivables. A 15% increase in the coal spot price

would result in a US$64 million increase (2022: US$68 million) in the carrying value. A 15% decrease in the coal spot price would result in a

US$39 million decrease (2022: US$18 million) in the carrying value. We have used a 15% assumption to calculate our exposure as it

represents the annual coal price movement that we deem to be reasonably probable (on an annual basis over the long run).

Fair values disclosure of financial instruments

The following table shows the carrying amounts and fair values of our borrowings including those which are not carried at an amount which

approximates their fair value at 31 December. The fair values of some of our financial instruments approximate their carrying values because of their

short maturity, or because they carry floating rates of interest.

	2023		2022
	Carrying value US$m	Fair value US$m	Carrying value US$m	Fair value US$m
Listed bonds	8,607	8,672	6,631	6,649
Oyu Tolgoi project finance	3,850	4,090	3,770	3,928
Other	544	494	670	615
Total borrowings (including overdrafts)	13,001	13,256	11,071	11,192

Borrowings relating to listed bonds are categorised as level 1 in the fair value hierarchy while those relating to project finance drawn down by Oyu

Tolgoi use a number of level 3 valuation inputs. Our remaining borrowings have a fair value measured by discounting estimated cash flows with an

applicable market quoted yield, and are categorised as level 2 in the fair value hierarchy.

Financial statements continued

Notes to the 2023 financial statements

214 Annual Report on Form 20-F 2023 | riotinto.com

Our people

Summarised below are the key financial metrics relating to our people.

25 Average number of employees

	Subsidiaries and joint operations			Equity accounted units (Rio Tinto share)
	2023	2022	2021	2023	2022	2021
Principal locations of employment:
Australia and New Zealand	25,045	23,829	21,861	725	704	648
Canada	13,864	13,344	12,270	5	—	—
UK	323	202	189	—	—	—
Europe	912	994	1,003	25	—	—
Africa	3,180	2,797	2,484	1,176	1,218	1,253
US	3,973	3,655	3,471	58	—	—
Mongolia	4,700	4,175	3,513	—	—	—
South America	389	286	213	1,414	1,383	1,353
India	611	396	354	—	—	—
Singapore	469	454	450	—	—	—
Other countries(a)	305	289	283	—	—	—
Total	53,771	50,421	46,091	3,403	3,305	3,254

(a) “Other countries” primarily includes employees in the Middle East (excluding Oman which is included in Africa), and other countries in Asia which are not shown separately in the table above.

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.

People employed by contractors are not included.

26 Employment costs and provisions

	Note	2023 US$m	2022 US$m	2021 US$m
Total employment costs
– Wages and salaries		5,625	5,115	4,699
– Social security costs		470	425	386
– Net post-retirement charge	28	449	559	554
– Share-based payment charge	27	144	122	126
		6,688	6,221	5,765
Less: charged within movement in provisions (see below)		(52)	(219)	(252)
Total employment costs	7	6,636	6,002	5,513

	2023			2022
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	1,294	364	1,658	2,492
Adjustment on currency translation	25	7	32	(99)
Charged/(credited) to profit:
– increases to existing and new provisions	—	78	78	231
– unused amounts reversed	(6)	(20)	(26)	(12)
Utilised in year	(216)	(61)	(277)	(254)
Re-measurement losses/(gains) recognised in other comprehensive income	102	—	102	(701)
Transfers and other movements	(10)	1	(9)	1
At 31 December	1,189	369	1,558	1,658
Balance sheet analysis:
Current	68	293	361	353
Non-current	1,121	76	1,197	1,305
Total employment provisions	1,189	369	1,558	1,658

(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 28.

(b)The provision for other employee entitlements includes a provision for long service leave of US$296 million (2022: US$271 million), based on the relevant entitlements in certain Group

operations, and includes US$17 million (2022: US$32 million) of provision for redundancy and severance payments.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 215

27 Share-based payments

The Rio Tinto plc and Rio Tinto Limited share-based incentive plans are

as follows.

UK Share Plan

The fair values of Matching and Free Share awards are the market

value of the shares on the date of purchase. The awards are settled in

equity.

Equity Incentive Plan

Since 2018, all long-term incentive awards have been granted under the

2018 Equity Incentive Plan which allows 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.

Performance Share Awards

Participants are generally assigned shares in settlement of their PSA on

vesting. Therefore the awards are accounted for in accordance with the

requirements applying to equity-settled share-based payment

transactions, including the dividends accumulated from date of award to

vesting.

The awards are subject to Total Shareholder Return (TSR) performance

conditions. The fair value of the awards is calculated using a Monte

Carlo simulation model taking into account the TSR performance

conditions. Forfeitures prior to vesting are assumed at 5% per annum of

outstanding awards (2022: 5% per annum).

Management Share Awards

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 7%

per annum of outstanding awards (2022: 7% per annum).

Bonus Deferral Awards

Bonus Deferral Awards provide for the mandatory deferral of 50% of the

bonuses 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 on the day of grant is based on

the share price on the day of grant. Forfeitures prior to vesting are

assumed at 3% per annum of outstanding awards (2022: 3% per

annum).

Global Employee Share Plans

The Global Employee Share Plans were introduced in 2012 and 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 to a

deduction for forfeitures prior to vesting which are assumed at 5% per

annum of outstanding awards (2022: 5% per annum).

The PSA, MSA, BDA and awards under the Global Employee Share

Plans and UK Share Plan together represent 100% (2022: 100%) of the

total IFRS 2 “Share-based Payment” charge for Rio Tinto plc and Rio

Tinto Limited plans in 2023.

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.

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 either 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.

The charge that has been recognised in the income statement for Rio

Tinto’s share-based incentive plans, and the related liability (for cash-

settled awards), is set out in the table below.

	Charge recognised for the year			Liability at the end of the year
	2023 US$m	2022 US$m	2021 US$m	2023 US$m	2022 US$m
Equity-settled awards	140	117	122	—	—
Cash-settled awards	4	5	4	6	7
Total	144	122	126	6	7

Financial statements continued

Notes to the 2023 financial statements

216 Annual Report on Form 20-F 2023 | riotinto.com

Performance Share Awards (granted under either the Performance Share Plans or the Equity Incentive Plans)

	Rio Tinto plc awards				Rio Tinto Limited awards
	2023 number	Weighted average fair value at grant date 2023 £	2022 number	Weighted average fair value at grant date 2022 £	2023 number	Weighted average fair value at grant date 2023 A$	2022 number	Weighted average fair value at grant date 2022 A$
Unvested awards at 1 January	2,903,449	24.36	3,376,072	24.26	1,040,240	52.51	1,276,694	50.46
Awarded	562,747	28.40	518,950	25.60	287,714	61.66	256,508	51.21
Forfeited	(166,376)	27.94	(9,973)	31.68	(28,789)	51.91	(38,733)	51.09
Failed performance conditions	—	—	(326,522)	32.83	—	—	(149,788)	61.40
Vested	(703,009)	26.84	(655,078)	20.49	(287,973)	53.88	(304,441)	38.68
Unvested awards at 31 December	2,596,811	24.34	2,903,449	24.36	1,011,192	54.74	1,040,240	52.51

	Rio Tinto plc awards				Rio Tinto Limited awards
	2023 number	Weighted average share price at vesting 2023 £	2022 number	Weighted average share price at vesting 2022 £	2023 number	Weighted average share price at vesting 2023 A$	2022 number	Weighted average share price at vesting 2022 A$
Vested awards settled in shares during the year (including dividend shares applied on vesting)	767,439	59.21	632,533	54.96	238,405	122.58	247,216	115.25
Vested awards settled in cash during the year (including dividend shares applied on vesting)	181,492	58.36	230,006	54.67	140,690	123.40	140,479	115.35

In addition to the equity-settled awards shown above, there were 24,365 Rio Tinto plc and 19,881 Rio Tinto Limited cash-settled awards outstanding

at 31 December 2023 (2022: 26,394 Rio Tinto plc and 23,917 Rio Tinto Limited cash-settled awards outstanding). The total liability for these awards

at 31 December 2023 was US$1 million (2022: US$2 million).

Management Share Awards, Bonus Deferral Awards (granted under the Equity Incentive Plans), Global Employee Share

Plans and UK Share Plan (combined)

	Rio Tinto plc awards(a)				Rio Tinto Limited awards
	2023 number	Weighted average fair value at grant date 2023 £	2022 number	Weighted average fair value at grant date 2022 £	2023 number	Weighted average fair value at grant date 2023 A$	2022 number	Weighted average fair value at grant date 2022 A$
Unvested awards at 1 January(b)	2,585,679	47.22	2,493,826	43.55	2,340,705	95.27	2,164,568	92.31
Awarded	1,298,578	49.59	1,187,887	50.37	1,159,498	107.86	1,068,556	95.69
Forfeited	(113,473)	57.02	(146,816)	56.66	(144,531)	102.40	(155,631)	96.46
Cancelled	(71,160)	46.21	(65,267)	44.99	(61,993)	93.15	(46,300)	86.44
Vested	(889,496)	39.59	(883,951)	39.69	(712,686)	86.09	(690,488)	86.96
Unvested awards at 31 December(b)	2,810,128	50.36	2,585,679	47.22	2,580,993	103.11	2,340,705	95.27
Comprising:
– Management Share Awards	1,321,207	54.05	1,220,559	48.82	1,211,757	113.03	1,150,641	103.00
– Bonus Deferral Awards	102,388	55.64	139,782	55.96	56,597	113.90	60,862	113.13
– Global Employee Share Plan	1,350,559	46.22	1,191,738	44.51	1,312,639	93.50	1,129,202	86.43
– UK Share Plan	35,974	54.68	33,600	49.05	—	—	—	—
Unvested awards at 31 December(b)	2,810,128	50.36	2,585,679	47.22	2,580,993	103.11	2,340,705	95.27

(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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 217

27 Share-based payments continued

	Rio Tinto plc awards(a)				Rio Tinto Limited awards
	2023 number	Weighted average share price at vesting 2023 £	2022 number	Weighted average share price at vesting 2022 £	2023 number	Weighted average share price at vesting 2023 A$	2022 number	Weighted average share price at vesting 2022 A$
Vested awards settled in shares during the year (including dividend shares applied on vesting):
– Management Share Awards	537,748	57.86	529,054	54.59	476,813	121.87	486,587	113.18
– Bonus Deferral Awards	87,475	55.43	136,317	55.11	23,569	123.91	32,080	107.78
– Global Employee Share Plan	493,187	55.05	478,204	51.52	374,232	118.12	337,782	104.82
– UK Share Plan	6,791	53.28	12,176	55.20	—	—	—	—
Vested awards settled in cash during the year (including dividend shares applied on vesting):
– Bonus Deferral Awards	—	—	23,611	55.98	—	—	12,699	113.23

(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.

In addition to the equity-settled awards shown above, there were 90,331 Rio Tinto plc and 7,913 Rio Tinto Limited cash-settled awards outstanding

at 31 December 2023 (2022: 90,748 Rio Tinto plc and 9,685 Rio Tinto Limited cash-settled awards outstanding). The total liability for these awards

at 31 December 2023 was US$5 million (2022: US$5 million).

28 Post-retirement benefits

Description of plans

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.

Financial statements continued

Notes to the 2023 financial statements

218 Annual Report on Form 20-F 2023 | riotinto.com

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 dependants. Eligibility for coverage is dependent upon certain age and service criteria. These arrangements

are unfunded, and are included in the reported defined benefit obligations.

Recognition and measurement

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.

Plan assets

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. The Group

monitors its exposure to changes in interest rates and equity markets and also measures its balance sheet pension risk using a value at risk

approach. These measures are considered when deciding whether significant changes in investment strategy are required.

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 with the

Group’s tolerance for risk. In the US the Group has direct control over the investment policy, subject to local investment regulations.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 219

28 Post-retirement benefits continued

The proportions of the total fair value of assets in the pension plans for each asset class at 31 December were as follows.

	2023		2022
Equities	16.6%		18.0%
– Quoted(a)		11.1%		12.3%
– Private(b)		5.5%		5.7%
Bonds(c)	47.4%		58.1%
– Government fixed income		21.6%		24.6%
– Government inflation-linked		1.6%		5.0%
– Corporate and other publicly quoted		16.5%		19.6%
– Private		7.7%		8.9%
Property(d)	8.7%		10.0%
– Quoted property funds		2.5%		2.9%
– Unquoted property funds		6.2%		7.1%
Qualifying insurance policies(e)	24.9%		9.7%
Cash and other(f)(g)	2.4%		4.2%
Total	100.0%		100.0%

(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. In October 2023, the trustee of the Rio Tinto 2009 Pension Fund purchased a

buy-in contract for US$1.7 billion, largely through an in specie transfer of assets. 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 to these

instruments is closely monitored and maintained at a level that does not endanger the liquidity of any pension plan.

The assets of the plans are managed on a day-to-day basis by external specialist fund managers. These managers may invest in the Group’s

securities subject to limits imposed by the relevant fiduciary committees and local legislation. The approximate total holding of Group securities

within the plans is US$2 million (2022: US$2 million).

Financial statements continued

Notes to the 2023 financial statements

220 Annual Report on Form 20-F 2023 | riotinto.com

Maturity of defined benefit obligations

An approximate analysis of the maturity of the obligations is given in the table below.

	Pension benefits	Other benefits	2023 Total	2022 Total	2021 Total
Proportion relating to current employees	17%	15%	17%	18%	20%
Proportion relating to former employees not yet retired	9%	—%	9%	9%	11%
Proportion relating to retirees	74%	85%	74%	73%	69%
Total	100%	100%	100%	100%	100%
Average duration of obligations (years)	10.8	10.8	10.8	11.4	13.8

Most of the Group’s defined benefit pension plans are closed to new entrants, therefore the carrying value of the Group’s post-employment

obligations is less sensitive to assumptions about future salary increases than to other assumptions such as future inflation.

Geographical distribution of defined benefit obligations

An approximate analysis of the geographic distribution of the obligations is given in the table below:

	Pension benefits	Other benefits	2023 Total	2022 Total	2021 Total
Canada	58%	50%	57%	58%	55%
UK	26%	1%	25%	24%	28%
US	8%	46%	10%	10%	10%
Switzerland	6%	—%	6%	6%	5%
Other	2%	3%	2%	2%	2%
Total	100%	100%	100%	100%	100%

Total expense recognised in the income statement

	Pension benefits US$m	Other benefits US$m	2023 Total US$m	2022 Total US$m	2021 Total US$m
Current employer service cost for defined benefit plans	(76)	(3)	(79)	(143)	(167)
Past service credit/(cost)	88	(1)	87	—	(2)
Settlement losses	—	—	—	—	(3)
Net interest on net defined benefit liability	13	(34)	(21)	(36)	(52)
Non-investment expenses paid from the plans	(20)	—	(20)	(13)	(15)
Total defined benefit credit/(expense)	5	(38)	(33)	(192)	(239)
Current employer service cost for defined contribution and industry-wide plans	(414)	(2)	(416)	(367)	(315)
Total expense recognised in the income statement	(409)	(40)	(449)	(559)	(554)

These expense amounts are included as an employee cost within net operating costs.

The settlement loss in 2021 resulted from pension obligations in France being transferred to an external insurance company.

Total amount recognised in other comprehensive income before tax

	2023 US$m	2022 US$m	2021 US$m
Actuarial (losses)/gains	(407)	3,410	655
Impact of buy-in(a)	(216)	—	—
Return on assets, net of interest on assets	222	(2,831)	371
Losses on application of asset ceiling	(60)	(1)	—
Re-measurement (losses)/gains on pension and post-retirement healthcare plans	(461)	578	1,026

(a)In October 2023, the trustee of the Rio Tinto 2009 Pension Fund (RT09), a UK based scheme, purchased a bulk annuity contract - buy-in contract - which covers all scheme members. The bulk

annuity contract is a Fund asset which provides an income to the RT09 which matches the pension paid out by the Fund. No formal decision to progress to buy-out and winding up of the RT09

can be made until such time as the Company and trustee agree on a number of key areas, including use of any residual surplus. As such, the trustee retains the legal responsibility to make

benefit payments and the loss arising on this transaction was charged to Other Comprehensive Income.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 221

28 Post-retirement benefits continued

Amounts recognised in the balance sheet

The following amounts were measured in accordance with IAS 19 at 31 December.

	2023			2022
	Pension benefits US$m	Other benefits US$m	Total US$m	Total US$m
Total fair value of plan assets	11,138	—	11,138	10,708
Present value of obligations – funded	(10,799)	—	(10,799)	(10,226)
Present value of obligations – unfunded	(368)	(628)	(996)	(951)
Present value of obligations – total	(11,167)	(628)	(11,795)	(11,177)
Effect of asset ceiling	(66)	—	(66)	(1)
Net deficit to be shown in the balance sheet	(95)	(628)	(723)	(470)
Comprising:
– Deficits	(561)	(628)	(1,189)	(1,294)
– Surpluses	466	—	466	824
Net (deficit)/surplus on pension plans	(95)	—	(95)	152
Unfunded post-retirement healthcare obligation	—	(628)	(628)	(622)

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 26.

Funding policy and contributions to plans

The Group reviews the funding position of its pension plans on a regular basis and considers whether to provide funding above the minimum 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.

	2023			2022	2021
	Pension benefits US$m	Other benefits US$m	Total US$m	Total US$m	Total US$m
Contributions to defined benefit plans	205	32	237	211	464
Contributions to defined contribution plans	408	2	410	363	311
Total	613	34	647	574	775

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$6 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.

In 2021, additional cash of US$294 million was paid in order to settle pension obligations in France. This amount was paid to an external insurer,

along with the transfer of existing pension assets in order to transfer the obligations to that insurer.

As contributions to many plans are reviewed on at least an annual basis, the contributions for 2024 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 2024 are estimated to be around US$70 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 2024 are expected to be similar to the amounts paid in 2023.

Financial statements continued

Notes to the 2023 financial statements

222 Annual Report on Form 20-F 2023 | riotinto.com

Movements in the net defined benefit liability

A summary of the movement in the net defined benefit liability is shown in the first table below. The subsequent tables provide a more detailed

analysis of the movements in the present value of the obligations and the fair value of assets.

	2023			2022
	Pension benefits US$m	Other benefits US$m	Total US$m	Total US$m
Change in the net defined benefit liability
Net defined benefit surplus/(liability) at the start of the year	152	(622)	(470)	(1,028)
Amounts recognised in income statement	5	(38)	(33)	(192)
Amounts recognised in other comprehensive income	(468)	7	(461)	578
Employer contributions	205	32	237	211
Assets transferred to defined contribution section	(6)	—	(6)	(4)
Currency exchange rate gains/(losses)	17	(7)	10	(35)
Net defined benefit liability at the end of the year	(95)	(628)	(723)	(470)

	2023			2022
	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	(10,555)	(622)	(11,177)	(15,728)
Current employer service costs	(76)	(3)	(79)	(143)
Past service credit/(cost)	88	(1)	87	—
Settlements	4	—	4	—
Interest on obligation	(499)	(34)	(533)	(370)
Contributions by plan participants	(19)	—	(19)	(20)
Benefits paid	716	32	748	783
Experience (losses)/gains	(69)	29	(40)	(170)
Changes in financial assumptions (losses)/gains	(393)	(25)	(418)	3,563
Changes in demographic assumptions gains	48	3	51	17
Currency exchange rate (losses)/gains	(412)	(7)	(419)	891
Present value of obligation at the end of the year	(11,167)	(628)	(11,795)	(11,177)

	2023			2022
	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	10,708	—	10,708	14,700
Settlements	(4)	—	(4)	—
Interest on assets	512	—	512	334
Contributions by plan participants	19	—	19	20
Contributions by employer	205	32	237	211
Benefits paid	(716)	(32)	(748)	(783)
Non-investment expenses	(20)	—	(20)	(13)
Return on plan assets, net of interest on assets	222	—	222	(2,831)
Impact of buy-in	(216)	—	(216)	—
Assets transferred to defined contribution section	(6)	—	(6)	(4)
Currency exchange rate gains/(losses)	434	—	434	(926)
Fair value of plan assets at the end of the year	11,138	—	11,138	10,708

The impact of lower interest rates on bonds and qualifying insurance policies explains most of the return on plan assets, net of interest on assets in

2023.

The resulting effect of applying an asset ceiling is a loss of US$60 million and a loss of US$5 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. 

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 223

28 Post-retirement benefits continued

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:
	Canada	UK	US	Switzerland
At 31 December 2023
Discount rate	4.6%	4.5%	4.8%	1.5%
Long-term inflation(a)	1.9%	3.1%	2.2%	1.2%
Rate of increase in pensions	0.2%	2.6%	—%	2.3%
At 31 December 2022
Discount rate	5.0%	4.9%	5.3%	2.3%
Long-term inflation(a)	2.1%	3.3%	2.4%	1.2%
Rate of increase in pensions	0.5%	2.8%	—%	3.4%
(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 2023 was 2.5% (2022: 2.7%).

The main financial assumptions used for the healthcare plans, which are predominantly in the US and Canada, were: discount rate: 5.0% (2022:

5.4%); medical trend rate: 8.3% reducing to 4.7% by the year 2032 broadly on a straight line basis (2022: 7.1%, reducing to 4.8% by the year 2031);

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 (2022: 27

years) and that a man aged 60 in 2041 would have a weighted average expected future lifetime of 28 years (2022: 28 years). The 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. Adjustments have been made to some of our plans within the demographic assumptions for the

impact of the Covid-19 pandemic.

Sensitivity analysis

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.

		2023		2022
		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 0.5 percentage points	460	31	483	32
	Decrease of 0.5 percentage points	(514)	(33)	(510)	(34)
Long-term inflation	Increase of 0.5 percentage points	(183)	(9)	(174)	(10)
	Decrease of 0.5 percentage points	176	8	168	9
Demographic – allowance for future improvements in longevity	Participants assumed to have the mortality rates of individuals who are one year older	244	7	241	8
	Participants assumed to have the mortality rates of individuals who are one year younger	(244)	(7)	(241)	(8)

Financial statements continued

Notes to the 2023 financial statements

224 Annual Report on Form 20-F 2023 | riotinto.com

29 Directors’ and key management remuneration

Aggregate remuneration, calculated in accordance with the UK Companies Act 2006, of the Directors of the parent companies was as follows.

	2023 US$'000	2022 US$'000	2021 US$'000
Emoluments	7,461	6,726	6,568
Long-term incentive plans	8,746	4,691	1,587
	16,207	11,417	8,155
Pension contributions: defined contribution plans	20	10	9

The Group defines key management personnel as the Directors and certain members of the Executive Committee. The Executive Committee

includes the Executive Directors, product group Chief Executive Officers and Group executives.

The aggregate remuneration including pension contributions incurred by Rio Tinto plc in respect of its directors was US$15,184,000 (2022:

US$10,692,000; 2021: US$7,522,000). The aggregate pension contribution to defined contribution plans was US$20,000 (2022: US$10,000; 2021:

US$9,000). The aggregate remuneration, including pension contributions and other retirement benefits, incurred by Rio Tinto Limited in respect of its

directors was US$1,043,000 (2022: US$735,000; 2021: US$642,000). The aggregate pension contribution to defined contribution plans was US$nil

(2022: US$nil; 2021: US$nil).

During 2023, no director (2022: nil; 2021: nil) accrued retirement benefits under defined benefit arrangements, and two directors (2022: two; 2021:

two) accrued retirement benefits under defined contribution arrangements.

Emoluments included in the table above have been translated from local currency at the average exchange rate for the year with the exception of

bonus payments, which have been translated at the year-end rate.

Aggregate compensation, representing the expense recognised, under IFRS as defined in the “Basis of preparation” section, of the Group’s key

management, including directors, was as follows.

	2023 US$'000	2022 US$'000	2021 US$'000
Short-term employee benefits and costs	16,159	14,258	18,184
Post-employment benefits	155	174	300
Employment termination benefits	155	—	—
Share-based payments	10,305	10,846	10,303
Total	26,774	25,278	28,787

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 additional cost of hire. In total, they amount to US$1,321,000 (2022: US$1,173,000; 2021: US$1,511,000).

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 225

Our Group structure

The Group’s principal subsidiaries (note 30), joint operations (note 31), joint ventures and associates (note 32) are in most cases held by

intermediate holding companies and not directly by Rio Tinto plc or Rio Tinto Limited. This section of the notes only includes those companies that

have a more significant impact on the profit or operating assets of the Group.

30 Principal subsidiaries

The Group’s principal subsidiaries at 31 December 2023 are summarised in the table below.

Company and country of incorporation/operation	Principal activities	Class of shares held	Proportion of class held (%)	Group interest (voting %)	Other interest (voting %)
Australia
Argyle Diamonds Limited	Mining and processing of diamonds (until November 2020)	Class A	100	100	—
		Class B	100
Dampier Salt Limited	Salt and gypsum production	Ordinary	68.36	68.36	31.64
Energy Resources of Australia Ltd	Uranium processing (until January 2021)	Class A	86.33	86.33	13.67
		Ordinary	86.33
Hamersley Iron Pty Limited	Iron ore mining	Ordinary	100	100	—
North Mining Limited(a)	Iron ore mining	Ordinary	100	100	—
		Preference	100
Rio Tinto Aluminium (Holdings) Limited	Bauxite mining, alumina production, primary aluminium smelting	Ordinary	100	100	—
Robe River Mining Co Pty Ltd(a)	Iron ore mining	Class A	40	73.61	26.39
		Class B	76.36
Argentina
Rincon Mining Pty Limited(b)	Exploration and development of lithium asset.	Ordinary	100	100	–
Brazil
Rio Tinto do Brasil Ltda.(c)	Alumina production and bauxite mining	Quota	100	100	—
Canada
Diavik Diamond Mines (2012) Inc.	Diamond mining and processing	Common	100	100	—
Iron Ore Company of Canada(d)	Iron ore mining; iron ore pellets production	Series A	91.41	58.72	41.28
		Series E	100
		Series F	100
Rio Tinto Alcan Inc.	Bauxite mining; alumina refining; aluminium smelting	Common	100	100	—
Rio Tinto Fer et Titane Inc.	Titanium dioxide feedstock; high purity iron and steel production	Common	100	100	—
		Class B preference	100
		Preference	100
Guinea
Simfer Jersey Limited(e)	Iron ore project	Ordinary	53	53	47
Madagascar
QIT Madagascar Minerals SA(f)	Ilmenite mining	Common	84.20	79.98	20.02
		Investment certificates	100
Mongolia
Oyu Tolgoi LLC	Copper and gold mining	Common	66	66	34
Singapore
Rio Tinto Singapore Holdings Pte Ltd	Commercial activities	Ordinary	100	100	–
South Africa
Richards Bay Titanium (Proprietary) Limited(g)	Titanium dioxide, high purity iron production	B Ordinary	100	74	26
		B Preference	100
		Parent Preference	100
Richards Bay Mining (Proprietary) Limited(g)	Ilmenite, rutile and zircon mining	B Ordinary	100	74	26
		B Preference	100
		Parent Preference	100
United States
Kennecott Holdings Corporation (including Kennecott Utah Copper and Kennecott Exploration)	Copper and gold mining, smelting and refining and exploration activities	Common	100	100	—
Nuton LLC	Technology venture including investments and collaborations related to proprietary nature-based copper leach technologies and capabilities	Unit shares	100	100	—
U.S. Borax Inc.	Mining, refining and marketing of borates	Common	100	100	–
Resolution Copper Mining LLC	Exploration and development of copper	-	–	55	45

Financial statements continued

Notes to the 2023 financial statements

226 Annual Report on Form 20-F 2023 | riotinto.com

(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)Rincon Mining Pty Limited incorporated in Australia but operates in Argentina.

(c)Rio Tinto do Brasil Ltda holds the Group’s 10% interest in Consórcio de Alumínio do Maranhão, a joint operation in which the Group participates but is not a joint operator. The Group recognises

its share of assets, liabilities, revenues and expenses relating to this arrangement.

(d)Iron Ore Company of Canada is incorporated in the US, but operates in Canada.

(e)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 operates the Simandou mining project in Guinea. As at 31 December 2023, Simfer Jersey also owns 100% of Simfer InfraCo Guinée S.A., a

company incorporated in Guinea, which will deliver Simfer’s scope of the co-developed rail and port infrastructure. The Group therefore has a 45.05% indirect interest in Simfer S.A. and a 53%

indirect interest in Simfer InfraCo Guinée S.A. These entities are consolidated as subsidiaries and together referred to as the Simandou iron ore project.

(f)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%. During the year, a Memorandum of Understanding (MoU) was signed with the Malagasy Government in relation to their fiscal regime

for QMM which expired at the end of May 2023. The MoU gives effect to the application of a new fiscal regime for the next 25 years, with terms effective as of 1 July 2023. Terms of the MoU

includes the granting of a 15% free-carry equity stake to the Malagasy Government that can no longer be diluted, while maintaining their current 20% of the voting rights. As a result, the

Malagasy Government's non-controlling interest has been recognised for the first time, and QMM's net earnings has been presented net of amounts attributable to non-controlling interests from

1 July 2023. The initial recognition of non-controlling interests, and any subsequent recognition arising from future contributions, gives rise to a charge within equity as the transaction is between

Rio Tinto and the Malagasy Government acting in their capacity as shareholders and there are no changes to the net assets of QMM. As at 31 December 2023, the value of QMM’s non-

controlling interest is US$16 million.

(g)Additional classes of shares issued by Richards Bay Titanium (Proprietary) Limited and Richards Bay Mining (Proprietary) Limited representing non-controlling interests are not shown. The

Group’s total legal and beneficial interest in Richards Bay Titanium (Proprietary) Limited and Richards Bay Mining (Proprietary) Limited is 74%.

Summary financial information for subsidiaries that have non-controlling interests that are material to the Group

This summarised financial information is shown on a 100% basis. It represents the amounts shown in the subsidiaries’ financial statements prepared

in 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 2023 US$m	Iron Ore Company of Canada 2022 US$m restated(a)	Oyu Tolgoi LLC (b)(c) 2023 US$m	Oyu Tolgoi LLC (b)(c) 2022 US$m restated(a)
Revenue	2,314	2,634	1,625	1,424
Profit/(loss) after tax	445	756	(1,024)	(224)
–  attributable to non-controlling interests	184	312	(352)	(159)
–  attributable to Rio Tinto	261	444	(672)	(65)
Other comprehensive income/(loss)	60	(111)	—	—
Total comprehensive income/(loss)	505	645	(1,024)	(224)

Balance sheet summary as at 31 December	2023 US$m	2022 US$m	2023 US$m	2022 US$m
Non-current assets	3,170	2,963	15,335	13,667
Current assets	866	774	511	753
Current liabilities	(519)	(499)	(4,920)	(4,253)
Non-current liabilities	(1,005)	(973)	(12,544)	(10,731)
Net assets	2,512	2,265	(1,618)	(564)
–  attributable to non-controlling interests	1,052	946	(558)	(207)
–  attributable to Rio Tinto	1,460	1,319	(1,060)	(357)

Cash flow statement summary for the year ended 31 December	2023 US$m	2022 US$m	2023 US$m	2022 US$m
Cash flow from operations	801	1,153	345	406
Dividends paid to non-controlling interests	(103)	(142)	—	—

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)On 16 December 2022, we purchased the remaining 49% share of Turquoise Hill Resources Ltd. The Group now holds a 66% direct interest in Oyu Tolgoi LLC. Up until 15 December 2022 the

Group had a 51% interest in Turquoise Hill Resources Ltd, which held a 66% interest in OT and, therefore, had a 34% indirect interest in OT. Refer to note 5 for details.

(c)Under the terms of the project finance facility held by Oyu Tolgoi LLC, there are certain restrictions on the ability of Oyu Tolgoi LLC to make shareholder distributions.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 227

30 Principal subsidiaries continued

Income statement summary for the year ended 31 December	Robe River Mining Co Pty 2023 US$m	Robe River Mining Co Pty 2022 US$m restated(a)	Other companies and eliminations(b) 2023 US$m	Other companies and eliminations(b) 2022 US$m restated(a)	Robe River 2023 US$m	Robe River 2022 US$m restated(a)
Revenue	1,753	1,703	2,045	1,987	3,798	3,690
Profit after tax	848	814	825	865	1,673	1,679
–  attributable to non-controlling interests	339	323	—	—	339	323
–  attributable to Rio Tinto	509	491	825	865	1,334	1,356
Other comprehensive loss	40	(206)	36	(112)	76	(318)
Total comprehensive income	888	608	861	753	1,749	1,361

Balance sheet summary as at 31 December	2023 US$m	2022 US$m	2023 US$m	2022 US$m	2023 US$m	2022 US$m
Non-current assets	2,899	2,846	4,026	3,975	6,925	6,821
Current assets	808	756	711	609	1,519	1,365
Current liabilities	(157)	(112)	(358)	(2,724)	(515)	(2,836)
Non-current liabilities	(443)	(410)	(2,554)	(550)	(2,997)	(960)
Net assets	3,107	3,080	1,825	1,310	4,932	4,390
–  attributable to non-controlling interests	1,241	1,230	—	—	1,241	1,230
–  attributable to Rio Tinto	1,866	1,850	1,825	1,310	3,691	3,160

Cash flow statement summary for the year ended 31 December	2023 US$m	2022 US$m	2023 US$m	2022 US$m	2023 US$m	2022 US$m
Cash flow from operations	1,480	1,435	1,640	1,981	3,120	3,416
Dividends paid to non-controlling interests	(345)	(278)	—	—	(345)	(278)

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)“Other companies and eliminations” includes North Mining Limited (a wholly-owned subsidiary of the Group which accounts for its interest in Robe River) and goodwill of US$342 million (2022:

US$337 million) that arose on the Group’s acquisition of its interest in Robe River.

31 Principal joint operations

The Group’s principal joint operations at 31 December 2023 are summarised in the table below.

Company and country of incorporation/operation	Principal activities	Group interest (%)
Australia
Tomago Aluminium Joint Venture	Aluminium smelting	51.6
Gladstone Power Station Joint Venture	Power generation	42.1
Hope Downs Joint Venture	Iron ore mining	50
Western Range Joint Venture(a)	Iron ore mining	54
Queensland Alumina Limited(b)(c)	Alumina production	80
Pilbara Iron Arrangements	Infrastructure, corporate and mining services	See other relevant judgements call out box below
Canada
Aluminerie Alouette Inc.	Aluminium production	40
Pechiney Reynolds Quebec Inc(c)(d)	Aluminium smelting	50.2
New Zealand
New Zealand Aluminium Smelters Limited(b)(c)	Aluminium smelting	79.4

(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 a 79.4% interest in New Zealand Aluminium Smelters Limited and an 80% interest in Queensland Alumina Limited, 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.

(c)Queensland Alumina Limited, New Zealand Aluminium Smelters Limited 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 25.2%.

Financial statements continued

Notes to the 2023 financial statements

228 Annual Report on Form 20-F 2023 | riotinto.com

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$1,009

million (calculated on the basis of grossing up the tax written down value of the CUC assets). Other methods of calculating the gross-up might

give rise to different numbers.

32 Principal joint ventures and associates

Principal joint ventures

The Group’s principal joint ventures at 31 December 2023 are summarised in the table below.

Company and country of incorporation/operation	Principal activities	Number of shares held	Class of shares held	Proportion of class held (%)	Group interest (%)
Canada
Matalco Canada Inc.	Aluminium recycling	195,000	Class B Common	100	50
Chile
Minera Escondida Ltda(a)	Copper mining and refining	—	—	—	30
Oman
Sohar Aluminium Co. L.L.C.(b)	Aluminium smelting, power generation	37,500	Ordinary	20	20
United States
Matalco USA, LLC	Aluminium recycling	525,000	Unit shares	50	50

(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. The company has no share class.

(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

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 57.5% interest). In contrast, our partner has assessed Rio Tinto’s rights as protective and concluded that it controls Escondida 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.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 229

32 Principal joint ventures and associates continued

Summary information for joint ventures that are material to the Group

This summarised financial information is shown on a 100% basis. It represents the amounts shown in the joint ventures’ financial statements

prepared in accordance with IFRS under Group accounting policies, including fair value adjustments and amounts due to and from Rio Tinto.

	Minera Escondida Ltda(a) 2023 US$m	Minera Escondida Ltda(a) 2022 US$m
Revenue	9,187	8,760
Depreciation and amortisation	(1,183)	(1,100)
Other operating costs	(3,784)	(3,280)
Operating profit	4,220	4,380
Finance expense	(283)	(207)
Income tax(b)	(1,773)	(1,590)
Profit after tax	2,164	2,583
Other comprehensive (loss)/income	(13)	17
Total comprehensive income	2,151	2,600
Non-current assets	12,480	11,853
Current assets	2,751	2,563
Current liabilities	(1,607)	(1,450)
Non-current liabilities	(5,192)	(5,063)
Net assets	8,432	7,903
Assets and liabilities above include:
– cash and cash equivalents	360	377
– current financial liabilities	(677)	(340)
– non-current financial liabilities	(2,770)	(3,060)
Dividends received from joint venture (Rio Tinto share)	578	813

Reconciliation of the above amounts to the investment recognised in the Group balance sheet

Group interest	30%	30%
Net assets (100%)	8,432	7,903
Group’s ownership interest	2,530	2,371
Carrying value of Group’s interest	2,530	2,371

(a)In addition to its “Investment in equity accounted units”, the Group recognises deferred tax liabilities of US$354 million (2022: US$328 million) relating to tax on unremitted earnings of equity

accounted units.

(b)Income tax in 2023 includes a charge of US$252 million for the revaluation of deferred tax balances following the substantive enactment of the Chilean Royalty Bill which, effective from

1 January 2024, will implement a 1 percent royalty on revenues, a margin based tax with rates ranging between 8% and 26%, and a 46% cap to the overall Chilean tax burden of mining

companies.

Financial statements continued

Notes to the 2023 financial statements

230 Annual Report on Form 20-F 2023 | riotinto.com

Principal associates

The Group’s principal associates at 31 December 2023 are summarised in the table below.

Company and country of incorporation/operation	Principal activities	Number of shares held	Class of shares held	Proportion of class held (%)	Group interest (%)
Australia
Boyne Smelters Limited(a)	Aluminium smelting	153,679,560	Ordinary	59.4	59.4
Brazil
Mineração Rio do Norte S.A.(b)	Bauxite mining	50,000,000,000	Ordinary	25	22
		82,000,000,000	Preferred	20.5
United States
Halco (Mining) Inc.(c)	Bauxite mining	4,500	Common	45	45

(a)The parties that collectively control Boyne Smelters Limited 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)On 1 December 2023, we acquired a 10% equity interest (12.5% voting right) in Mineração Rio do Norte S.A. (MRN) from Companhia Brasileira de Aluminio (CBA) for a nominal amount which

resulted in an increase of our interest in MRN from 12% to 22% (25% voting right). In prior years, it was determined that we had significant influence through representation on MRN’s board of

directors and consequently the ability to participate in financial and operating policy decisions. Therefore, the increase in equity does not change the basis of consolidation and MRN remains

treated as an associate.

(c)Halco (Mining) Inc. has a 51% indirect interest in Compagnie des Bauxites de Guinée, a bauxite mine, the core assets of which are located in Guinea.

Summary information for joint ventures and associates that are not individually material to the Group

	2023 US$m	2022 US$m adjusted(a)
Carrying value of Group's interest(b)	1,878	927
Profit after tax	26	2
Other comprehensive income/(loss)	15	(27)
Total comprehensive income/(loss)	41	(25)

(a)Summary information for joint ventures and associates has been adjusted to exclude Sohar Aluminium Co. L.L.C as it is no longer considered individually material to the Group for disclosure.

(b)The increase in carrying value primarily relates to our investment in Matalco Canada Inc and Matalco USA, LLC on 1 December 2023. Refer to note 5 for details.

33 Related-party transactions

Information about material related-party transactions of the Rio Tinto Group is set out below.

Subsidiary companies and joint operations

Details of investments in principal subsidiary companies are disclosed in note 30. Information relating to joint operations can be found in note 31.

Equity accounted units

Transactions and balances with equity accounted units are summarised below. Purchases, trade and other receivables, and trade and other

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.

	2023 US$m	2022 US$m	2021 US$m
Income statement items
Purchases from equity accounted units	(1,163)	(1,429)	(1,167)
Sales to equity accounted units	349	563	432
Cash flow statement items
Dividends from equity accounted units	610	879	1,431
Net (funding of)/receipts from equity accounted units	(144)	(75)	6
Balance sheet items
Investments in equity accounted units(a)	4,407	3,298	3,504
Loans related to equity accounted units(b)	100	—	—
Trade and other receivables: amounts due from equity accounted units(c)	189	297	251
Trade and other payables: amounts due to equity accounted units	(206)	(294)	(253)

(a)Investments in equity accounted units include quasi-equity loans. Further information about investments in equity accounted units is set out in note 32.

(b)Includes initial funding for Simandou infrastructure, classified as “Other investments, including loans” pending finalisation of the project shareholder agreements.

(c)This includes prepayments of tolling charges.

Pension funds

Information relating to pension fund arrangements is set out in note 28.

Directors and key management

Details of Directors’ and key management’s remuneration are set out in note 29.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 231

Our equity

34 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.

Rio Tinto plc

	2023 Number (million)	2022 Number (million)	2021 Number (million)	2023 US$m	2022 US$m	2021 US$m
Issued and fully paid up share capital of 10p each
At 1 January	1,255.845	1,255.795	1,255.756	207	207	207
Ordinary shares issued under the Global Employee Share plan (GESP)	0.047	0.050	0.039	—	—	—
Shares purchased and cancelled(a)	—	—	—	—	—	—
At 31 December	1,255.892	1,255.845	1,255.795	207	207	207
Shares held by public
At 1 January	1,249.655	1,248.141	1,246.904
Shares reissued from treasury under the GESP	1.619	1.464	1.198
Ordinary shares issued under the GESP	0.047	0.050	0.039
Shares purchased and cancelled(a)	—	—	—
At 31 December	1,251.321	1,249.655	1,248.141
Shares held in treasury	4.571	6.190	7.654
Shares held by public	1,251.321	1,249.655	1,248.141
Total share capital	1,255.892	1,255.845	1,255.795
Other share classes
Special Voting Share of 10p each(b)	1 only	1 only	1 only
DLC Dividend Share of 10p each(b)	1 only	1 only	1 only

(a)The authority for the company to buy back its ordinary shares was renewed at the 2021 annual general meeting. No shares were bought back and cancelled in 2023, 2022 or 2021 under the on-

market buy-back programme.

(b)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 issued and is

governed by the terms of the DLC Merger Sharing Agreement.

During 2023, US$17 million of shares and ADRs (2022: US$16 million; 2021: US$18 million) were purchased by employee share ownership trusts

on behalf of Rio Tinto plc to satisfy employee share awards on vesting. At 31 December 2023, 253,371 shares (2022: 232,621; 2021: 259,583) and

45,694 ADRs (2022: 49,777; 2021: 46,977) shares were held in the employee share ownership trusts on behalf of Rio Tinto plc.

Rio Tinto Limited

	2023 Number (million)	2022 Number (million)	2021 Number (million)	2023 US$m	2022 US$m	2021 US$m
Issued and fully paid up share capital
At 1 January	371.21	371.21	371.21	3,330	3,570	3,781
Adjustment on currency translation				47	(240)	(211)
At 31 December	371.21	371.21	371.21	3,377	3,330	3,570
– Special Voting Share(a)	1 only	1 only	1 only
– DLC Dividend Share(a)	1 only	1 only	1 only
Total share capital	371.21	371.21	371.21

(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 facilitate the efficient management of funds within the DLC structure. Directors have the ability to issue an Equalisation Share if that is required under the terms of the DLC Merger

Sharing Agreement.

During 2023, US$78 million of shares (2022: US$84 million; 2021: US$95 million) were purchased by employee share ownership trusts on behalf of

Rio Tinto Limited to satisfy employee share awards on vesting. At 31 December 2023, 794,282 shares (2022: 979,495; 2021: 995,173) were held in

the employee share ownership trusts on behalf of Rio Tinto Limited.

Information relating to share-based incentive schemes is in note 27.

Financial statements continued

Notes to the 2023 financial statements

232 Annual Report on Form 20-F 2023 | riotinto.com

35 Other reserves and retained earnings

	2023 US$m	2022 US$m restated(a)	2021 US$m restated(a)
Capital redemption reserve(b)
At 1 January and 31 December	51	51	51
Cash flow hedge reserve
At 1 January	(51)	(11)	124
Cash flow hedge gains/(losses)	30	(167)	(211)
Cash flow hedge (gains)/losses transferred to the income statement	(39)	106	14
Tax on the above	1	21	62
At 31 December	(59)	(51)	(11)
Fair value through other comprehensive income reserve
At 1 January	2	2	(2)
(Losses)/gains on equity investments	(24)	—	4
At 31 December	(22)	2	2
Cost of hedging reserve
At 1 January	(17)	(21)	(3)
Cost of hedging deferred to reserves during the year	4	4	(18)
Transfer of cost of hedging to the income statement	1	–	–
At 31 December	(12)	(17)	(21)
Other reserves(c)
At 1 January	11,554	11,582	11,628
Own shares purchased from Rio Tinto Limited shareholders to satisfy share awards	(78)	(84)	(95)
Employee share options: value of services	62	56	55
Deferred tax on share options	4	—	(6)
At 31 December	11,542	11,554	11,582
Foreign currency translation reserve(d)
At 1 January	(3,784)	(1,627)	162
Parent and subsidiaries' currency translation and exchange adjustments	598	(2,235)	(1,777)
Equity accounted units currency translation adjustments	14	(27)	(12)
Currency translation reclassified on disposal(e)	—	105	—
At 31 December	(3,172)	(3,784)	(1,627)
Total other reserves per balance sheet	8,328	7,755	9,976

Retained earnings(f)
At 1 January as previously reported(g)	34,511	33,320	26,792
Adjustment for transition to new accounting pronouncements(h)	509	537	516
Revised 1 January	35,020	33,857	27,308
Parent and subsidiaries' profit for the year	9,385	11,817	20,073
Equity accounted units' profit after tax for the year	673	575	1,042
Re-measurement (losses)/gains on pension and post-retirement healthcare plans(i)	(459)	568	1,015
Tax relating to components of other comprehensive income	151	(118)	(297)
Total comprehensive income for the year	9,750	12,842	21,833
Dividends paid	(6,466)	(11,716)	(15,385)
Change in equity interest held by Rio Tinto(j)	(13)	701	76
Own shares purchased/treasury shares reissued for share awards and other movements	(17)	(16)	(18)
Equity issued to holders of non-controlling interests(j)	—	(711)	—
Employee share options and other IFRS 2 charges taken to the income statement	76	63	60
At 31 December	38,350	35,020	33,874

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)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.

(c)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.

(d)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.

(e)The sale of our Roughrider undeveloped project in 2022 led to the recycling of currency translation reserve losses of US$105 million relating to the entity that owns the project.

(f)Retained earnings and movements in reserves of subsidiaries include those arising from the Group’s share of joint operations.

(g)In 2022, the opening balance includes a US$17 million adjustment for the prospective adoption of Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”, as reported

in the prior year financial statements.

(h)The impact of adopting the narrow-scope amendments to IAS 12. Refer to page 166 for details.

(i)There were US$3 million re-measurement gains relating to equity accounted units in 2023 (2022: US$5 million gains, 2021: US$12 million gains).

(j)In 2022, the amount relates to forgiveness by Turquoise Hill Resources Ltd of the accrued interest and funding balances from Erdenes Oyu Tolgoi and the purchase of the non-controlling interest

of Turquoise Hill Resources Ltd.

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 233

Other notes

36 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, residual consideration payable to Turquoise Hill Resources

shareholders that dissented to the 2022 transaction, onerous contracts and claims for past royalties.

	2023 US$m	2022 US$m
Opening balance at 1 January as previously reported	1,298	1,019
Adjustment on currency translation	14	(43)
Adjustments to mining properties/right-of-use assets:
– decrease to existing and new provisions	—	4
Charged/(credited) to profit:
– increases to existing and new provisions	214	365
– change in discount rate	(18)	—
– unused amounts reversed	(31)	(66)
– exchange gain on provisions	(1)	—
– amortisation of discount	22	2
Utilised in year	(104)	(176)
Transfers and other movements(a)	(23)	193
Closing balance at 31 December	1,371	1,298
Balance sheet analysis:
Current	637	554
Non-current	734	744
Total	1,371	1,298

(a)In 2022, Transfers and other movements included US$211 million for additional consideration to be paid to the dissenting shareholders of the Turquoise Hill Resources transaction. It represented

the difference between the initial consideration of C$34.4 per share paid and C$43 per share paid to all other shareholders, with the final amount and timing to be determined by dissent

proceedings. At 31 December 2023 those dissent proceedings remained ongoing and the provision is unchanged.

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 (for example, 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. We do not believe that any of these

proceedings will have a materially adverse effect on our financial position.

Contingent liabilities (subsidiaries, joint operations, joint ventures and associates)

	2023 US$m	2022 US$m
Contingent liabilities, indemnities and other performance guarantees(a)	435	498

(a)There were no material contingent liabilities arising in relation to the Group’s joint ventures and associates.

Financial statements continued

Notes to the 2023 financial statements

234 Annual Report on Form 20-F 2023 | riotinto.com

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

On 6 March 2023, we resolved a previously self-disclosed investigation by the SEC into certain contractual payments totalling US$10.5 million made to a consultant who had provided advisory services in 2011, relating to the Simandou project in the Republic of Guinea. Without admitting to or denying the SEC’s findings, Rio Tinto paid a US$15 million civil penalty for violations of the books and records and internal controls provisions of the Foreign Corrupt Practices Act. In August 2023, the UK Serious Fraud Office announced that it was not in the public interest to proceed with a prosecution and closed its case. It also announced that the Australian Federal Police maintains a live investigation into the matter. Rio Tinto continues to co-operate fully with relevant authorities in connection with open investigations. In August 2018, the court dismissed a related US class action commenced on behalf of securities holders.  No provision has been recognised for other related investigations.

At 31 December 2023, the outcome of this investigation remains uncertain, but it could ultimately expose the Group to material financial cost. We

believe this case is unwarranted and will defend the allegation vigorously. A dedicated Board committee continues to monitor the progress of this

matter, as appropriate.

In November 2023, we reached a court approved settlement with the SEC in relation to Rio Tinto’s disclosures and timing of the impairment of Rio

Tinto Coal Mozambique (RTCM), which was reflected in Rio Tinto’s 2012 year-end accounts. This was previously disclosed as a contingent liability -

not quantifiable at 31 December 2022. Without admitting to or denying the SEC’s allegations related to its books, records and reporting

requirements, Rio Tinto paid a US$28 million penalty and agreed to retain an independent consultant to advise on its current policies, procedures,

and controls related to impairment, disclosures and project risk. Rio Tinto settled claims brought by the Australian Securities and Investment

Commission in 2022 and the United Kingdom's Financial Conduct Authority in 2017 relating to the same RTCM impairment. The U.S. Court who

approved the SEC settlement previously dismissed a related private putative securities class action in 2019. An appeals court affirmed the dismissal.

Former Chief Executive Tom Albanese has also reached a settlement with the SEC and will pay a US$50,000 penalty, without admitting to or

denying the allegations related to books and records and internal controls.

With this settlement, all investigations of Rio Tinto regarding this matter have been finalised.

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 and restoration provisions are not recognised for those operations that have no known restrictions on their lives as the date of closure

cannot be reliably estimated. This applies primarily to 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 and restoration provisions are recognised at these operations for separately

identifiable closure activities which can be reasonably estimated, such as the demolition and removal of fixed structures after a pre-determined

period. 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.

Capital commitments

Our capital commitments includes:

–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.

On a legally enforceable basis, capital commitments would be approximately US$1.4 billion (2022: US$1.0 billion) as many of the contracts relating

to the Group’s projects have various cancellation clauses.

The Group's share of joint venture capital commitments was US$227 million at 31 December 2023 (2022: US$15 million).

Impact of climate change on our business - decarbonisation capital commitments

Capital commitments do not include the estimated incremental capital expenditure relating to decarbonisation projects of US$5 billion to US$6

billion between 2022 and 2030 unless otherwise contractually committed (revised from US$7.5 billion in prior year). Included in capital

commitments in 2023 are contractually committed decarbonisation capital commitments of US$123 million (US$8 million in 2022), inclusive of

Amrun power purchase agreement, which is a treated as a lease, which has not yet commenced (disclosed in note 21).

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 235

37 Contingencies and commitments continued

	2023 US$m	2022 US$m
Capital commitments excluding the Group's share of joint venture capital commitments
Within 1 year	3,662	2,313
Between 1 and 3 years	597	866
Between 3 and 5 years	27	86
After 5 years	99	89
Total	4,385	3,354
Group's share of joint venture capital commitments
Within 1 year	128	15
Between 1 and 3 years	99	—
Total	227	15

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 2023, a total of US$173 million (2022: US$nil) of such expenditure is estimated to be

incurred over the next 25 years, out of which US$10 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 or

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 2023, Minera Escondida Ltda held an undrawn shareholder line of credit for US$225 million (Rio Tinto share) (2022:

US$225 million). The current facility has been extended during the year and will now mature in September 2024.

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.

The aggregate amount of future payment commitments under purchase obligations outstanding at 31 December is shown in the table below.

	2023 US$m	2022 US$m
Within 1 year	2,927	3,618
Between 1 and 2 years	1,663	2,091
Between 2 and 3 years	1,496	1,632
Between 3 and 4 years	1,147	1,309
Between 4 and 5 years	948	907
After 5 years	6,365	6,574
Total	14,546	16,131

Guarantees by parent companies

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$6.2 billion (2022: US$4.4 billion) Rio Tinto Finance (USA) Limited and Rio Tinto Finance (USA) plc bonds

with maturity dates up to 2053; and US$1.1 billion (2022: US$1.0 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 (2022: 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. During the year, a wholly owned subsidiary of Rio Tinto plc became a lender under the project finance facility ranking pari passu with the

external lenders.

At 31 December 2023, a total of US$4.7 billion of project finance debt was outstanding under this facility of which US$3.9 billion is owed to external

third party lenders (2022: US$3.9 billion). 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 has been raised for development of the

underground mine and the CSU will terminate on the completion of the underground mine according to a set of completion tests set out in the

project finance facility. The CSU contains a carve-out for certain political risk events.

Financial statements continued

Notes to the 2023 financial statements

236 Annual Report on Form 20-F 2023 | riotinto.com

38 Auditors’ remuneration

Group auditors’ remuneration(a)

	2023 US$m	2022 US$m	2021 US$m
Audit of the Group	19.1	17.3	13.7
Audit of subsidiaries	7.5	8.4	7.5
Total audit	26.6	25.7	21.2
Audit-related assurance service	1.1	1.0	1.0
Other assurance services(b)	3.0	2.3	2.7
Total assurance services	4.1	3.3	3.7
Tax compliance	—	—	—
Other non-audit services not covered above	0.1	0.3	0.2
Total non-audit services	4.2	3.6	3.9
Total Group auditors’ remuneration	30.8	29.3	25.1
Audit fees payable to other accounting firms
Audit of the financial statements of the Group’s subsidiaries	0.3	0.2	0.3
Fees in respect of pension scheme audits	0.1	0.1	0.1
Total audit fees payable to other accounting firms	0.4	0.3	0.4

(a)The remuneration payable to KPMG, the Group auditors, is approved by the Audit and Risk 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)Other assurance services relates to the review of non-statutory financial information including sustainability reporting.

Under SEC regulations, the remuneration to KPMG firms and associates of US$30.8 million  (2022: US$29.3 million; 2021: US$25.1 million) is

required to be analysed as follows: audit fees US$27.7 million (2022: US$27.0 million; 2021: US$22.6 million), audit-related fees US$3.0 million 

(2022: US$2.0 million; 2021: US$2.3 million), Tax fees US$nil (2022: US$nil; 2021: US$nil) and all other fees US$0.1 million (2022: US$0.3 million;

2021: US$0.2 million)

39 Events after the balance sheet date

On 1 February 2024 the Federal Court of Australia dismissed the proceeding filed by Rusal entities in 2022 over access to alumina supply from the

QAL refinery, following the imposition of the Australian sanctions against Russia, and QAL’s actions to invoke step-in rights. The Court upheld that

the Australian sanctions restrict Rio Tinto from supplying bauxite to Rusal entities and restrict QAL from processing bauxite for Rusal entities and

supplying it with alumina. The Rusal entities can file an appeal of the decision by 29 February 2024.

On 15 January 2024 we announced that Dampier Salt had entered into a sales agreement for the Lake MacLeod salt and gypsum operation in

Carnavon, Western Australia, with privately-owned salt company Leichhardt Industrials Group for A$375 million (US$251 million).

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. The assessment is

ongoing in relation to the amendments listed below, but no material impact has been identified to date:

–Classification of liabilities as current or non-current and non-current liabilities with covenants (Amendments to IAS 1 “Presentation of Financial

Statements”, mandatory in 2024);

–Lease liability in a sale and leaseback (Amendments to IFRS 16 “Leases”, mandatory in 2024);

–Supplier finance arrangements (Amendments to IAS 7 “Cash Flow Statement” and IFRS 7 “Financial Instruments: Disclosures”, mandatory in

2024); and

–Lack of exchangeability (Amendments to IAS 21 “The Effects Of Changes In Foreign Exchange Rates”, mandatory in 2025).

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 237

Pages 238 to 266 have been intentionally omitted.

To the Stockholders and Board of Directors of Rio Tinto plc and Rio Tinto Limited:

Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting

We have audited the accompanying Group 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, 2023 and 2022, the related Group Income

Statement, Group Statement of Comprehensive Income, Group Cash Flow Statement, and Group Statement of

Changes in Equity f or each of the years in the three-year period ended December 31, 2023, and the related notes

(collectively, the consolidated financial statements). We also have audited the Group’s internal control over financial

reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013)

issued by the Committee of Sponsoring Organizations of the Treadway Commission.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the

financial position of the Group as of December 31, 2023, and 2022, and the results of its operations and its cash flows

for each of the years in the three-year period ended December 31, 2023, in conformity with International Financial

Reporting Standards as issued by the International Accounting Standards Board. Also, in our opinion, the Group

maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based

on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring

Organizations of the Treadway Commission.

Basis for Opinions

The Group’s management is responsible for these consolidated financial statements, for maintaining effective internal

control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting,

included in Management’s report on internal control over financial reporting. Our responsibility is to express an opinion

on the Group’s consolidated financial statements and an opinion on the Group’s internal control over financial

reporting based on our audits. We are public accounting firms registered with the Public Company Accounting

Oversight Board (United States) (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 audits in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of

material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was

maintained in all material respects.

Our audits of the consolidated financial statements 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. 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

audits also included performing such other procedures as we considered necessary in the circumstances. We believe

that our audits provide a reasonable basis for our opinions.

Report of Independent Registered Public Accounting Firms

Annual Report on Form 20-F 2023 | riotinto.com 267

Definition and Limitations of Internal Control Over Financial Reporting

A company’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 company’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 company; (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 company are being made only in accordance with authorizations

of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely

detection of unauthorized acquisition, use, or disposition of the company’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.

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 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$17,150m as of December 31, 2023, a portion of

which related to Iron Ore (‘Pilbara’).

We identified the evaluation of provisions for close-down and restoration related to Pilbara as a critical audit matter.

Significant judgement was required to evaluate the Group’s assumptions related to 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’).

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.

•We compared a selection of previous forecast cost assumptions to actual costs to assess the Group’s ability to

accurately forecast closure costs.

•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, we involved mine closure professionals with specialised skills and knowledge who assisted in:

■inspecting 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 work planned to be undertaken,

including challenging assumptions relating to the nature and cost of future rehabilitation activities; and

■evaluating the methodology applied by the Group’s experts and assessing certain assumptions

regarding the forecast costs of closure activities based on their experience and familiarity with

applicable legislative requirements and industry practice and the Group’s closure commitments.

Report of Independent Registered Public Accounting Firms continued

268 Annual Report on Form 20-F 2023 | riotinto.com

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, 2023, the Group has

US$66,468m 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 long-term

commodity prices, in addition to the ramp up of underground mine production as a key development and operational

milestone for the Oyu Tolgoi CGU, 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 assessed the impact of the underground progress in the period by comparing the Group’s assessment of timing,

production ramp up and capital costs with the equivalent assumptions in the 2022 indicators of impairment or

impairment reversal assessment. We also inquired of operational management to corroborate certain changes in

assumptions.

We also involved valuation professionals with specialised skills and knowledge who assisted in assessing the forecast

long-term commodity prices used in the Group’s assessments, by comparing them to, and considering changes in,

market observable price forecasts.

We have served as the Company’s auditors since 2020.

/s/ KPMG LLP	/s/ KPMG Perth,
London, United Kingdom	Australia
London, United Kingdom February 23, 2024	Perth, Australia February 23, 2024
In respect of the Board of directors and shareholders for Rio Tinto plc	In respect of the Board of directors and shareholders for Rio Tinto Limited

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 269

Pages 270 to 285 have been intentionally omitted.

		Segmental revenue(c) for the year ended 31 December			Underlying EBITDA(c) for the year ended 31 December			Depreciation and amortisation for the year ended 31 December			Underlying earnings(c) for the year ended 31 December
	Rio Tinto interest %	2023 US$m	2022 US$m Adjusted(a)	2021 US$m Adjusted(a)	2023 US$m	2022 US$m Adjusted(a)	2021 US$m Adjusted(a)	2023 US$m	2022 US$m Adjusted(a)	2021 US$m Adjusted(a)	2023 US$m	2022 US$m Restated(a)(b)	2021 US$m Restated(a)(b)
Iron Ore
Pilbara	(d)	30,867	29,313	39,111	19,828	18,474	27,837	2,128	2,011	2,003	11,945	11,106	17,568
Dampier Salt	68.4	422	352	298	120	56	39	21	19	20	49	19	10
Evaluation projects/other	(e)	2,701	2,711	2,147	57	33	(81)	—	—	—	(89)	53	(79)
Intra-segment	(e)	(1,741)	(1,470)	(1,974)	(31)	49	(203)	—	—	—	(23)	35	(152)
Total Iron Ore Segment		32,249	30,906	39,582	19,974	18,612	27,592	2,149	2,030	2,023	11,882	11,213	17,347
Aluminium
Bauxite		2,390	2,396	2,203	662	618	619	373	361	328	141	101	187
Alumina		2,882	3,215	2,743	136	289	569	170	200	165	(56)	18	307
North American Aluminium (m)		6,581	7,561	6,706	1,480	2,426	2,592	710	704	694	566	1,266	1,454
Pacific Aluminium		2,613	3,102	2,947	169	497	693	165	135	103	18	261	396
Intra-segment and other		(2,953)	(3,138)	(2,718)	(11)	12	14	—	—	(1)	(15)	(8)	192
Integrated operations		11,513	13,136	11,881	2,436	3,842	4,487	1,418	1,400	1,289	654	1,638	2,536
Other product group items		772	973	814	9	25	26	—	—	—	5	15	17
Product group operations		12,285	14,109	12,695	2,445	3,867	4,513	1,418	1,400	1,289	659	1,653	2,553
Evaluation projects/other		—	—	—	(163)	(195)	(131)	—	—	—	(121)	(149)	(101)
Total Aluminium Segment		12,285	14,109	12,695	2,282	3,672	4,382	1,418	1,400	1,289	538	1,504	2,452
Copper
Kennecott	100.0	1,430	1,923	2,528	178	857	1,142	500	624	538	(328)	12	531
Escondida	30.0	2,756	2,628	2,935	1,619	1,641	2,013	355	330	348	684	798	1,003
Oyu Tolgoi	(f)	1,625	1,424	1,971	639	449	1,213	476	194	213	161	130	326
Product group operations		5,811	5,975	7,434	2,436	2,947	4,368	1,331	1,148	1,099	517	940	1,860
Evaluation projects/other(a)		867	724	393	(532)	(382)	(341)	5	5	4	(384)	(253)	(219)
Total Copper Segment		6,678	6,699	7,827	1,904	2,565	4,027	1,336	1,153	1,103	133	687	1,641
Minerals
Iron Ore Company of Canada	58.7	2,500	2,818	3,526	942	1,381	2,026	214	207	197	293	475	734
Rio Tinto Iron & Titanium	(g)	2,172	2,366	1,791	582	799	470	222	224	213	221	374	176
Rio Tinto Borates	100.0	802	742	592	212	155	89	58	54	51	125	80	32
Diamonds	(h)	444	816	501	44	330	180	35	45	12	26	151	99
Product group operations		5,918	6,742	6,410	1,780	2,665	2,765	529	530	473	665	1,080	1,041
Evaluation projects/other		16	12	71	(366)	(246)	(162)	1	1	1	(353)	(226)	(153)
Total Minerals Segment		5,934	6,754	6,481	1,414	2,419	2,603	530	531	474	312	854	888
Reportable segments total		57,146	58,468	66,585	25,574	27,268	38,604	5,433	5,114	4,889	12,865	14,258	22,328
Simandou iron ore project	(i)	—	—	—	(539)	(189)	(58)	—	—	—	(160)	(145)	(43)
Other operations	(j)	142	192	251	(39)	(16)	(28)	290	272	199	(250)	(347)	(88)
Inter-segment transactions		(231)	(256)	(268)	8	24	42				4	26	19
Central pension costs, share-based payments, insurance and derivatives					168	377	110				48	374	133
Restructuring, project and one-off costs					(190)	(173)	(80)				(112)	(85)	(53)
Central costs					(990)	(766)	(613)	95	94	106	(898)	(651)	(585)
Central exploration and evaluation					(100)	(253)	(257)				(60)	(209)	(215)
Net interest											318	138	(95)
Underlying EBITDA/earnings					23,892	26,272	37,720				11,755	13,359	21,401
Items excluded from underlying EBITDA/earnings					(1,257)	269	(811)				(1,697)	(967)	(286)
Reconciliation to Group income statement
Share of equity accounted unit sales and intra- subsidiary/equity accounted unit sales		(3,016)	(2,850)	(3,073)
Impairment charges					(936)	(52)	(269)
Depreciation and amortisation in subsidiaries excluding capitalised depreciation					(4,976)	(4,871)	(4,525)
Depreciation and amortisation in equity accounted units					(484)	(470)	(497)	(484)	(470)	(497)
Taxation and finance items in equity accounted units					(741)	(640)	(759)
Finance items					(1,713)	(1,846)	(26)
Consolidated sales revenue/profit before taxation/depreciation and amortisation/net earnings		54,041	55,554	63,495	13,785	18,662	30,833	5,334	5,010	4,697	10,058	12,392	21,115

Rio Tinto Financial Information by Business Unit

Rio Tinto Financial Information by Business

Unit

286 Annual Report on Form 20-F 2023 | riotinto.com

		Capital expenditure(c)(k) for the year ended 31 December			Operating assets(l) as at 31 December			Employees for the year ended 31 December
	Rio Tinto interest %	2023 US$m	2022 US$m Adjusted(a)	2021 US$m Adjusted(a)	2023 US$m	2022 US$m Restated(a)(b)	2021 US$m Restated(a)(b)	2023	2022 Adjusted(a)	2021 Adjusted(a)
Iron Ore
Pilbara	(d)	2,563	2,906	3,928	17,959	17,785	17,113	15,181	14,319	12,810
Dampier Salt	68.4	25	34	19	146	153	159	430	436	388
Evaluation projects/other	(e)	—	—	—	780	835	1,283	22	20	16
Intra-segment	(e)	—	—	—	(243)	(220)	(255)	—	—	—
Total Iron Ore Segment		2,588	2,940	3,947	18,642	18,553	18,300	15,633	14,775	13,214
Aluminium
Bauxite		159	161	155	2,649	2,458	2,591	3,008	2,966	2,972
Alumina		325	356	362	1,315	2,400	2,287	2,600	2,626	2,463
North American Aluminium (m)		748	752	690	10,582	9,343	9,734	6,886	6,693	6,280
Pacific Aluminium		99	108	93	340	159	218	2,563	2,480	2,450
Intra-segment and other		—	—	—	997	629	839	256	234	185
Total Aluminium Segment		1,331	1,377	1,300	15,883	14,989	15,669	15,313	14,999	14,350
Copper
Kennecott	100.0	735	563	411	2,606	2,027	2,513	2,411	2,176	2,051
Escondida	30.0	—	—	—	2,844	2,792	2,515	1,203	1,205	1,166
Oyu Tolgoi	(f)	1,230	1,056	911	15,334	13,479	9,000	4,515	4,060	3,508
Product group operations		1,965	1,619	1,322	20,784	18,298	14,028	8,129	7,441	6,725
Evaluation projects/other (a)		11	3	6	262	165	210	333	245	228
Total Copper Segment		1,976	1,622	1,328	21,046	18,463	14,238	8,462	7,686	6,953
Minerals
Iron Ore Company of Canada	58.7	364	366	377	1,347	1,147	1,077	3,206	3,075	2,877
Rio Tinto Iron & Titanium	(g)	240	217	184	3,386	3,351	3,367	4,415	4,273	4,129
Rio Tinto Borates	100.0	49	34	43	502	496	491	1,013	1,009	978
Diamonds	(h)	66	48	25	29	(84)	4	871	853	646
Product group operations		719	665	629	5,264	4,910	4,939	9,505	9,210	8,630
Evaluation projects/other		27	14	15	873	874	43	328	224	136
Total Minerals Segment		746	679	644	6,137	5,784	4,982	9,833	9,434	8,766
Reportable segments total		6,641	6,618	7,219	61,708	57,789	53,189	49,241	46,894	43,283
Simandou iron ore project	(i)	266	—	—	738	(22)	13	571	343	101
Other operations	(j)	57	53	(13)	(2,634)	(1,850)	(1,489)	665	630	297
Inter-segment transactions					20	12	(12)
Other items		113	79	117	(1,015)	(1,107)	(1,330)	6,697	5,859	5,664
Total		7,077	6,750	7,323	58,817	54,822	50,371	57,174	53,726	49,345
Add back: Proceeds from disposal of property, plant and equipment		9	—	61
Total purchases of property, plant & equipment and intangibles as per cash flow statement		7,086	6,750	7,384
Add: Net (debt)/cash					(4,231)	(4,188)	1,576
Equity attributable to owners of Rio Tinto					54,586	50,634	51,947
Total employees								57,174	53,726	49,345

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 287

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 disclosures in this note include certain non-IFRS financial measures

(non-IFRS measures). For more information on the non-IFRS measures

used by the Group, including definitions and calculations, refer to

section entitled alternative performance measures (pages 289 to 294).

(a)The financial information by business unit has been adjusted to

reflect a change in management responsibility for the Simandou iron

ore project from Copper to the Chief Technical Officer. As a result,

we have moved Simandou outside of reportable segments and

accordingly adjusted prior period comparatives.

(b)Underlying earnings for the year ended 31 December 2022 and

2021 and operating assets as at 31 December 2022 and 2021 have

been restated for the impact of narrow-scope amendments to IAS

12 Refer to page 166 for details.

(c)Segmental revenue, Underlying EBITDA and Capital expenditure

are defined and calculated in note 1 from pages 173 to 175.

Underlying Earnings is defined and calculated within the Alternative

performance measures section on pages 290 and 291. 

(d)Pilbara represents the Group’s 100% holding in Hamersley, 50%

holding in Hope Downs Joint Venture, 54% holding in Western

Range Joint Venture and 65% holding in Robe River Iron

Associates. The Group’s net beneficial interest in Robe River Iron

Associates is 53%, as 30% is held through a 60% owned subsidiary

and 35% is held through a 100% owned subsidiary.

(e)Segmental revenue, Underlying EBITDA, Underlying earnings and

Operating assets within Evaluation projects/other include activities

relating to the shipment and blending of Pilbara and Iron Ore

Company of Canada (IOC) iron ore inventories held portside in

China and sold to domestic customers. Transactions between

Pilbara and our portside trading business are eliminated through the

Iron Ore “intra-segment” line and transactions between IOC and the

portside trading business are eliminated through “inter-segment

transactions”.

(f)Until 16 December 2022, our interest in Oyu Tolgoi was held

indirectly through our 50.8% investment in Turquoise Hill Resources

Ltd (TRQ), where TRQ’s principal asset was its 66% investment in

Oyu Tolgoi LLC, which owned the Oyu Tolgoi copper-gold mine.

Following the purchase of TRQ we now directly hold a 66%

investment in Oyu Tolgoi LLC.

(g)Includes our interests in Rio Tinto Iron and Titanium Quebec

Operations (100%), QIT Madagascar Minerals (QMM, 80%) and

Richards Bay Minerals (attributable interest of 74%).

(h)Includes our interests in Argyle (100%) residual operations which

relate to the sale of remaining inventory and Diavik. Until 18

November 2021 we recognised our 60% share of assets, revenue

and expenses relating to the Diavik joint venture. Liabilities were

recognised according to Diavik Diamond Mine Inc’s contractual

obligations at 100%, with a corresponding 40% receivable or

contingent asset representing the co-owner’s share where

applicable. Post acquisition, we now consolidate (100%) of the

Diavik.

(i)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 operates the Simandou

mining project in Guinea. As at 31 December 2023, Simfer Jersey

also owns 100% of Simfer InfraCo Guinée S.A., a company

incorporated in Guinea, which will deliver Simfer’s scope of the co-

developed rail and port infrastructure. The Group therefore has a

45.05% indirect interest in Simfer S.A. and a 53% indirect interest in

Simfer InfraCo Guinée S.A. These entities are consolidated as

subsidiaries and together referred to as the Simandou iron ore

project.

(j)Other operations includes our 86% 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. From 16 June 2022, Commercial Treasury and

related central costs are reported as part of ‘Other operations’

instead of ‘Other items’ in previous periods.

(k)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

Group 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.

(l)Operating assets of the Group represents equity attributable to Rio

Tinto adjusted for net (debt)/cash. 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)/cash 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

(i.e. inclusive of such companies’ debt and amounts due to or from

Rio Tinto Group companies).

(m)North American Aluminium comprises our reporting unit formerly

known as Primary Metal and from 1 December 2023 our 50%

interest in Matalco which focuses on recycling of aluminium. The

operations are principally located in Canada and USA, however this

reporting unit also includes our interests in ISAL (Iceland) and Sohar

(Oman).

Rio Tinto Financial Information by Business Unit continued

Notes to Financial Information by Business

Unit

288 Annual Report on Form 20-F 2023 | riotinto.com

The Group presents certain non-IFRS financial 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 2020 and 2019 can be found in the section APM of our 2020

Annual Report. Reconciliation of underlying return on capital employed and Net (debt)/cash for the year 2021 can be found in our 2021 Annual

Report.

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 in proportion to our equity

interest (after adjusting for sales to/from subsidiaries). The reconciliation can be found in “Our financial performance” on page 173.

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 175.

Underlying EBITDA margin

Underlying EBITDA margin is defined as Group underlying EBITDA divided by the aggregate of consolidated sales revenue and our share of equity

account unit sales after eliminations.

	2023 US$m	2022 US$m	2021 US$m
Underlying EBITDA	23,892	26,272	37,720
Consolidated sales revenue	54,041	55,554	63,495
Share of equity accounted unit sales and inter-subsidiary/equity accounted unit sales eliminations	3,016	2,850	3,073
	57,057	58,404	66,568
Underlying EBITDA margin	42%	45%	57%

Pilbara underlying FOB EBITDA margin

The Pilbara underlying free on board (FOB) EBITDA margin is defined as Pilbara underlying EBITDA divided by Pilbara segmental revenue,

excluding freight revenue.

	2023 US$m	2022 US$m	2021 US$m
Pilbara
Underlying EBITDA	19,828	18,474	27,837
Pilbara segmental revenue	30,867	29,313	39,111
Less: Freight revenue	(2,098)	(2,206)	(2,707)
Pilbara segmental revenue, excluding freight revenue	28,769	27,107	36,404
Pilbara underlying FOB EBITDA margin	69%	68%	76%

Financial statements

Alternative Performance Measures

Annual Report on Form 20-F 2023 | riotinto.com 289

Underlying EBITDA margin from Aluminium integrated operations

Underlying EBITDA margin from integrated operations is defined as underlying EBITDA divided by segmental revenue.

	2023 US$m	2022 US$m	2021 US$m
Aluminium
Underlying EBITDA - integrated operations	2,436	3,842	4,487
Segmental revenue - integrated operations	11,513	13,136	11,881
Underlying EBITDA margin from integrated operations	21%	29%	38%

Underlying EBITDA margin (product group operations)

Underlying EBITDA margin (product group operations) is defined as underlying EBITDA divided by segmental revenue.

	2023 US$m	2022 US$m	2021 US$m
Copper
Underlying EBITDA - product group operations	2,436	2,947	4,368
Segmental revenue - product group operations	5,811	5,975	7,434
Underlying EBITDA margin - product group operations	42%	49%	59%

	2023 US$m	2022 US$m	2021 US$m
Minerals
Underlying EBITDA - product group operations	1,780	2,665	2,765
Segmental revenue - product group operations	5,918	6,742	6,410
Underlying EBITDA margin - product group operations	30%	40%	43%

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 year irrespective of materiality:

–net gains/(losses) on disposal of interests in subsidiaries;

–impairment charges and reversals;

–profit/(loss) after tax from discontinued operations;

–exchange and derivative gains and losses. This exclusion includes exchange gains/(losses) on external net 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; and

–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.

Exclusions from underlying earnings relating to equity accounted units are stated after tax and included in the column “Pre-tax”.

Alternative Performance Measures continued

Alternative Performance Measures

290 Annual Report on Form 20-F 2023 | riotinto.com

	Pre-tax 2023 US$m	Taxation 2023 US$m	Non- controlling interests 2023 US$m	Net amount 2023 US$m	Net amount 2022 US$m Restated(a)	Net amount 2021 US$m Restated(a)
Net earnings	13,785	(3,832)	105	10,058	12,392	21,115
Items excluded from underlying earnings
Impairment charges net of reversals (note 4)	936	(499)	215	652	52	197
Foreign exchange and derivative (losses)/gains:
– Exchange losses/(gains) on external net debt, intragroup balances and derivatives(b)	253	(12)	2	243	(216)	(726)
– Losses on currency and interest rate derivatives not qualifying for hedge accounting(c)	58	30	(1)	87	373	127
– (Gains)/losses on embedded commodity derivatives not qualifying for hedge accounting(d)	(21)	6	(8)	(23)	(20)	53
Change in closure estimates (non-operating and fully impaired sites)(e)	1,272	(51)	(119)	1,102	178	971
Deferred tax arising on internal sale of assets in Canadian operations(f)	—	(364)	—	(364)	—	—
Gains recognised by Kitimat relating to LNG Canada’s project(g)	—	—	—	—	(106)	(336)
Loss on disposal of interest in subsidiary (note 4)	—	—	—	—	105	—
Gain on sale of the Cortez royalty(h)	—	—	—	—	(331)	—
Write-off of Federal deferred tax assets in the United States(i)	—	—	—	—	932	—
Total excluded from underlying earnings	2,498	(890)	89	1,697	967	286
Underlying earnings	16,283	(4,722)	194	11,755	13,359	21,401

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Exchange losses on external net debt and intragroup balances includes post-tax foreign exchange losses on net debt of US$316 million offset by post-tax gains of US$73 million on intragroup

balances, primarily as a result of the Australian dollar strengthening against the US dollar. In 2022, exchange gains on external net debt and intragroup balances included post-tax foreign

exchange losses on net debt of US$262 million offset by post-tax gains of US$478 million on intragroup balances, primarily as a result of the Australian dollar weakening against the US dollar

during the year. In 2021, exchange gains on external net debt and intragroup balances included post-tax foreign exchange gains on intragroup balances of US$913 million partially offset by post-

tax losses of US$187 million on external net debt, primarily as a result of the weakening Australian dollar against the US dollar.

(c)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.

(d)Valuation changes on derivatives, embedded in commercial contracts that are ineligible for hedge accounting but for which there will be an offsetting change in future Group earnings. Mark-to-

market movements on commodity derivatives entered into with the commercial objective of achieving spot pricing for the underlying transaction at the date of settlement are included in

underlying earnings.

(e)In 2023, the charge includes US$0.9 billion related to the closure provision update announced by Energy Resources of Australia on 12 December 2023 together with the update included in their

half year results for the period ended 30 June 2023, published in August. 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. The other closure study updates were at legacy sites managed by our central closure team as well as an update at Yarwun

alumina refinery which was expensed due to the impairment earlier in the year. In 2022, the charge related to re-estimates of underlying closure cash flows for legacy sites where the

environmental damage preceded ownership by Rio Tinto. In 2021, the closure provision increase excluded from underlying earnings was attributable to study updates at Energy Resources of

Australia, Diavik, Gove refinery, and a number of the Group's legacy sites where the environmental damage preceded ownership by Rio Tinto.

(f)During the year 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 is recognised.

(g)During 2022, LNG Canada elected to terminate their option to purchase additional land and facilities for expansion of their operations at Kitimat, Canada. The resulting gain was excluded from

underlying earnings consistent with prior years as it was part of a series of transactions that together were material. On 3 December 2021, we gained control over a new wharf at Kitimat, Canada

that was built and paid for by LNG Canada. The gain on recognition was excluded from underlying earnings on the grounds of individual magnitude and consistency with the associated

impairment charge. Refer to note 4 for details.

(h)On 2 August 2022, we completed the sale of a gross production royalty which was retained following the disposal of the Cortez Complex in 2008. The gain recognised on sale of the royalty was

excluded from underlying earnings on the grounds of individual magnitude.

(i)In 2022, we wrote down our deferred tax assets in the United States following the introduction of the Corporate Alternative Minimum Tax regime. Refer to note 10 for details. The amount has

been restated from US$820 million as previously reported to US$932 million to reflect the adoption of narrow-scope amendments to IAS 12 as referred to in footnote (a).

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 291

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.

	2023 (cents)	2022 (cents) Restated(a)	2021  (cents) Restated(a)
Basic earnings per ordinary share	620.3	765.0	1,304.7
Items excluded from underlying earnings per share(b)	104.7	59.7	17.7
Basic underlying earnings per ordinary share	725.0	824.7	1,322.4

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

(b)Calculation of items excluded from underlying earnings per share:

	2023	2022 Restated(a)	2021 Restated(a)
Items excluded from underlying earnings (US$m) (refer to pages 290 and 291)	1,697.0	967.0	286.0
Weighted average number of shares (millions)	1,621.4	1,619.8	1,618.4
Items excluded from underlying earnings per share (cents)	104.7	59.7	17.7

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

We have provided basic underlying earnings per share as this allows the comparability of financial performance adjusted to exclude items that 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.

	2023 US$m	2022 US$m
Profit before taxation	13,785	18,662
Add back
Finance income	(536)	(179)
Finance costs	967	335
Share of profit after tax of equity accounted units	(675)	(777)
Items excluded from underlying earnings	2,498	(49)
Add: Dividends from equity accounted units	610	879
Calculated earnings	16,649	18,871
Finance income	536	179
Finance costs	(967)	(335)
Add: Amounts capitalised	(279)	(416)
Total net finance costs before capitalisation	(710)	(572)
Interest cover	23	33

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.

	2023 (cents)	2022 (cents) Restated(a)
Interim dividend declared per share	177.0	267.0
Final dividend declared per share	258.0	225.0
Total dividend declared per share for the year	435.0	492.0
Underlying earnings per share	725.0	824.7
Payout ratio	60%	60%

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

Alternative Performance Measures continued

Alternative Performance Measures

292 Annual Report on Form 20-F 2023 | riotinto.com

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 grow the business.

Rio Tinto share of capital investment

Rio Tinto’s share of capital investment represents our economic investment in capital projects. This measure was introduced in 2022 to better

represent the Group’s share of funding for capital projects which are jointly funded with other shareholders and which may differ from the

consolidated basis included in the Capital expenditure APM. This better reflects our approach to capital allocation.

The measure is based upon the Capital expenditure APM, 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. 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 Equity Accounted Unit.

	2023 US$m	2022 US$m	2021 US$m
Purchase of property, plant and equipment and intangible assets	7,086	6,750	7,384
Less: Equity or shareholder loan financing received/due from non-controlling interests	(125)	—	—
Rio Tinto share of capital investment	6,961	6,750	7,384

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.

	2023 US$m	2022 US$m	2021 US$m
Net cash generated from operating activities	15,160	16,134	25,345
Less: Purchase of property, plant and equipment and intangible assets	(7,086)	(6,750)	(7,384)
Less: Lease principal payments	(426)	(374)	(358)
Add: Sales of property, plant and equipment and intangible assets	9	—	61
Free cash flow	7,657	9,010	17,664

Financial statements

Annual Report on Form 20-F 2023 | riotinto.com 293

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 19 on page 205 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.

	2023 US$m	2022 US$m Restated(a)
Net debt	(4,231)	(4,188)
Net debt	(4,231)	(4,188)
Total equity	(56,341)	(52,741)
Net debt plus total equity	(60,572)	(56,929)
Net gearing ratio	7%	7%

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

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.

	2023 US$m	2022 US$m Restated(a)
Profit after tax attributable to owners of Rio Tinto (net earnings)	10,058	12,392
Items added back to derive underlying earnings (refer to pages 290 and 291)	1,697	967
Underlying earnings	11,755	13,359
Add/(deduct):
Finance income per the income statement	(536)	(179)
Finance costs per the income statement	967	335
Tax on finance cost	(373)	(238)
Non-controlling interest share of net finance costs	(429)	(98)
Net interest cost in equity accounted units (Rio Tinto share)	53	42
Net interest	(318)	(138)
Adjusted underlying earnings	11,437	13,221
Equity attributable to owners of Rio Tinto - beginning of the year (restated, refer to page 166)	50,634	51,930
Net debt/(cash) - beginning of the year	4,188	(1,576)
Operating assets - beginning of the year	54,822	50,354
Equity attributable to owners of Rio Tinto - end of the year (restated, refer to page 166)	54,586	50,634
Net debt - end of the year	4,231	4,188
Operating assets - end of the year	58,817	54,822
Average operating assets	56,820	52,588
Underlying return on capital employed	20%	25%

(a)Comparative information has been restated to reflect the adoption of narrow-scope amendments to IAS 12. Refer to page 166 for details.

Alternative Performance Measures continued

Alternative Performance Measures

294 Annual Report on Form 20-F 2023 | riotinto.com

Page 295 has been intentionally omitted.

Production, Mineral Reserves,

Mineral Resources

and Operations

Metals and minerals production	297
Mineral Resources and Mineral Reserves	##289 299
Qualified Persons	323
Mines and production facilities	324

Oyu Tolgoi, Mongolia
296	Annual Report on Form 20-F 2023 |  riotinto.com

Metals and minerals production

	Rio Tinto % share1 at 31 Dec 2023	2023 Production		2022 Production		2021 Production
		Total	Rio Tinto share	Total	Rio Tinto share	Total	Rio Tinto share
ALUMINA (‘000 tonnes)
Jonquière (Vaudreuil) (Canada)2	100.0 %	1,392	1,392	1,364	1,364	1,364	1,364
Jonquière (Vaudreuil) specialty plant (Canada)	100.0 %	109	109	114	114	107	107
Queensland Alumina (Australia)	80.0 %	3,366	2,693	3,425	2,740	3,705	2,964
São Luis (Alumar) (Brazil)	10.0 %	3,375	338	3,771	377	3,662	366
Yarwun (Australia)	100.0 %	3,006	3,006	2,949	2,949	3,093	3,093
Rio Tinto total			7,537		7,544		7,894
ALUMINIUM (‘000 tonnes)
Alma (Canada)	100.0 %	484	484	482	482	471	471
Alouette (Sept-Îles) (Canada)	40.0 %	634	253	628	251	629	251
Arvida (Canada)	100.0 %	172	172	171	171	168	168
Arvida AP60 (Canada)	100.0 %	59	59	58	58	60	60
Bécancour (Canada)	25.1 %	465	117	459	115	463	116
Bell Bay (Australia)	100.0 %	186	186	185	185	189	189
Boyne Island (Australia)	59.4 %	496	295	450	267	502	298
Grande-Baie (Canada)	100.0 %	229	229	232	232	230	230
ISAL (Reykjavik) (Iceland)	100.0 %	209	209	202	202	203	203
Kitimat (Canada)	100.0 %	377	377	145	145	263	263
Laterrière (Canada)	100.0 %	244	244	253	253	252	252
Sohar (Oman)	20.0 %	398	80	395	79	395	79
Tiwai Point (New Zealand)	79.4 %	334	265	336	267	333	264
Tomago (Australia)	51.6 %	589	304	586	302	592	305
Rio Tinto total			3,272		3,009		3,151
BAUXITE (‘000 tonnes)
Gove (Australia)	100.0 %	11,566	11,566	11,510	11,510	11,763	11,763
Porto Trombetas (MRN) (Brazil)3	22.0 %	11,472	1,502	11,100	1,332	11,383	1,366
Sangarédi (Guinea)4	23.0 %	14,278	6,425	16,115	7,252	15,797	7,109
Weipa (Australia)	100.0 %	35,126	35,126	34,525	34,525	34,088	34,088
Rio Tinto total			54,619		54,618		54,326
BORATES (‘000 tonnes)5
Rio Tinto Borates – Boron (US)	100.0 %	495	495	532	532	488	488
COPPER (mined) (‘000 tonnes)
Bingham Canyon (US)	100.0 %	151.6	151.6	179.2	179.2	159.4	159.4
Escondida (Chile)	30.0 %	999.7	299.9	995.3	298.6	931.8	279.5
Oyu Tolgoi (Mongolia)6	66.0 %	168.1	110.9	129.5	43.4	163.0	54.6
Rio Tinto total			562.4		521.1		493.5
COPPER (refined) (‘000 tonnes)
Escondida (Chile)	30.0 %	222.2	66.7	203.1	60.9	195.3	58.6
Kennecott (US)	100.0 %	108.6	108.6	148.3	148.3	143.3	143.3
Rio Tinto total			175.2		209.2		201.9
DIAMONDS (‘000 carats)
Diavik (Canada)7	100.0 %	3,340	3,340	4,651	4,651	5,843	3,847
GOLD (mined) (‘000 ounces)
Bingham Canyon (US)	100.0 %	104.8	104.8	122.7	122.7	139.5	139.5
Escondida (Chile)	30.0 %	199.2	59.7	168.7	50.6	161.7	48.5
Oyu Tolgoi (Mongolia)6	66.0 %	177.3	117.0	183.8	61.6	468.1	156.9
Rio Tinto total			281.5		235.0		344.9

See notes on page 298.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 297

	Rio Tinto % share1 at 31 Dec 2023	2023 Production		2022 Production		2021 Production
		Total	Rio Tinto share	Total	Rio Tinto share	Total	Rio Tinto share
GOLD (refined) (‘000 ounces)
Kennecott (US)	100.0 %	74.2	74.2	113.9	113.9	176.4	176.4
IRON ORE (‘000 tonnes)
Hamersley mines (Australia)	(see note 8)	225,898	225,898	218,304	218,304	210,329	210,329
Hope Downs (Australia)	50.0 %	46,482	23,241	48,850	24,425	49,284	24,642
Robe River – Robe Valley (Australia)	53.0 %	29,162	15,456	25,558	13,546	25,497	13,514
Robe River – West Angelas (Australia)	53.0 %	29,999	15,899	31,435	16,660	34,613	18,345
Iron Ore Company of Canada (Canada)	58.7 %	16,478	9,676	17,562	10,312	16,564	9,727
Rio Tinto total			290,171		283,247		276,557
MOLYBDENUM (‘000 tonnes)
Bingham Canyon (US)	100 %	1.8	1.8	3.3	3.3	7.6	7.6
SALT (‘000 tonnes)
Dampier Salt (Australia)	68.4 %	8,737	5,973	8,422	5,757	8,555	5,848
SILVER (mined) (‘000 ounces)
Bingham Canyon (US)	100.0 %	1,618	1,618	2,057	2,057	2,228	2,228
Escondida (Chile)	30.0 %	4,921	1,476	5,301	1,590	5,305	1,591
Oyu Tolgoi (Mongolia)6	66.0 %	1,086	717	871	292	977	328
Rio Tinto total			3,811		3,940		4,148
SILVER (refined) (‘000 ounces)
Kennecott (US)	100.0 %	1,407	1,407	1,950	1,950	2,671	2,671
TITANIUM DIOXIDE SLAG (‘000 tonnes)
Rio Tinto Iron and Titanium
(Canada/South Africa)9	100.0 %	1,111	1,111	1,200	1,200	1,014	1,014
URANIUM (‘000 lbs U3O8)
Energy Resources of Australia (Australia)10	86.3 %	–	–	–	–	75	65
Rio Tinto total			–		–		65

Production data notes

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 can represent production of marketable quantities of ore plus concentrates and pellets. Production figures are sometimes more precise than the rounded

numbers shown, hence small differences may result from calculation of Rio Tinto share of production.

1.Rio Tinto percentage share, shown above, is as at 31 December 2023. The footnotes below include all ownership changes over the three years.

2.Jonquière’s (Vaudreuil) production shows smelter grade alumina only and excludes hydrate produced and used for specialty alumina.

3.On 30 November 2023, Rio Tinto’s ownership interest in Porto Trombetas increased from 12% to 22%. Production is reported including this change from 1 December 2023.

4.Rio Tinto has a 22.95% shareholding in the Sangarédi mine, but benefits from 45% of production.

5.Borate quantities are expressed as B2O3.

6.On 16 December 2022, Rio Tinto completed the acquisition of 100% of Turquoise Hill Resources Ltd, increasing our ownership in Oyu Tolgoi from 33.52% to 66%. Production is reported including

this change from 1 January 2023.

7.On 17 November 2021, our ownership interest in Diavik increased from 60% to 100%. Production from 1 November 2021 is reported including this change.

8.Includes 100% of production from Paraburdoo, Mount Tom Price, Western Turner Syncline, Marandoo, Yandicoogina, Brockman, Nammuldi, Silvergrass, Channar, Gudai-Darri and the Eastern

Range mines. While we own 54% of the Eastern Range mine, 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. Our ownership interest in Channar mine increased from 60% to 100%, following

conclusion of its joint venture with Sinosteel Corporation upon reaching planned 290 million tonnes production on 22 October 2020.

9.Quantities comprise 100% of Rio Tinto Iron and Titanium Quebec Operations and our 74% share of Richards Bay Minerals’ production. Ilmenite mined in Madagascar is processed in Canada.

10.Energy Resources of Australia (ERA) reports drummed U3O8. ERA ceased processing operations on 8 January 2021, as required by the Ranger Authority. In February 2020, our interest in ERA

increased from 68.4% to 86.3% as a result of new ERA shares issued to Rio Tinto under the Entitlement Offer and Underwriting Agreement to raise funds for the rehabilitation of the Ranger

Project Area. Production is reported including this change from 1 March 2020.

Metals and minerals production continued

298 Annual Report on Form 20-F 2023 | riotinto.com

Mineral Resources and Mineral Reserves for

Rio Tinto managed operations are reported in

accordance with the Australasian Code for

Reporting of Exploration Results, Mineral

Resources and Ore Reserves, December

2012 (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). Some variations may occur

between the reporting in accordance with the

JORC Code and SK-1300.

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.

Rio Tinto’s Mineral Resources are reported as

additional (exclusive) to the reported

Mineral Reserves.

For Mineral Resources and Mineral Reserves

reporting, the JORC Code envisages the use

of reasonable investment assumptions to test

the economic viability of the Mineral Reserves

and the reasonable prospects of eventual

economic extraction for the Mineral

Resources. To achieve this, Rio Tinto uses

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. For this

reason and others, some Mineral Resources

and Mineral Reserves reported to the SEC in

this Form 20-F may differ from those Mineral

Resources and Ore Reserves reported in the

Annual Report.

Mineral Resources and Mineral Reserves

information in the tables below is based on

information compiled by Qualified Persons,

most of whom are full time employees of Rio

Tinto or related companies. Each has had a

minimum of five years’ relevant experience

and is a member of a recognised professional

body whose members are bound by a

professional code of ethics. These bodies

include the Australasian Institute of Mining and

Metallurgy (the AusIMM, the Australian

Institute of Geoscientists (AIG) and other

recognised professional organisations (RPOs).

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 page 323, by

operation, along with their professional

affiliation, employer, and accountability for

Mineral Resources and/or Mineral Reserves.

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.

Mineral Resources and Mineral Reserves from

our managed operations are the responsibility

of the managing directors of the business units

and estimates are carried out by the Qualified

Persons.

The Mineral Resources and Mineral Reserves

figures in the following tables are as of 31

December 2023.  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.

JORC Table 1 reports for new or materially

changed significant deposits are released to

the market. They are also available at

riotinto.com/resourcesandreserves. JORC

Table 1, SEC Technical Report Summaries

and NI 43-101 Technical Reports generated by

non-managed units or joint venture partners

are referenced within the reporting footnotes

with the location and initial reporting date

identified.

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. The Technical

Report Summary for Simandou has been filed

as exhibit 96.4 to this Form 20-F. The

Technical Report Summaries for Escondida

and Oyu Tolgoi were filed as exhibit 96.2 and

exhibit 96.3, respectively, to the Form 20-F for

the year ended 31 December 2022 and the

Technical Report Summary for the

Pilbara Operations was filed as exhibit 96.1

to the Form 20-F for the year ended

31 December 2021.

Production, Mineral Reserves, Mineral Resources and Operations

Mineral Resources and Mineral Reserves

Annual Report on Form 20-F 2023 | riotinto.com 299

	Type of mine1	Proven Mineral Reserves as at 31 December 2023			Probable Mineral Reserves as at 31 December 2023
		Tonnage	Grade		Tonnage	Grade
Bauxite2		Mt	% Al2O3	% SiO2	Mt	% Al2O3	% SiO2
Rio Tinto Aluminium (Australia)3 4
– Amrun	O/P	263	53.9	9.2	688	54.5	9.0
– East Weipa and Andoom	O/P	69	50.5	7.9	3	49.5	8.7
– Gove	O/P	57	50.2	6.4	0.7	50.5	5.0
Total (Australia)		388	52.8	8.6	692	54.4	9.0
Porto Trombetas (MRN) (Brazil)5 6	O/P	10	48.9	4.9	0.6	49.0	4.9
Sangarédi (Guinea)7 8	O/P	76	47.0	1.9	4	48.9	2.5
Total bauxite		474	51.8	7.4	696	54.4	9.0

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 Rio Tinto Aluminium bauxite Mineral Reserves are based on specific product pricing based on a long term price of US$ 41.66 /t CFR China for Gove and US$ 33.89 /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$ 36.30 /t FOB as supplied by the JV partner.

7.Sangarédi Mineral Reserves tonnes are reported on a 3% moisture basis and total alumina and silica grade.

8.Sangarédi Mineral Reserves valuations are based on specific product pricing based on a long term price of US$ 37.10 /t FOB as supplied by the JV partner.

Mineral Reserves 

Mineral Reserves

300 Annual Report on Form 20-F 2023 | riotinto.com

Total Mineral Reserves as at 31 December 2023				Rio Tinto share recoverable mineral	Total Mineral Reserves as at 31 December 2022
Tonnage	Grade				Tonnage	Grade
Mt	% Al2O3	% SiO2	%	Mt	Mt	% Al2O3	% SiO2
950	54.3	9.1	100.0	950	801	54.6	8.9
72	50.5	8.0	100.0	72	59	51.7	7.1
58	50.2	6.4	100.0	58	56	50.5	5.8
1,080	53.8	8.8		1,080	916	54.2	8.6
10	48.9	4.9	22.0	10	6	48.2	5.1
80	47.1	1.9	23.0	80	83	47.1	1.9
1,170	53.3	8.3		1,170	1,005	53.6	8.0

Rio Tinto Aluminium

Amrun Mineral Reserves tonnes increase is associated with a routine review of price 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/resources-

and-reserves.

Andoom and Gove Mineral Reserves tonnes increase is associated with a routine review of price assumptions over the life of the mine.  Cessation of mining at East

Weipa in 2024 will result in no future reporting of Mineral Reserves for that operation.

Porto Trometas (MRN) 

On 30 November 2023, Rio Tinto completed an acquisition of Companhia Brasileira de Alumínio’s 10% equity in the Mineracão Rio do Norte bauxite mine (MRN) in

Brazil, raising our stake from 12% to 22%. Total Mineral Reserves as at 31 December 2022 reflect the previous Rio Tinto share.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 301

	Type of mine1	Proven Mineral Reserves as at 31 December 2023						Probable Mineral Reserves as at 31 December 2023
		Tonnage	Grade					Tonnage	Grade
Iron ore2		Mt	% Fe	% SiO2	% Al2O3	% P	% LOI	Mt	% Fe	% SiO2	% Al2O3	% P	% LOI
Australia3 4
– Brockman Ore	O/P	436	62.1	3.3	1.9	0.14	5.4	815	61.4	3.7	2.0	0.13	5.7
– Marra Mamba Ore	O/P	226	62.8	2.7	1.6	0.06	5.2	330	61.6	3.3	2.1	0.06	5.9
– Pisolite (Channel Iron) Ore	O/P	399	57.7	4.8	1.9	0.06	10.3	55	56.6	5.2	2.3	0.05	11.0
Total (Australia)5 6		1,060	60.6	3.7	1.8	0.09	7.2	1,200	61.3	3.7	2.0	0.10	6.0
Iron Ore Company of Canada (Canada)7 8	O/P	79	65.0	2.8	–	–	–	129	65.0	2.8	–	–	–
Simandou (Guinea)9 10	O/P	123	66.4	1.0	1.2	0.07	2.5	552	65.0	0.9	1.8	0.10	3.9
Total iron ore		1,262	61.4	3.4	1.7	0.08	6.3	1,881	62.6	2.8	1.8	0.10	5.0

1.Type of mine: O/P = open pit/surface.

2.Mineral Reserves of iron ore are shown as recoverable Mineral Reserves of marketable product after accounting for all mining and processing losses. Mill recoveries are therefore not shown.

3.Australian iron ore Mineral Reserves tonnes are reported on a dry weight basis.

4.Australian iron ore Mineral Reserves are all located on State Agreement mining leases. Prior to mining, state government approvals (including environmental and heritage) are required. Reported

Mineral Reserves include select areas where one or more approvals remain outstanding. In these areas, it is expected that these approvals will be obtained within the time frames required in the

current production schedule.

5.Australian iron ore Mineral Reserves valuations are based on specific product pricing determined from a base 62% Fines CFR consensus price of US c 133.69 /dmtu. This price is sourced from

the average of forecasts from nine brokers/banks (BoAML, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Macquarie, Morgan Stanley and UBS) and two analysts (CRU

and Woodmac).

6.Australian iron ore deposits (Total Australia) are the equivalent of the Pilbara Property for this Form 20-F.

7.Iron Ore Company of Canada (IOC) Mineral Reserves are reported as marketable product (57% pellets and 43% concentrate for sale) at a natural moisture content of 2%. The marketable product

is derived from mined material comprising 189 million dry tonnes at 38% iron, 36% silica, 0.24% alumina, 0.021% phosphorus (Proven) and 306 million dry tonnes at 38% iron, 35% silica, 0.20%

alumina, 0.024% phosphorus (Probable) using process recovery factors derived from current IOC concentrating and pellet operations. No meaningful relationship has been established between

the product and feed grades of alumina and phosphorus, so these grades cannot be reported for Mineral Reserves. Saleable product is produced to meet silica grade specifications, so the

Mineral Reserves silica grade is the targeted silica grade for the currently anticipated long-term product mix. Loss On Ignition (LOI) is not determined for resource drilling samples, so no estimate

of % LOI is available for Mineral Reserves.

8.IOC Mineral Reserves valuations are based on product pricing of US c 144.35 /dmtu for 65% Fe Concentrate for Sinter (CFS), US c 216.11 /dmtu for 65% Fe blast furnace (BF) grade pellet and

US c 228.35 /dmtu for 67.5% Fe direct reduced (DR) pellets, all CFR China. The consensus 65% Fe fines price CFR China used for IOC concentrate is sourced from an average of forecasts from

Credit Suisse and Woodmac. The BF and DR pellet premiums are sourced from an average of forecasts from Woodmac and CRU. These premiums are added to the 65% Fe Fines consensus.

9.Simandou Mineral Reserves tonnes are reported on a dry weight basis and Simandou Mineral Reserves relate to the Ouéléba portion only of the Simfer Iron Ore Project.

10.Simandou Mineral Reserves valuations are based on specific product pricing determined from a 65% Fe Fines price of US c 136.10 / dmtu CFR China.  This price is sourced from an average of

forecasts from CRU and Woodmac.

Mineral Reserves continued

302 Annual Report on Form 20-F 2023 | riotinto.com

Total Mineral Reserves as at 31 December 2023						Rio Tinto interest	Rio Tinto share marketable product	Total Mineral Reserves as at 31 December 2022
Tonnage	Grade							Tonnage	Grade
Mt	% Fe	% SiO2	% Al2O3	% P	% LOI	%	Mt	Mt	% Fe	% SiO2	% Al2O3	% P	% LOI
1,251	61.7	3.6	2.0	0.13	5.6	87.7	1,251	1,163	61.8	3.5	2.0	0.13	5.5
555	62.1	3.1	1.9	0.06	5.6	80.9	555	581	62.0	3.1	1.9	0.06	5.7
453	57.6	4.8	1.9	0.05	10.4	80.0	453	498	57.8	4.7	1.9	0.05	10.4
2,260	60.9	3.7	2.0	0.10	6.6		2,260	2,242	60.9	3.7	1.9	0.09	6.6
208	65.0	2.8	–	–	–	58.7	208	266	65.0	3.0	–	–	–
675	65.3	0.9	1.7	0.09	3.6	45.1	675	–	–	–	–	–	–
3,143	62.1	3.0	1.8	0.09	5.5		3,143	2,508	61.4	3.6	1.7	0.08	5.9

Australian Iron Ore

Mineral Reserves updates for Brockman, Marra Mamba and Pisolite Ore include mining depletion, the addition of new deposits (primarily at Brockman 4, West Angelas

and Greater Nammuldi) and changes to cut-off grades.

Mineral Reserves classification is determined based on confidence in all the modifying factors. Generally, Proven Mineral Reserves are derived from Measured Mineral

Resources  and Probable Mineral Reserves are derived from Indicated Mineral Resources. In 2023, portions of the Mineral Reserves derived from Measured Mineral

Resources have been classified as Probable Mineral Reserves. This classification primarily represents areas where one or more state government approvals remain

outstanding or specific Traditional Owner engagement is required prior to mining.

Iron Ore Company of Canada

Mineral Reserves updates include depletion, plus a change in the methodology for distinguishing between Proven and Probable Mineral Reserves, which has resulted in

reclassification of a significant proportion of the Proven Mineral Reserves to Probable Mineral Reserves.  The change is based on the density of geometallurgical data

available to estimate iron recovery and ore grind energy in the concentrator.  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/resources-and-reserves.

Simandou

The JORC Table 1 in support of this change was released to the market on 6 December 2023 and can be viewed at riotinto.com/resources-and-reserves.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 303

	Type of mine1	Proven Mineral Reserves as at 31 December 2023					Probable Mineral Reserves as at 31 December 2023
		Tonnage	Grade				Tonnage	Grade
Copper2		Mt	% Cu	g/t Au	g/t Ag	% Mo	Mt	% Cu	g/t Au	g/t Ag	% Mo
Bingham Canyon (US)3
– Bingham Open Pit4	O/P	470	0.37	0.18	1.98	0.038	360	0.36	0.18	1.98	0.028
– Underground Skarns	U/G	–	–	–	–	–	5	2.22	1.39	15.52	0.022
Total (US)		470	0.37	0.18	1.98	0.038	364	0.38	0.20	2.16	0.028
Escondida (Chile)5
– oxide	O/P	30	0.50	–	–	–	10	0.51	–	–	–
– sulphide	O/P	676	0.72	–	–	–	615	0.55	–	–	–
– sulphide leach	O/P	384	0.44	–	–	–	109	0.42	–	–	–
Total (Chile)		1,089	0.61	–	–	–	735	0.53	–	–	–
Oyu Tolgoi (Mongolia)6
– Hugo Dummett North7	U/G	–	–	–	–	–	265	1.55	0.31	3.21	–
– Hugo Dummett North Extension	U/G	–	–	–	–	–	21	1.60	0.56	3.80	–
– Oyut open pit	O/P	159	0.53	0.39	1.30	–	247	0.41	0.25	1.14	–
– Oyut stockpiles	S/P	–	–	–	–	–	38	0.31	0.12	1.04	–
Total (Mongolia)		159	0.53	0.39	1.30	–	571	0.98	0.28	2.19	–
Total copper		1,717	0.54	0.08	0.66	0.010	1,670	0.65	0.14	1.22	0.006

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.Bingham Canyon Mineral Reserves valuations are based on commodity prices of US c

362.42 /lb for copper, US$ 1,535.98 /oz for gold, US$ 20.84 /oz for silver and US$ 13.32/

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 US c 357 /lb

supplied by the JV partner. 

6.Oyu Tolgoi Mineral Reserves valuations are based on commodity prices of US c 380.00 /

lb for copper, US$ 1,567.00 /oz for gold and US$ 20.90 /oz for silver. These are based

on August 2022 consensus prices sourced from the average of 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).

7.The Hugo Dummett North Mineral Reserves include approximately 1.5 million tonnes of

stockpiled material at a grade of 0.46% copper, 0.14 g/t gold and 1.12 g/t silver.

Mineral Reserves continued

304 Annual Report on Form 20-F 2023 | riotinto.com

Total Mineral Reserves as at 31 December 2023					Average mill recovery %				Rio Tinto interest	Rio Tinto share recoverable metal				Total Mineral Reserves as at 31 December 2022
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
829	0.37	0.18	1.98	0.033	89	69	71	63	100.0	2.681	3.257	37.686	0.176	880	0.38	0.18	1.97	0.033
5	2.22	1.39	15.52	0.022	92	70	68	54	100.0	0.096	0.146	1.596	0.001	1.7	1.90	0.71	10.07	0.044
834	0.38	0.19	2.06	0.033						2.777	3.403	39.281	0.176	881	0.38	0.18	1.99	0.033
40	0.51	–	–	–	56	–	–	–	30.0	0.113	–	–	–	52	0.54	–	–	–
1,291	0.64	–	–	–	84	–	–	–	30.0	6.889	–	–	–	1,280	0.65	–	–	–
493	0.43	–	–	–	41	–	–	–	30.0	0.871	–	–	–	489	0.45	–	–	–
1,824	0.58	–	–	–						7.872	–	–	–	1,821	0.59	–	–	–
265	1.55	0.31	3.21	–	92	79	81	–	66.0	3.804	2.068	22.094	–	271	1.54	0.30	3.18	–
21	1.60	0.56	3.80	–	92	81	83	–	56.1	0.312	0.310	2.149	–	21	1.61	0.56	3.82	–
406	0.46	0.30	1.20	–	76	67	55	–	66.0	1.411	2.648	8.576	–	427	0.45	0.30	1.20	–
38	0.31	0.12	1.04	–	71	52	51	–	66.0	0.083	0.079	0.641	–	36	0.32	0.12	1.04	–
730	0.88	0.30	2.00	–						5.611	5.105	33.460	–	755	0.87	0.30	1.98	–
3,387	0.59	0.11	0.94	0.008						16.260	8.508	72.741	0.176	3,457	0.60	0.11	0.94	0.008

Bingham Canyon

Underground Skarns Mineral Reserves comprise the Lower Commercial Skarns (LCS) Mineral Reserves and the North Rim Skarn (NRS) Mineral Reserves. An initial NRS

Probable Mineral Reserve of 3.0 million tonnes at 2.39% copper, 1.77 g/t gold, 18.59 g/t silver, and 0.010% molybdenum (on a 100% basis) was released to the market by Rio

Tinto on 20 June 2023 with a supporting JORC Table 1 and can be viewed at riotinto.com/resources-and-reserves.

It is noted that the Undergrounds Skarns Mineral Reserves are only economically viable while the current open pit is in operation.

Oyu Tolgoi

Production from the Hugo Dummett North L1 underground mine commenced in March 2023.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 305

Mineral Reserves continued

306 Annual Report on Form 20-F 2023 | riotinto.com

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 307

	Type of mine1	Proven Mineral Reserves as at 31 December 2023			Probable Mineral Reserves as at 31 December 2023
		Tonnage	Grade		Tonnage	Grade
Titanium dioxide feedstock 2 3		Mt	% Ti minerals	% Zircon	Mt	% Ti minerals	% Zircon
QIT Madagascar Minerals (QMM) (Madagascar)	O/P	169	3.4	0.2	70	3.0	0.1
Richards Bay Minerals (RBM) (South Africa)	O/P	359	1.5	0.2	520	3.1	0.4
Rio Tinto Iron and Titanium (RTIT) Quebec Operations (Canada)	O/P	–	–	–	151	80.0	–
Total titanium dioxide feedstock		529	2.1	0.2	740	18.8	0.3

1.Type of mine: O/P = open pit/surface.

2.The marketable product (zircon at RBM and zirsil at QMM) is shown after all mining and processing losses. Titanium dioxide feedstock Mineral Reserves are reported as dry in situ tonnes.

3.QMM and RBM Mineral Reserves valuations are based on commodity prices of US$ 233.61 /t for 53% TiO2 product and US$ 1,506.50 /t for 66.5% zircon oxide, adjusted for specific products

produced. RTIT Quebec Operations Mineral Reserves valuations are based on a commodity price of US$ 233.61 /t for 53% TiO2 product, adjusted for specific products produced. These prices

are sourced from TZMI.

Mineral Reserves continued

308 Annual Report on Form 20-F 2023 | riotinto.com

Total Mineral Reserves as at 31 December 2023			Rio Tinto interest	Rio Tinto share marketable product		Total Mineral Reserves as at 31 December 2022
Tonnage	Grade					Tonnage	Grade
Mt	% Ti minerals	% Zircon	%	Mt Titanium dioxide feedstock	Mt Zircon	Mt	% Ti minerals	% Zircon
239	3.3	0.1	80.0	3.6	0.2	266	3.4	0.2
879	2.5	0.3	74.0	9.8	2.3	950	2.4	0.3
151	80.0	–	100.0	47.8	–	152	80.0	–
1,269	11.9	0.3		61.2	2.5	1,368	11.2	0.3

QIT Madagascar Minerals (QMM)

Mineral Reserves tonnes decreased following mining depletion and mine design and schedule changes.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 309

Borates2	Type of mine1	Proven Mineral Reserves as at 31 December 2023		Probable Mineral Reserves as at 31 December 2023		Total Mineral Reserves as at 31 December 2023
		Tonnage		Tonnage		Tonnage
		Mt		Mt		Mt
Boron (US)3	O/P	8		5		13
Diamonds4	Type of mine1	Proven Mineral Reserves as at 31 December 2023		Probable Mineral Reserves as at 31 December 2023		Total Mineral Reserves as at 31 December 2023
		Tonnage	Grade	Tonnage	Grade	Tonnage	Grade
		Mt	Carats per tonne	Mt	Carats per tonne	Mt	Carats per tonne
Diavik (Canada)5 6	O/P & U/G	1.9	2.1	1.3	2.3	3.1	2.2

1.Type of mine: O/P = open pit/surface, U/G = underground. 

2.Mineral Reserves of borates are expressed in terms of marketable product (B2O3) tonnes after all mining and processing losses.

3.Boron Mineral Reserves valuations are based on a three-year trailing weighted average prices of US$ 1,131 /t for Sodium Borates Products and US$ 1,747 /t for Boric Acid Products. 

4.Mineral Reserves of diamonds are shown as recoverable Mineral Reserves of marketable product after accounting for all mining and processing losses. Mill recoveries are therefore not shown. 

5.Diavik Mineral Reserves valuations are based on a three-year trailing average price of US$ 128.38 /ct. 

6.Diavik Mineral Reserves are based on a nominal 1 millimetre lower cut-off size and a final re-crushing size of 6 millimetres. 

Mineral Reserves continued

310 Annual Report on Form 20-F 2023 | riotinto.com

Rio Tinto interest	Rio Tinto share marketable product	Total Mineral Reserves as at 31 December 2022
		Tonnage
%	Mt	Mt
100.0	13	14
Rio Tinto interest	Rio Tinto share recoverable diamonds	Total Mineral Reserves as at 31 December 2022
		Tonnage	Grade
%	M carats	Mt	Carats per tonne
100.0	7	4.4	2.1

Diavik

Mineral Reserves tonnes decreased following mining depletion.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 311

Bauxite	Likely mining method1	Measured Mineral Resources as at 31 December 2023			Indicated Mineral Resources as at 31 December 2023
		Tonnage	Grade		Tonnage	Grade
		Mt	% Al2O3	% SiO2	Mt	% Al2O3	% SiO2
Rio Tinto Aluminium (Australia)2 3
– Amrun	O/P	115	49.2	11.7	388	49.7	11.7
– East Weipa and Andoom	O/P	43	49.9	8.8	–	–	–
– Gove	O/P	9	48.1	8.9	0.4	47.8	8.9
– North of Weipa	O/P	–	–	–	202	52.0	11.1
Total (Australia)		167	49.3	10.8	591	50.5	11.5
Porto Trombetas (MRN) (Brazil)4 5	O/P	93	47.3	5.3	0.8	48.9	2.5
Sangarédi (Guinea)6 7	O/P	–	–	–	1,351	46.6	2.3
Total bauxite		260	48.6	8.9	1,943	47.8	5.1

1.Likely mining method: O/P = open pit/surface.

2.Rio Tinto Aluminium bauxite Mineral Resources are stated as dry product tonnes and total alumina and silica grades.

3.Valuations of the Rio Tinto Aluminium bauxite Mineral Reserves are based on specific product pricing based on a long term price of US$ 41.66 /t CFR China for Gove and US$ 33.89 /t CFR China

for Amrun / East Weipa and Andoom and North of Weipa.  This price is sourced from leading industry analyst CRU.

4.Porto Trombetas (MRN) Mineral Resources are stated as dry in situ tonnes, available alumina grade and total silica grade.

5.Porto Trombetas (MRN) Mineral Resources valuations are based on an average price of US$ 36.30 /t FOB as supplied by the JV partner.

6.Sangarédi Mineral Resources tonnes are reported on a 3% moisture basis and total alumina and silica grades.

7.Sangarédi Mineral Resources valuations are based on specific product pricing based on a long term price of US$ 37.10/t FOB as supplied by the JV partner.

Mineral Resources

Mineral Resources

312 Annual Report on Form 20-F 2023 | riotinto.com

Total Measured and Indicated Mineral Resources as at 31 December 2023			Inferred Mineral Resources as at 31 December 2023			Rio Tinto interest
Tonnage	Grade		Tonnage	Grade
Mt	% Al2O3	% SiO2	Mt	% Al2O3	% SiO2	%
504	49.6	11.7	285	51.7	12.1	100.0
43	49.9	8.8	–	–	–	100.0
9	48.1	8.9	0.01	46.9	8.1	100.0
202	52.0	11.1	1,248	51.8	11.4	100.0
759	50.2	11.4	1,533	51.8	11.5
94	47.3	5.3	32	49.5	4.0	22.0
1,351	46.6	2.3	168	45.8	2.4	23.0
2,203	47.9	5.5	1,733	51.2	10.5

Rio Tinto Aluminium

Amrun, East Weipa and Andoom and Gove Mineral Resources tonnes decreased following the conversion of Mineral Resources to Mineral Reserves.  North of Weipa

Mineral Resources tonnes increased following a large-scale drilling program, remodelling and updated orebody knowledge.

Porto Trombetas (MRN)

On 30 November 2023, Rio Tinto completed an acquisition of Companhia Brasileira de Alumínio’s 10% equity in the Mineracão Rio do Norte bauxite mine (MRN) in

Brazil, raising our stake from 12% to 22%.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 313

Iron ore2	Likely mining method1	Measured Mineral Resources as at 31 December 2023						Indicated Mineral Resources as at 31 December 2023
		Tonnage	Grade					Tonnage	Grade
		Mt	% Fe	% SiO2	% Al2O3	% P	% LOI	Mt	% Fe	% SiO2	% Al2O3	% P	% LOI
Australia3
– Boolgeeda	O/P	–	–	–	–	–	–	–	–	–	–	–	–
– Brockman	O/P	416	62.4	3.4	1.8	0.13	5.0	638	62.5	3.4	1.8	0.13	4.6
– Brockman Process Ore	O/P	209	57.2	6.2	4.0	0.16	7.0	353	56.7	6.3	4.1	0.15	7.4
– Channel Iron Deposit	O/P	627	56.4	5.9	2.5	0.05	10.3	1,267	57.6	5.0	2.7	0.07	9.3
– Detrital	O/P	7	61.9	4.1	3.5	0.06	3.2	62	61.1	4.9	3.5	0.06	3.4
– Marra Mamba	O/P	158	62.4	2.9	1.5	0.07	5.9	421	62.7	2.6	1.5	0.06	5.8
Total (Australia)4		1,417	59.0	4.8	2.4	0.09	7.7	2,741	59.5	4.4	2.5	0.09	7.3
Iron Ore Company of Canada (Canada)5 6	O/P	125	40.2	36.1	0.2	0.02	–	283	38.8	37.1	0.2	0.03	–
Simandou (Guinea)7	O/P	66	67.1	1.9	1.1	0.04	1.0	198	66.2	1.8	1.5	0.05	1.8
Total iron ore		1,609	57.8	7.2	2.2	0.09	6.9	3,222	58.1	7.1	2.2	0.09	6.3

1.Likely mining method: O/P = open pit/surface. 

2.Iron ore Mineral Resources are stated on a dry in situ weight basis. 

3.Australian iron ore Mineral Resources valuations are based on specific product pricing determined from a base 62% Fines CFR consensus price of US c 133.69  /dmtu. This price is sourced from

the average of forecasts from nine brokers/banks (BoAML, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan, Macquarie, Morgan Stanley and UBS) and two analysts (CRU

and Woodmac). 

4.Australian iron ore deposits (Total Australia) are the equivalent of the Pilbara Property for SK-1300 reporting. 

5.Iron Ore Company of Canada (IOC) Mineral Resources are stated as in situ material on a dry basis. This in situ material has the potential to produce marketable product (57% pellets and 43%

concentrate for sale at a natural moisture content of 2%) comprising 54 million tonnes at 65% iron 2.7% silica (Measured), 119 million tonnes at 65% iron 2.7% silica (Indicated) and 104 million

tonnes at 65% iron 2.7% silica (Inferred) using process recovery factors derived from current IOC concentrating and pellet operations. LOI is not determined for resource drilling samples, so no

estimate of % LOI is available for Mineral Resources.

6.IOC Mineral Resources valuations are based on product pricing of US c 144.35 /dmtu for 65% Fe Concentrate for Sinter (CFS), US c 216.11 /dmtu for 65% Fe blast furnace (BF) grade pellet and

US c 228.35 /dmtu for 67.5% Fe direct reduced (DR) pellets, all CFR China. The consensus 65% Fe fines price CFR China used for IOC concentrate is sourced from an average of forecasts from

Credit Suisse and Woodmac. The BF and DR pellet premiums are sourced from an average of forecasts from Woodmac and CRU.  These premiums are added to the 65% Fe Fines consensus.

7.Simandou Mineral Resources valuations are based on specific product pricing determined from a 65% Fe Fines price of US c 136.10 /dmtu CFR China.  This price is sourced from an average of

forecasts from CRU and Woodmac.

Mineral Resources continued

314 Annual Report on Form 20-F 2023 | riotinto.com

Total Measured and Indicated Mineral Resources as at 31 December 2023						Inferred Mineral Resources as at 31 December 2023						Rio Tinto interest %
Tonnage	Grade					Tonnage	Grade
Mt	% Fe	% SiO2	% Al2O3	% P	% LOI	Mt	% Fe	% SiO2	% Al2O3	% P	% LOI
–	–	–	–	–	–	532	57.9	4.8	3.9	0.17	7.6	100.0
1,054	62.5	3.4	1.8	0.13	4.8	4,425	62.3	3.2	1.8	0.13	5.3	74.6
563	56.9	6.3	4.1	0.15	7.3	1,676	56.9	5.9	4.1	0.16	7.7	66.9
1,894	57.2	5.3	2.6	0.07	9.6	3,421	56.3	6.0	3.1	0.08	9.7	68.6
69	61.2	4.8	3.5	0.06	3.4	1,126	60.7	4.2	3.7	0.06	4.2	72.2
579	62.6	2.6	1.5	0.06	5.9	2,619	61.6	3.1	1.8	0.07	6.4	61.4
4,158	59.3	4.6	2.5	0.09	7.5	13,799	59.7	4.3	2.6	0.11	6.9
408	39.2	36.8	0.2	0.03	–	251	38.8	37.5	0.2	0.03	–	58.7
264	66.5	1.8	1.4	0.05	1.6	340	65.8	1.4	1.4	0.07	2.8	45.1
4,831	58.0	7.1	2.2	0.09	6.5	14,391	59.5	4.8	2.6	0.11	6.7

Iron Ore Australia

Mineral Resources tonnes have increased for Channel Iron Deposit and Brockman Process Ore on the basis of additional drilling and updated resource models.

Simandou

Simandou Mineral Resources tonnes decreased due to conversion to Mineral Reserves following completion of the feasibility study for Ouéléba.  A JORC Table 1 in

support of this change was released to the market on 6 December 2023 and can be viewed at riotinto.com/resources-and-reserves.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 315

Copper2 3	Likely mining method1	Measured Mineral Resources as at 31 December 2023					Indicated Mineral Resources as at 31 December 2023
		Tonnage	Grade				Tonnage	Grade
		Mt	% Cu	g/t Au	g/t Ag	% Mo	Mt	% Cu	g/t Au	g/t Ag	% Mo
Winu (Australia)	O/P	–	–	–	–	–	222	0.45	0.35	2.73	–
Bingham Canyon (US)4
– Bingham Open Pit	O/P	38	0.47	0.15	2.47	0.020	22	0.39	0.16	2.66	0.016
– Underground Skarns	U/G	0.2	2.52	1.27	10.56	0.056	12	2.75	1.17	60.67	0.010
Resolution (US)	U/G	–	–	–	–	–	398	1.89	–	3.70	0.042
Total (US)		38	0.48	0.16	2.50	0.020	432	1.84	0.04	5.23	0.040
Escondida (Chile)5
– Escondida - mixed	O/P	4	0.39	–	–	–	6	0.45	–	–	–
– Escondida - oxide	O/P	4	0.32	–	–	–	2	0.58	–	–	–
– Escondida - sulphide	O/P	462	0.57	–	–	–	378	0.50	–	–	–
Total (Chile)		470	0.57	–	–	–	386	0.50	–	–	–
La Granja (Peru)	O/P	–	–	–	–	–	59	0.85	–	–	–
Oyu Tolgoi (Mongolia)6
– Heruga ETG	U/G	–	–	–	–	–	–	–	–	–	–
– Heruga OT	U/G	–	–	–	–	–	–	–	–	–	–
– Hugo Dummett North7	U/G	38	1.90	0.50	4.30	–	251	1.39	0.35	3.24	–
– Hugo Dummett North Extension	U/G	–	–	–	–	–	48	1.62	0.55	4.21	–
– Hugo Dummett South	U/G	–	–	–	–	–	–	–	–	–	–
– Oyut Open Pit	O/P	11	0.41	0.38	1.10	–	61	0.33	0.30	1.13	–
– Oyut Underground	U/G	6	0.48	0.91	1.31	–	33	0.38	0.61	1.18	–
Total (Mongolia)		55	1.44	0.53	3.33	–	393	1.17	0.39	2.86	–
Total Copper		563	0.65	0.06	0.49	0.001	1,491	1.07	0.17	2.67	0.012

1.Likely mining method: O/P = open pit/surface; U/G = underground.

2.Copper Mineral Resources are stated on an in-situ dry weight basis.

3.Copper Mineral Resources valuations excluding Oyu Tolgoi and Escondida, are based on commodity prices of US c 362.42 /lb for copper, US$ 1,535.98 /oz for gold, US$ 20.84 /oz for silver and

US$ 13.32 /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 Canyon Open Pit 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 Resources valuations are based on a copper price of US c 429 /lb supplied by the JV partner.

6.Oyu Tolgoi Mineral Resources valuations are based on commodity prices of US c 380.00 /lb for copper, US$ 1,567.00 /oz for gold, US$ 20.90 /oz for silver and US$ 12.40 /lb for molybdenum.

These are based on August 2022 consensus prices sourced from the average 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).

7.The Hugo Dummett North Mineral Resources include approximately 0.9 million tonnes of stockpiled material at a grade of 0.35% copper, 0.11 g/t gold and 0.85 g/t silver.

Mineral Resources continued

316 Annual Report on Form 20-F 2023 | riotinto.com

Total Measured and Indicated Mineral Resources as at 31 December 2023					Inferred Mineral Resources as at 31 December 2023					Rio Tinto interest
Tonnage	Grade				Tonnage	Grade
Mt	% Cu	g/t Au	g/t Ag	% Mo	Mt	% Cu	g/t Au	g/t Ag	% Mo	%
222	0.45	0.35	2.73	–	499	0.38	0.33	1.98	–	100.0
59	0.44	0.15	2.54	0.018	12	0.26	0.20	2.56	0.005	100.0
12	2.75	1.17	60.03	0.011	14	2.51	0.91	15.41	0.008	100.0
398	1.89	–	3.70	0.042	624	1.28	–	2.74	0.031	55.0
470	1.73	0.05	5.01	0.038	650	1.29	0.02	3.01	0.030
10	0.43	–	–	–	7	0.47	–	–	–	30.0
6	0.41	–	–	–	2	0.65	–	–	–	30.0
840	0.54	–	–	–	3,070	0.53	–	–	–	30.0
856	0.54	–	–	–	3,079	0.53	–	–	–
59	0.85	–	–	–	1,886	0.50	–	–	–	45.0
–	–	–	–	–	842	0.41	0.40	1.44	0.012	56.1
–	–	–	–	–	71	0.42	0.30	1.58	0.011	66.0
289	1.46	0.37	3.38	–	474	0.83	0.29	2.47	–	66.0
48	1.62	0.55	4.21	–	90	1.05	0.37	2.85	–	56.1
–	–	–	–	–	483	0.83	0.07	1.87	–	66.0
72	0.34	0.31	1.12	–	210	0.29	0.19	1.01	–	66.0
39	0.40	0.66	1.20	–	95	0.41	0.42	1.25	–	66.0
448	1.20	0.41	2.91	–	2,265	0.60	0.28	1.76	0.005
2,054	0.95	0.14	2.08	0.009	8,379	0.59	0.10	0.83	0.004

Bingham Canyon

Open Pit Mineral Resources tonnes decreased following conversion of Mineral Resources to Mineral Reserves, exclusion of uneconomic material, mining depletion and

model updates. 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/resources-and-reserves.

Underground Skarns Mineral Resources represent the combined Mineral Resources from the various underground deposits at Bingham Canyon.

La Granja

As reported to the market on 28 August 2023, Rio Tinto and First Quantum Minerals (First Quantum) completed a transaction to form a joint venture that will work to

unlock the development of the La Granja project in Peru, with First Quantum acquiring a 55% stake in the project. The reported Mineral Resources and Rio Tinto interest

percentage (45%) reflect this change.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 317

	Likely mining method1	Measured Mineral Resources as at 31 December 2023			Indicated Mineral Resources as at 31 December 2023
		Tonnage	Grade		Tonnage	Grade
Titanium dioxide feedstock2 3		Mt	% Ti minerals	% Zircon	Mt	% Ti minerals	% Zircon
QIT Madagascar Minerals (QMM) (Madagascar)	O/P	356	4.3	0.2	318	4.0	0.2
Richards Bay Minerals (RBM) (South Africa)	O/P	—	—	—	8	12.0	8.1
Rio Tinto Iron and Titanium (RTIT) Quebec Operations (Canada)	O/P	—	—	—	11	84.9	—
Total titanium dioxide feedstock		356	4.3	0.2	337	6.8	8.3

1.Likely mining method: O/P = open pit/surface.

2.Titanium Dioxide Feedstock Mineral Resources are reported as dry in situ tonnes.

3.QMM and RBM Mineral Resources valuations are based on commodity prices of US$ 233.61 /t for 53% TiO2 product and US$ 1,506.50 /t for 66.5% zircon oxide, adjusted for specific products

produced. RTIT Quebec Operations Mineral Resources valuations are based on a commodity price of US$ 233.61 /t for 53% TiO2 product adjusted for specific products produced. These prices

are sourced from TZMI.

Mineral Resources continued

318 Annual Report on Form 20-F 2023 | riotinto.com

Total Measured and Indicated Mineral Resources as at 31 December 2023			Inferred Mineral Resources as at 31 December 2023			Rio Tinto interest
Tonnage	Grade		Tonnage	Grade
Mt	% Ti minerals	% Zircon	Mt	% Ti minerals	% Zircon	%
674	4.2	0.2	477	3.9	0.2	80.0
8	12.0	8.1	–	–	–	74.0
11	84.9	–	16	79.2	–	100.0
693	5.5	4.1	492	6.3	0.2

Richards Bay Mineral (RBM)

Mineral Resources tonnes increased due to the addition of stockpiled material.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 319

	Likely mining method1	Measured Mineral Resources as at 31 December 2023		Indicated Mineral Resources as at 31 December 2023
		Tonnage		Tonnage
Borates2		Mt		Mt
Jadar (Serbia)3 4	U/G	–		14
	Likely mining method1	Measured Mineral Resources as at 31 December 2023		Indicated Mineral Resources as at 31 December 2023
		Tonnage	Grade	Tonnage	Grade
Diamonds5		Mt	Carats per tonne	Mt	Carats per tonne
Diavik (Canada)6	U/G	1.5	2.4	1.2	2.7
	Likely mining method1	Measured Mineral Resources as at 31 December 2023		Indicated Mineral Resources as at31 December 2023
		Tonnage	Grade	Tonnage	Grade
Lithium5		Mt	% Li2O	Mt	% Li2O
Jadar (Serbia)4	U/G	–	–	85	1.76

1.Type of mine: U/G = underground.

2.Borates Mineral Resources are stated as dry in situ B2O3, rather than marketable product as in Mineral Reserves.

3.Jadar equivalent dry in situ Mineral Resources comprise of 85 million tonnes at 16.1% B2O3 (Indicated) and 58.0 million tonnes at 12.0% B2O3 (Inferred).

4.Jadar Mineral Resources valuations are based on commodity prices of US$ 8,750 /t for lithium carbonate and US$ 1,100 /t for boric acid. These prices were sourced from CRU.

5.Diamond and lithium Mineral Resources are stated as dry in situ tonnes.

6.Diavik Mineral Resources valuations are based on a three-year trailing average price of US$ 128.38 /ct.

Mineral Resources continued

320 Annual Report on Form 20-F 2023 | riotinto.com

Total Measured and Indicated Mineral Resources as at 31 December 2023		Inferred Mineral Resources as at 31 December 2023		Rio Tinto interest
Tonnage		Tonnage
Mt		Mt		%
14		7		100.0
Total Measured and Indicated Mineral Resources as at 31 December 2023		Inferred Mineral Resources as at 31 December 2023		Rio Tinto interest
Tonnage	Grade	Tonnage	Grade
Mt	Carats per tonne	Mt	Carats per tonne	%
2.7	2.5	0.3	2.1	100.0
Total Measured and Indicated Mineral Resources as at 31 December 2023		Inferred Mineral Resources as at 31 December 2023		Rio Tinto interest
Tonnage	Grade	Tonnage	Grade
Mt	% Li2O	Mt	% Li2O	%
85	1.76	58	1.87	100.0

Diavik

Mineral Resources tonnes increased based on a review of the material remaining at the end of mine life in combination with unplanned tonnes in the crown and sill

pillars.

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 321

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 Technical

Officer, Development & Technology, 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.

Orebody Knowledge Centre

of Excellence

The Orebody Knowledge Centre of Excellence

contains a dedicated Orebody Knowledge

Technical Assurance team. Orebody

Knowledge Technical Assurance, in

conjunction with the ORSC, is the guardian

and author of Group Mineral Resources and

Mineral Reserves standards and guidance,

and is responsible for the governance and

compilation of Group Mineral Resources,

Mineral Reserves and reconciliation reporting.

The Technical Assurance 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 Orebody Knowledge Technical

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 2023, 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 to ensure both

consistency of reporting and determine any

Group-wide risks to the various processes.

Mineral Resources continued

322 Annual Report on Form 20-F 2023 | riotinto.com

Qualified Persons

	Association(a)	Employer	Accountability	Deposits
Bauxite
A McIntyre	AusIMM	Rio Tinto	Resources	Gove, East Weipa and Andoom, North of Weipa, Amrun
W Saba	AusIMM		Reserves	Gove, East Weipa and Andoom, Amrun
M Alpha DIALLO	EFG	Compagnie des Bauxites de Guinée	Resources	Sangaredi
M Keersemaker	AusIMM	External consultant to Compagnie des Bauxites de Guinée	Reserves
R Aglinskas	AusIMM	External consultants to Mineração Rio do Norte	Resources	Trombetas
L H Costa	AusIMM		Reserves
Borates
B Griffiths	SME	Rio Tinto	Reserves	Boron
Copper
H Martin	AusIMM	Rio Tinto	Resources	Resolution(b)(c)
J Marshall	AusIMM		Resources
A Schwarz	AusIMM		Resources
O Togtokhbayar	AusIMM	Rio Tinto	Resources	Oyu Tolgoi(b) (c) (d)
B Ndlovu	AusIMM		Reserves
N Robinson	AusIMM		Reserves
R Hayes	AusIMM	Rio Tinto	Resources	Bingham Canyon(b) (c) (d)
A Chiquini	AusIMM		Resources
P Rodriguez	AusIMM		Resources
C McArthur	AusIMM		Reserves
B Pett	AusIMM		Reserves
R Maureira	AusIMM	Minera Escondida Ltda.	Resources	Escondida, Escondida – Chimborazo – sulphide, Pampa Escondida – sulphide(d), Pinta Verde
P Castillo	AusIMM		Reserves	Escondida
J Marshall	AusIMM	Rio Tinto	Resources	La Granja
J Pocoe	AusIMM	Rio Tinto	Resources	Winu(b) (d)
Diamonds
K Pollock	NAPEG	Rio Tinto	Resources & Reserves	Diavik
C Auld	NAPEG		Reserves
Iron ore
M Styles	AusIMM	Rio Tinto	Resources	Simandou
M Apfel	AusIMM		Reserves
M McDonald	PEGNL	Rio Tinto	Resources	Iron Ore Company of Canada
B Power	PEGNL		Resources
R Way	PEGNL		Resources
R Williams	PEGNL		Reserves
S Roche	AusIMM		Reserves
N Brajkovich	AusIMM	Rio Tinto	Resources	Rio Tinto Iron Ore – Boolgeeda, Brockman, Brockman Process Ore, Channel Iron Deposit, Detrital, Marra Mamba
M Judge	AusIMM		Resources
E Barron	AusIMM		Resources
AA Latscha	AusIMM		Resources
P Savory	AusIMM		Resources
P Barnes	AusIMM		Reserves	Rio Tinto Iron Ore – Brockman Ore, Marra Mamba Ore, Pisolite (Channel Iron) Ore
R Bleakley	AusIMM		Reserves
B Satria Yudha	AusIMM		Reserves
L Vilela Couto	AusIMM		Reserves
Lithium
I Misailovic	EFG	Rio Tinto	Resources	Jadar(e)
D Tanaskovic	EFG		Resources
Titanium dioxide feedstock
J Dumouchel	OGQ	Rio Tinto	Resources	Rio Tinto Iron and Titanium Quebec Operations (RTIT Quebec Operations)
D Gallant	OIQ		Reserves
A Cawthorn-Blazeby	SACNASP	Rio Tinto	Resources	Richards Bay Minerals (RBM)(f)
S Mnunu	SACNASP		Reserves
A Louw	AusIMM	Rio Tinto	Resources	QIT Madagascar Minerals (QMM)(f)
H Rakotonindrainy	IOM3		Reserves

(a)AusIMM: Australasian Institute of Mining and Metallurgy

EFG: European Federation of Geologists

IOM3: Institute of Materials, Minerals and Mining

NAPEG: Association of Professional Engineers; Geologists and Geophysicists of the Northwest Territories

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: Southern 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

Annual Report on Form 20-F 2023 | riotinto.com 323

Mines and production facilities

Group mines as at 31 December 2023

Iron Ore

Production properties

Property Australian Pilbara Operations Mine Hamersley Iron: –Brockman 2 –Brockman 4 –Channar –Gudai-Darri –Marandoo –Mount Tom Price –Nammuldi –Paraburdoo –Silvergrass –Western Turner Syncline –Yandicoogina Ownership 100% Rio Tinto Operator Rio Tinto Location Pilbara region, Western Australia Access and infrastructure Access and infrastructure within the property includes: –a network of sealed and unsealed roads connecting to public roads and highways –public and Rio Tinto-operated airports –a Hamersley and Robe owned integrated heavy haulage rail network, operated by Pilbara Iron comprising in excess of 1,890km of rail, multiple rail cars and locomotives –four shipping terminals, located at Dampier and Cape Lambert and managed as a single port system –water piping networks for both abstracted water and supply of fresh water to sites –managed accommodation villages for fly-in fly-out (FIFO) sites –a housing portfolio managing properties in the towns of Dampier, Wickham, Karratha, Pannawonica, Paraburdoo and Tom Price –tailings storage facilities at several mine sites. All assets are subject to routine inspections and ongoing investment and maintenance programs to ensure these remain fit-for-purpose. Title/lease/acreage Agreements for life of mine with Government of Western Australia, save for the Yandicoogina mining lease, which expires in 2039 with an option to extend for 21 years. Mount Tom Price, Marandoo, Brockman 2, Brockman 4, Nammuldi and Western Turner Syncline Mineral and Mining Leases held under Iron Ore (Hamersley Range) Agreement Act 1963. Area of ML4SA approximately 79,329 hectares (ha). Area of M272SA approximately 14,136ha. Gudai-Darri Mineral Lease held under Iron Ore (Mount Bruce) Agreement Act 1972. Area of ML252SA 47,406ha. Paraburdoo and Eastern Range Mineral Lease held under Iron Ore (Hamersley Range) Agreement Act 1968. Area of ML246SA approximately 12,950ha. Channar Mining Lease held under Iron Ore (Channar Joint Venture) Agreement Act 1987. Mining lease expires in 2028 with an option to extend by up to five years. Area of M265SA approximately 5,965ha. Yandicoogina Mining Lease held under Iron Ore (Yandicoogina) Agreement Act 1996. Area of M274SA approximately 30,550ha. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/ investment requirements; and payment of taxes and government royalties. The current business also operates under an Indigenous Land Use Agreement (ILUA) which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; and heritage and cultural protections. History Mount Tom Price began operations in 1966, followed by Paraburdoo in 1974. During the 1990s, Channar (1990), Brockman 2 (1992), Marandoo (1994) and Yandicoogina (1998) achieved first ore. Nammuldi achieved first ore in 2006 followed by Brockman 4 (2010), Western Turner Syncline (2011) and Silvergrass (2017). The latest addition to the network of Hamersley Iron mines, Gudai-Darri, had first ore railed in December 2021, and commissioned its primary crusher in the second quarter of 2022. Property description/type of mine All mines operated by Rio Tinto within the property are open pit mines. The mining method employed uses conventional surface mining, whereby shovels and loaders are used to load drilled and blasted material into trucks for removal to waste dumps and stockpiles or feed to process plants. In addition to mining activities, Rio Tinto conducts both exploration and development drilling across the property. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Brockman 2, Brockman 4, Channar, Gudai-Darri, Tom Price, Paraburdoo and Western Turner Syncline: mineralisation is haematite/goethite mineralisation hosted within the banded iron formations of the Brockman Formation. Detrital deposits also occur at these sites. At Tom Price and Western Turner Syncline, some goethite/haematite mineralisation hosted within the Marra Mamba Formation also occurs. Marandoo, Nammuldi and Silvergrass: mineralisation occurs as goethite/haematite within the banded iron formations of the Marra Mamba Formation. Some detrital mineralisation also occurs. Yandicoogina: goethite mineralisation occurs as pisolite ores within the paleo-channel of a channel iron formation. Processing plants and other available facilities At Brockman 2, Brockman 4, the Nammuldi dry plant and Gudai- Darri, dry crushing and screening is used to produce lump and fines iron ore products. Ore from the Silvergrass and Nammuldi mines is blended and processed through a wet scrubbing and screening plant, ahead of desliming of the fines product using hydrocyclones. At Marandoo, wet scrubbing and screening is used to produce lump and fines iron ore products, prior to desliming of fines products using hydrocyclones. Ore from the Channar and Paraburdoo mines is crushed and then processed through a central tertiary crushing and dry screening plant to produce a dry lump product, with further wet processing of the fines using hydrocyclones to remove slimes. Ore from the Tom Price and Western Turner Syncline mines is directed to either the high-grade plant for dry crushing and screening to dry lump and fines products, or to the low grade plant for beneficiation. Heavy media separation is used to beneficiate low-grade lump, and a combination of heavy media hydrocyclones and spirals is used to beneficiate the low-grade fines. At Yandicoogina, ore is crushed to fines product only through a combination of dry crushing and screening, or crushing and wet processing of ore using classification to remove finer particles. The processing plants within the Hamersley Iron network vary considerably in age, and many plants have been subject to brownfields development since original construction. All plants are subject to an ongoing regime of sustaining capital investment and maintenance, underpinned by asset integrity audits, engineering inspections, engineering life cycles for key equipment and safety inspections and audits. Power source Supplied through the integrated Hamersley and Robe power network operated by Pilbara Iron.

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Property Australian Pilbara Operations Mine Bao-HI Joint Venture: –Eastern Range and Western Range mines Ownership 54% Rio Tinto. Rio Tinto owns 54% of the Bao-Hi joint venture with the remaining 46% held by China Baowu Group. Operator Rio Tinto Location Pilbara region, Western Australia	Access and infrastructure Access and infrastructure within the property includes: –a network of sealed and unsealed roads connecting to public roads and highways –public and Rio Tinto-operated airports –a Hamersley and Robe owned integrated heavy haulage rail network, operated by Pilbara Iron comprising in excess of 1,890km of rail, multiple rail cars and locomotives –four shipping terminals, located at Dampier and Cape Lambert and managed as a single port system –water piping networks for both abstracted water and supply of fresh water to sites –managed accommodation villages for FIFO sites –a housing portfolio managing properties in the towns of Dampier, Wickham, Karratha, Pannawonica, Paraburdoo and Tom Price –tailings storage facilities at several mine sites. All assets are subject to routine inspections and ongoing investment and maintenance programs to ensure these remain fit-for-purpose. Title/lease/acreage Paraburdoo and Eastern Range and Western Range Mineral Lease held under Iron Ore (Hamersley Range) Agreement Act 1968. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/investment requirements; and payment of taxes and government royalties. The current business also operates under an ILUA which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; and heritage and cultural protections.	History The Bao-HI joint venture was established in 2002 and has delivered sales of more than 200 million tonnes of iron ore to China. First ore from Eastern Range was delivered in 2004. In 2022, the Bao-HI joint venture was extended with a commitment to deliver 275 million tonnes of sales of iron ore to China. First ore from Western Range is planned for 2024 utilising existing infrastructure, with a new crusher at Western Range mine planned to be operational in 2025. Property description/type of mine All mines operated by Rio Tinto within the property are open pit mines. The mining method employed uses conventional surface mining, whereby shovels and loaders are used to load drilled and blasted material into trucks for removal to waste dumps or feed to process plants. In addition to mining activities, Rio Tinto conducts both exploration and development drilling across the property. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Mineralisation at Eastern Range and Western Range occurs as haematite/goethite mineralisation hosted within the banded iron formations of the Brockman Formation. Processing plants and other available facilities Ore from the Eastern Range mine is crushed and then processed through the central Paraburdoo tertiary crushing and dry screening plant to produce a dry lump product, with further wet processing of the fines product using hydrocyclones to remove slimes. The same process flow is planned for ore from Western Range. The processing plants within the Hamersley Iron network vary considerably in age, and many plants have been subject to brownfields development since original construction. All plants are subject to an ongoing regime of sustaining capital investment and maintenance, underpinned by asset integrity audits, engineering inspections, engineering life cycles for key equipment and safety inspections and audits. Power source Supplied through the integrated Hamersley and Robe power network operated by Pilbara Iron.
Property Australian Pilbara Operations Mine Hope Downs 1 Ownership 50% Rio Tinto 50% Hancock Prospecting Pty Ltd Operator Rio Tinto Location Pilbara region, Western Australia	Access and infrastructure Access and infrastructure within the property includes: –a network of sealed and unsealed roads connecting to public roads and highways –public and Rio Tinto-operated airports –a Hamersley and Robe owned integrated heavy haulage rail network, operated by Pilbara Iron comprising in excess of 1,890km of rail, multiple rail cars and locomotives –four shipping terminals, located at Dampier and Cape Lambert and managed as a single port system –water piping networks for both abstracted water and supply of fresh water to sites –managed accommodation villages for FIFO sites –tailings storage facilities at several mine sites. All assets are subject to routine inspections and ongoing investment and maintenance programs to ensure these remain fit-for-purpose.	Title/lease/acreage Mining lease expires in 2027 with two options to extend of 21 years each. Mining lease held under Iron Ore (Hope Downs) Agreement Act 1992. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/ investment requirements; and payment of taxes and government royalties. The current business also operates under an ILUA which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; and heritage and cultural protections. History Joint venture between Rio Tinto and Hancock Prospecting. Construction of Stage 1 to 22Mtpa commenced 2006 and first production occurred 2007. Stage 2 to 30Mtpa completed 2009.

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Iron Ore continued

Property Australian Pilbara Operations Mine Hope Downs 1 Ownership 50% Rio Tinto 50% Hancock Prospecting Pty Ltd Operator Rio Tinto Location Pilbara region, Western Australia	Property description/type of mine All mines operated by Rio Tinto within the property are open pit mines. The mining method employed uses conventional surface mining, whereby shovels and loaders are used to load drilled and blasted material into trucks for removal to waste dumps or feed to process plants. In addition to mining activities, Rio Tinto conducts both exploration and development drilling across the property. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Mineralisation at Hope Downs 1 occurs as goethite/haematite within the banded iron formations of the Marra Mamba and Brockman Formation. Some detrital mineralisation also occurs.	Processing plants and other available facilities Ore from Hope Downs 1 is processed through the Hope Downs 1 processing plant, which utilises dry crushing and screening to produce lump and fines iron ore products. The processing plants within the Hamersley Iron network vary considerably in age, and many plants have been subject to brownfields development since original construction. All plants are subject to an ongoing regime of sustaining capital investment and maintenance, underpinned by asset integrity audits, engineering inspections, engineering life cycles for key equipment and safety inspections and audits. Power source Supplied through the integrated Hamersley and Robe power network operated by Pilbara Iron.
Property Australian Pilbara Operations Mine Hope Downs 4 Ownership 50% Rio Tinto 50% Hancock Prospecting Pty Ltd Operator Rio Tinto Location Pilbara region, Western Australia	Access and infrastructure Access and infrastructure within the property includes: –a network of sealed and unsealed roads connecting to public roads and highways –public and Rio Tinto-operated airports –a Hamersley and Robe owned integrated heavy haulage rail network, operated by Pilbara Iron comprising in excess of 1,890km of rail, multiple rail cars and locomotives –four shipping terminals, located at Dampier and Cape Lambert and managed as a single port system –water piping networks for both abstracted water and supply of fresh water to sites –managed accommodation villages for FIFO sites –tailings storage facilities at several mine sites. All assets are subject to routine inspections and ongoing investment and maintenance programs to ensure these remain fit-for-purpose. Title/lease/acreage Mining lease expires in 2027 with two options to extend of 21 years each. Mining lease held under Iron Ore (Hope Downs) Agreement Act 1992. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/ investment requirements; and payment of taxes and government royalties. The current business also operates under an ILUA which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; and heritage and cultural protections.	History Joint venture between Rio Tinto and Hancock Prospecting. Construction of wet plant processing to 15Mtpa commenced 2011 and first production occurred 2013. Property description/type of mine All mines operated by Rio Tinto within the property are open pit mines. The mining method employed uses conventional surface mining, whereby shovels and loaders are used to load drilled and blasted material into trucks for removal to waste dumps or feed to process plants. In addition to mining activities, Rio Tinto conducts both exploration and development activities across the property. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Mineralisation at Hope Downs 4 occurs as haematite/goethite mineralisation hosted within the banded iron formations of the Brockman Formation. Processing plants and other available facilities Ore from Hope Downs 4 is processed through the Hope Downs 4 processing plant. Wet scrubbing and screening are used to separate lump and fines products, prior to desliming of fines product using hydrocyclones. The processing plants within the Hamersley Iron network vary considerably in age, and many plants have been subject to brownfields development since original construction. All plants are subject to an ongoing regime of sustaining capital investment and maintenance, underpinned by asset integrity audits, engineering inspections, engineering life cycles for key equipment and safety inspections and audits. Power source Supplied through the integrated Hamersley and Robe power network operated by Pilbara Iron.

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Property Australian Pilbara Operations Mine Robe River Iron Associates: Robe Valley mines: –Mesa A –Mesa J –West Angelas Ownership 53% Rio Tinto Robe River is a joint venture between Rio Tinto (53%), Mitsui Iron Ore Development (33%), and Nippon Steel Corporation (14%) Operator Rio Tinto Location Pilbara region, Western Australia	Access and infrastructure Access and infrastructure within the property includes: –a network of sealed and unsealed roads connecting to public roads and highways –public and Rio Tinto-operated airports –a Hamersley and Robe owned integrated heavy haulage rail network, operated by Pilbara Iron comprising in excess of 1,890km of rail, multiple rail cars and locomotives –four shipping terminals, located at Dampier and Cape Lambert and managed as a single port system –water piping networks for both abstracted water and supply of fresh water to sites –managed accommodation villages for FIFO sites –a housing portfolio managing properties in the towns of Dampier, Wickham, Karratha, Pannawonica, Paraburdoo and Tom Price –tailings storage facilities at several mine sites. All assets are subject to routine inspections and ongoing investment and maintenance programmes to ensure these remain fit-for-purpose. Title/lease/acreage Agreements for life of mine with Government of Western Australia. Mineral lease held under Iron Ore (Robe River) Agreement Act 1964. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/ investment requirements; and payment of taxes and government royalties. The current business also operates under an ILUA which includes commitments for payments made to trust accounts; Indigenous employment and business opportunities; and heritage and cultural protections.	History The first shipment from Robe Valley was in 1972. Interest acquired in 2000 through North Limited acquisition. First ore was shipped from West Angelas in 2002. Property description/type of mine All mines operated by Rio Tinto within the property are open pit mines. The mining method employed uses conventional surface mining, whereby shovels and loaders are used to load drilled and blasted material into trucks for removal to waste dumps or feed to process plants. In addition to mining activities, Rio Tinto conducts both exploration and development drilling across the property. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Robe Valley deposits: goethite mineralisation occurs as pisolite ores within the paleo-channel of a channel iron formation. West Angelas deposit: mineralisation occurs as goethite/ haematite within the banded iron formations of the Marra Mamba Formation. Some detrital mineralisation also occurs. Processing plants and other available facilities Ore from the Robe Valley mines of Mesa A and Mesa J is processed through either dry crushing and screening plants or through wet processing plants using scrubbing and screening to remove finer particles. Crushed and deslimed ore from the Robe Valley mines is railed to Cape Lambert, where further dry crushing and screening through a dedicated processing plant produces lump and fines iron ore products. At West Angelas mine, dry crushing and screening is used to produce lump and fines iron ore products. The processing plants within the Hamersley Iron network vary considerably in age, and many plants have been subject to brownfields development since original construction. All plants are subject to an ongoing regime of sustaining capital investment and maintenance, underpinned by asset integrity audits, engineering inspections, engineering life cycles for key equipment and safety inspections and audits. Power source Supplied through the integrated Hamersley and Robe power network operated by Pilbara Iron.
Property Dampier Salt Port Hedland, Dampier and Lake Macleod Mine – Ownership 68.4% Rio Tinto Dampier Salt is a joint venture between Rio Tinto (68%), Marubeni Corporation (22%) and Sojitz (10%) Operator Rio Tinto (Dampier Salt Limited) Location Gascoyne and Pilbara regions, Western Australia	Access and infrastructure Road and port. Title/lease/acreage Mining and mineral leases expiring in 2034 at Dampier, 2029 at Port Hedland and 2031 at Lake MacLeod. Mineral leases are held under Dampier Solar Salt Industry Agreement Act 1967, Leslie Solar Salt Industry Agreement Act 1966 and Evaporites (Lake MacLeod) Agreement Act 1967 respectively. Key permit conditions State Agreement conditions are set by the Western Australian Government and broadly comprise environmental compliance and reporting obligations; closure and rehabilitation considerations; local procurement and community initiatives/investment requirements; and payment of taxes and government royalties. History Construction of the Dampier field started in 1969; first shipment in 1972. Lake MacLeod was acquired in 1978 as an operating field. Port Hedland was acquired in 2001 as an operating field. In January 2024, Dampier Salt entered into a sales agreement for Lake MacLeod with privately owned salt company Leichhardt Industrials Group. Completion of the sale is conditional on certain commercial and regulatory conditions being satisfied, and this is expected to occur by the end of the year. Property description/type of mine Solar evaporation of seawater at Dampier and Port Hedland; underground brine at Lake MacLeod; extraction of gypsum at Lake MacLeod.	Type of mineralisation Salt is grown every year through solar evaporation in permanent crystallising pans. Gypsum is present in the top layer covering most of Lake Macleod. Processing plants and other available facilities Salt is processed through a washing plant, consisting of screening washbelts at Lake MacLeod, Screwbowl classifiers and static screens at Port Hedland and sizing screens, counter- current classifiers with dewatering screens and centrifuges at Dampier. Dampier produces shipping-ready product for immediate shiploading. Washed salt at Lake MacLeod and Port Hedland is dewatered on stockpiles. Lake Macleod also mines and processes gypsum in leaching heaps. Power source Long-term contracts with Hamersley Iron and Horizon Power and on-site generation.

Production, Mineral Reserves, Mineral Resources and Operations

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Copper

Production properties

Property Escondida Ownership 30% Rio Tinto – 57.5% BHP, 10% JECO Corporation consortium comprising Mitsubishi, JX Nippon Mining and Metals (10%), 2.5% JECO 2 Ltd Operator BHP Location Atacama Desert, Chile	Access and infrastructure Road and rail, including a pipeline and road to the deep sea port at Coloso: –One concentrate pipeline from mine site to port facility at Coloso –Two desalinisation plants at Coloso port along with water treatment plant for concentrate filtrate, –Two water pipelines and four pump stations for freshwater supply to site, –Roadway to site, rail line for supplies and cathode transport, power transport facilities to tie site to power grid, –Site offices, housing, and cafeteria facilities to support employees and contractors on site, –Warehouse buildings and laydown facilities to support operations and projects on site. Title/lease/acreage Rights conferred by Government under Chilean Mining Code. Eighteen mineral rights leases with a total of 58,934ha. Key permit conditions Annual tenement payments (due March each year). The current business operates under the rights conferred by the Government under Chilean Mining Code and includes key underlying documents such as the Environmental Impact Assessment Permit as well as the Closure Plan Permit. History Production started in 1990 and since then capacity has been expanded numerous times. In 1998 first cathode was produced from the oxide leach plant, and during 2006 the sulphide leach plant was inaugurated, a year after the start of Escondida Norte pit production. In 2016, the third concentrator plant was commissioned.	Property description/type of mine Two active surface open pit mines in production, Escondida and Escondida Norte with ore being processed via three processing options, Oxide leach, Sulfide RoM leach, or conventional flotation concentrators. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Consists of a series of porphyry deposits containing copper, minor gold, silver, and molybdenum. Processing plants and other available facilities Los Colorados, Laguna Seca Line 1, and Laguna Seca Line 2 Concentrators. Oxide leach facility (OLAP), SL RoM leach facility and SX/EW facility. Power source Supplied from grid under various contracts with local generating companies.
Property Rio Tinto Kennecott Ownership 100% Rio Tinto Operator Rio Tinto (Kennecott Utah Copper LLC) Location Near Salt Lake City, Utah, US	Access and infrastructure Pipeline, road and rail. Title/lease/acreage Wholly owned – approximately 95,000 acres in total. Key permit conditions Permit conditions are established by Utah and US Government agencies and comprise: –environmental compliance and reporting –closure and reclamation requirements History Interest acquired in 1989. In 2012, the pushback of the south wall commenced, extending the mine life from 2018 to 2032. Approval for underground mining at Lower Commercial Skarn was obtained in 2022.	Property description/type of mine Open pit and underground (beginning in 2023). This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Porphyry and associated skarn deposits containing copper, gold, silver, molybdenum and tellurium. Processing plants and other available facilities Copperton concentrator, Garfield smelter, refinery, and precious metals plant, assay lab and tailings storage facilities. Power source Supply contract with Rocky Mountain Power.

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Property Oyu Tolgoi Ownership Rio Tinto owns a 66% interest in Oyu Tolgoi LLC; the remaining 34% interest is held by the Government of Mongolia through Erdenes Oyu Tolgoi LLC Rio Tinto is responsible for the day-to-day operational management and development of the project Operator Rio Tinto Location Khanbogd soum, Umnugovi province, Mongolia Access and infrastructure Air and road. Title/lease/acreage Three mining licences are 100% held by Oyu Tolgoi LLC: MV-006708 (the Manakht licence: 4,533ha), MV-006709 (the Oyu Tolgoi licence: 8,490ha), and MV-006710 (the Khukh Khad licence: 1,763ha). Two further licences are held in joint venture with Entrée Gold LLCMV-015226 (the Shivee Tolgoi Licence) and MV-015225 (the Javkhlant Licence). The licence term under the Minerals Law of Mongolia is 30 years with two 20-year extensions. First renewals are due in 2033 and 2039 for the Oyu Tolgoi and Entrée Gold licences respectively. Key permit conditions Investment Agreement dated 6 October 2009, between the Government of Mongolia, Oyu Tolgoi LLC, Turquoise Hill Resources (TRQ), and Rio Tinto in respect of Oyu Tolgoi (Investment Agreement). Amended and Restated Shareholders Agreement dated 8 June 2011 among Oyu Tolgoi LLC, THR Oyu Tolgoi Ltd. (formerly Ivanhoe Oyu Tolgoi (BVI) Ltd.), Oyu Tolgoi Netherlands B.V. and Erdenes MGL LLC (ARSHA). Erdenes MGL LLC since transferred its shares in Oyu Tolgoi LLC and its rights and obligations under the ARSHA to its subsidiary, Erdenes Oyu Tolgoi LLC. Power Source Framework Agreement dated 31 December 2018, between the Government of Mongolia and Oyu Tolgoi LLC, including the amendment to the PSFA dated 26 June 2020. Electricity Supply Agreement dated 26 January 2022, between Southern Region Electricity Distribution Network SOSC, National Power Transmission Grid SOSC, National Dispatching Center LLC and Oyu Tolgoi LLC. In terms of key government permits, Oyu Tolgoi LLC secured a land use permit until 2035 and water use permit until 2039 as well as the mineral rights. History Oyu Tolgoi was first discovered in 1996. Construction began in late 2009 after signing of an Investment Agreement with the Government of Mongolia, and first concentrate was produced in 2012. First sales of concentrate were made to Chinese customers in 2013. The first drawbell of the Hugo North underground mine was fired in 2022. In December 2022, Rio Tinto acquired 100% ownership of TRQ  Sustainable production from underground commenced in March 2023. Property description/type of mine Ore Reserves have been reported at the Oyut and Hugo North Deposits. The Oyut deposit is currently mined as an open pit using a conventional drill, blast, load, and haul method. The Hugo North deposit is currently being developed as an underground mine. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Consists of a series of porphyry deposits containing copper, gold, silver, and molybdenum. Processing plants and other available facilities One copper concentrator with a nominal feed capacity of 100 ktpd currently comprising two SAG mills, four ball mills, rougher and cleaner flotation circuits and up to 1 Mtpa copper concentrate capacity. Other major facilities that support the isolated operations include maintenance workshops, heating plant, sealed airstrip and terminal, and camp facilities with up to 6,000 person capacity to accommodate current operations and the underground construction project. Underground infrastructure in place includes several shafts for ore haulage, personnel haulage and ventilation plus a conveyor decline to surface and associated surface infrastructure. Power source Oyu Tolgoi obtains its electricity from the Western Grid of the Inner Mongolia Autonomous Region (IMAR) in the People's Republic of China. This power is delivered through a cross- border 220kV double-circuit transmission line. The electricity is provided by Inner Mongolia Power International Cooperation Co., Ltd (IMPIC), a subsidiary of Inner Mongolia Power (Group) Co., Ltd. This company is responsible for the ownership and operation of IMAR's Western Grid. The current power supply agreement is a collaborative arrangement involving IMPIC and the National Power Transmission Grid SOSC (NPTG) of Mongolia, which holds the necessary import license. Additionally, Oyu Tolgoi maintains an on-site diesel generator that functions as a 24/7 standby emergency power source.

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Copper continued

Projects

Property Resolution Ownership 55% Rio Tinto, 45% BHP Operator Rio Tinto Location Superior, Arizona, Pinal County, US	Access and infrastructure Road, rail and water pipeline. Title/lease/acreage Unpatented mining claims: –2,242 unpatented claims –44,840 acres To hold the unpatented lode/placer mining claims, a ‘Notice of Intent to Hold’ and a Maintenance Fee is filed annually for each claim with the Bureau of Land Management. These claims are also recorded in the Arizona counties of Pinal and Gila. Resolution Copper Mining LLC (RCML) have a total of 55 mineral exploration permits: eight permits with a total 4162.89 acres in exploration areas and 47 permits with a total 23,046.63 acres in tailings, tailings corridor, and tailings buffer areas. RCML have a total of seven special land use permits with a total of 5840.60 acres in stream monitoring, groundwater monitoring, and tailings surface investigation areas. Fee simple owned property: 12,631 acres. Key permit conditions Resolution is in the permitting and study stage of the project. It is currently at the end of a multi-year process to complete its Environmental Impact Statement under the National Environmental Protection Act. Future permits will be required for operations such as air quality permits and aquifer protection permits.	History The Magma Vein (formerly Silver Queen) was discovered in the 1870s and underground mining continued at the Magma Mine until 1998. In 1996, the Resolution deposit was discovered via an underground drillhole directed south from the Magma Mine workings. Kennecott Exploration (Rio Tinto) entered the project in 2001 and through an exploration “earn-in” agreement became operator in 2004. Property description/type of mine Block cave underground mining method. This Property is considered an exploration stage property for SK-1300 reporting purposes. Type of mineralisation Porphyry copper and molybdenum deposit. Processing plants and other available facilities Water treatment and reverse osmosis plant, historic tailings impoundments from the Magma Mine No. 9 and No. 10 ventilation shafts. Power source 115kV power lines to East and West Plant sites with supply contract with Salt River Project (SRP).
Property Winu Ownership 100% Rio Tinto Operator Rio Tinto Location Great Sandy Desert, Western Australia, Australia	Access and infrastructure Road is the primary means of access. Flights are being trialled on the gravel airstrip. Title/lease/acreage Exploration Licence E45/4833 hosts the deposit. Several Miscellaneous Licences cover the road access route, associated roads and the emergency-use airstrip. A Mining Lease Application (M45/1288; 7,500 hectares) has been made and is awaiting formal approval. Key permit conditions Annual rental payments for licences are required under the Western Australian Mining Act 1978, along with other standard reporting obligations relating to expenditure and works undertaken on the exploration licence. History The exploration licence was granted to Rio Tinto in October 2017 and Winu was discovered in December 2017. The first Inferred Mineral Resource was announced in July 2020 and updated to an Indicated and Inferred Mineral Resource in February 2022.	Property description/type of mine Winu is currently undergoing technical studies and all required stakeholder negotiations and applications to secure the necessary approvals for a potential open pit mining operation. This Property is considered an exploration stage property for SK-1300 reporting purposes. Type of mineralisation Copper-gold-silver mineralisation hosted within sulphide breccias and quartz veins. A supergene enrichment profile caps most of the primary mineralisation. Processing plants and other available facilities Winu comprises camp facilities for up to 112 people, unimproved access roads and trails, and a gravel airstrip. Power source Power is provided by diesel generators.

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Property La Granja Ownership 45% Rio Tinto, 55% First Quantum Minerals Operator First Quantum Minerals Location Cajamarca, Northern Peru Access and infrastructure Mountain road access only, six hours from Chiclayo. Title/lease/acreage The present La Granja Mining Concession grants its titleholders the right to explore and exploit all existing mineral resources within the 3,900 hectares it covers. Key permit conditions The Transfer Agreement (in respect of the acquisition of the La Granja mineral concession dated 31 January 2006, between La Granja Limitada S.A.C. (formerly known as Rio Tinto Minera Peru Limitada S.A.C.) and Activos Mineros S.A.C. requires an annual fee ($5 million per semester split by the Peruvian Government 50:50 between the special federal government fees and the establishment of a social fund). Title is subject to completion and delivery of a feasibility study (FS), and implementation of a mine subject to approval of the FS by the Peruvian Government within the timelines established in the Transfer Agreement. The Transfer Agreement was extended in April 2023 and is scheduled to expire (delivery of FS) in January 2028. History Rio Tinto received the Mining Concession in 2006, after BHP and Cambior had returned the leases to the Peruvian Government. Numerous studies have been completed by Rio Tinto, up to pre-feasibility study. In August 2023, Rio Tinto and First Quantum Minerals announced the completion of a transaction that will work to unlock the development of the La Granja project. Under the terms of the transaction, First Quantum Minerals acquired a 55% interest in the project and became the project operator, assuming all key permit obligations. Property description/type of mine La Granja is currently undergoing technical studies and engagement with host communities, local and national governments focused on development of a potential open pit mining operation. This Property is considered an exploration stage property for SK-1300 reporting purposes. Type of mineralisation Porphyry copper and associated skarn deposits, with high grade breccias with minor silver, and molybdenum. Processing plants and other available facilities La Granja comprises an exploration camp and water treatment infrastructure.  Power source Currently powered by diesel generators. An upgraded power supply is required for development of the asset.

Production, Mineral Reserves, Mineral Resources and Operations

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Group mines as at 31 December 2023

Minerals

Production properties

Property Rio Tinto Borates – Boron Ownership 100% Rio Tinto Operator Rio Tinto Location Boron, California, US	Access and infrastructure Road and rail. Title/lease/acreage Land holdings include 13,493 acres (owned, including mineral rights) for the mining operation, plant infrastructure and tailings storage facility. Key permit conditions Boron operations currently have all State and Federal environmental and operational permits in place to continue the mining and processing operation. Regular updates to permits are ongoing. History Deposit discovered in 1906, underground mining operations began in 1925, three underground mining operations were consolidated and the mining method switched to open pit mining in 1956. Assets were acquired by Rio Tinto in 1967.	Property description/type of mine Open pit. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Sedimentary sequence of tincal and kernite containing interbedded claystone enveloped by facies consisting of ulexite and colemanite bearing claystone, and barren claystone. Processing plants and other available facilities Boron operations consists of the open pit mine, an ore crushing and conveying system, two process plants (Primary Process and Boric Acid Plant), shipping facility and tailings storage facilities. Power source On-site co-generation units and local power grid.
Property Rio Tinto Iron and Titanium (RTIT) Quebec Operations – Lac Tio Ownership 100% Rio Tinto Operator Rio Tinto Location Havre-Saint-Pierre, Quebec, Canada	Access and infrastructure Rail, road and port (St Lawrence River). Title/lease/acreage A total of 6,534 hectares of licences including two mining concessions of total 609ha, granted by Province of Quebec in 1949 and 1951 which, subject to certain Mining Act restrictions, confer rights and obligations of an owner. Key permit conditions The property is held under Quebec provincial government mining concession permits (Concession minière No 368 and 381). Each is of one year duration renewable as long as the mine is in operation. RTIT Quebec Operations – Lac Tio have also a number of claims (exclusive exploration permits) covering ilmenite occurrences in the region of the mine. These claims are renewable every two years.	History Production started 1950; interest acquired in 1989. Property description/type of mine Open pit. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Magmatic intrusion. Processing plants and other available facilities Lac Tio has a crushing facility, dedicated railway, stockpile at the train terminal, ship loader, office buildings at the mine and at the terminal and waste dumps. Power source Supplied by Hydro-Québec at regulated tariff.
Property QIT Madagascar Minerals (QMM) Ownership QIT Madagascar Minerals is 80% owned by Rio Tinto and 20% owned by the Government of Madagascar Operator Rio Tinto Location Fort-Dauphin, Madagascar	Access and infrastructure Road and port. Title/lease/acreage Mining lease covering 56,200ha, granted by central government. Key permit conditions The permit has a validity of 30 years as of 12 December 1996. Additional renewal for 10-years each period are granted at QMM’s request. An annual fee is payable to government authorities following notification at the beginning of January. History Exploration project started in 1986; construction approved 2005. Ilmenite and zirsil production started 2008. QMM intends to extract ilmenite and zirsil from heavy mineral sands over an area of about 6,000 hectares along the coast over the next 40 years.	Property description/type of mine Mineral sand dredging. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Coastal mineralised sands. Processing plants and other available facilities QMM has an operating Dredge, Dry Mine Unit, Heavy Mineral Concentrator, Mineral Separation Plant, Port and bulk loading facilities. Power source On-site heavy fuel oil generators; wind and solar project agreements with independent power producer Crossboundary Energy are expected to take the asset to 50% renewable energy by 2024. The 8MW photovoltaic (PV) solar plant and 8.25 MWh lithium-ion battery energy storage system were successfully commissioned in 2023, and the mine received its first renewable electricity supply. Construction of the 16MW wind project began in the third quarter of 2023 and is scheduled for completion by 2025.

Mines and production facilities continued

332 Annual Report on Form 20-F 2023 | riotinto.com

Property Richards Bay Minerals (RBM) (Richards Bay Mining (Pty) Limited and Richards Bay Titanium (Pty) Limited) Ownership RBM is a joint venture between Rio Tinto (74%) and Blue Horizon – a consortium of investors and our host communities Mbonambi, Sokhulu, Mkhwanazi and Dube (24%). The remaining shares are held in an employee trust (2%). Operator Rio Tinto Location Richards Bay, KwaZulu-Natal, South Africa	Access and infrastructure Rail, road and port. Title/lease/acreage Mineral rights for Reserve 4 and Reserve 10 issued by South African State and converted to new order mining rights from 9 May 2012. Mining rights run until 8 May 2041 and covers 11,645ha, including the mined Tisand area. Key permit conditions RBM operates in three lease areas, Tisand, Zulti North and Zulti South, by means of a notarial deed. Tisand (which contains the stockpiled tails) and Zulti North leases are held by Richards Bay Mining (Pty) Ltd. RBM is owned by a consortium of local communities and businesses in line with South Africa’s Broad-Based Black Economic Empowerment legislation. History Production started 1977; initial interest acquired 1989. Fifth mining plant commissioned in 2000. One mining plant decommissioned in 2008. In September 2012, Rio Tinto doubled its holding in RBM to 74% following the acquisition of BHP Billiton’s entire interests.	Property description/type of mine Mineral sand dredging. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Coastal mineralised sands. Processing plants and other available facilities RBM manages and operates several dredges, dry mining units, heavy mineral concentrators and a mineral separation plant. RBM also has a smelter with furnaces to produce titania slag, pig iron in addition to rutile and zircon. Power source Contract with ESKOM.
Property Iron Ore Company of Canada (IOC) Ownership IOC is a joint venture between Rio Tinto (58.7%), Mitsubishi Corporation (26.2%) and the Labrador Iron Ore Royalty Corporation (15.1%). Operator Rio Tinto Location Labrador City,  Newfoundland and Labrador, Canada	Access and infrastructure –Railway and port facilities in Sept-Îles, Quebec (owned and operated by IOC). –Public highway. –Public airport. Title/lease/acreage Mining leases, surface rights and a tailings disposal licence are held by the Labrador Iron Ore Royalty Corporation (LIORC), under the Labrador Mining and Exploration Act. LIORC subleases these rights to IOC. The mining leases cover 10,356ha, the surface rights cover 8,805ha and the tailings licence covers 2,784ha. These sub-leased rights are valid until 2050. IOC also directly holds three small mining leases, but none produce saleable products. In addition to the above rights, IOC also holds a number of mineral licences, either directly or under sub-lease from LIORC. Key permit conditions IOC holds numerous permits with the Federal, provincial and local governments, covering all aspects of the operation. Key permit conditions include: –Maintaining effluent quality within MDMER criteria –Maintaining air quality criteria specified in the certificate of approval (for dust, NOx, SO2, CO) –Prudent resource management –Progressive rehabilitation –Monitoring groundwater quality around permitted landfill –Restricting tailings discharge to the permitted area.	History Interest acquired in 2000 through acquisition of North Ltd. Current operation began in 1962 and has processed over one billion tonnes of crude ore. Annual capacity 23 Mt of concentrate of which 12-13Mt can be pelletised. Property description/type of mine Open pit. This property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Oxide iron (specular hematite and magnetite). Processing plants and other available facilities Concentrator (gravity and magnetic separation circuits), pellet plant, warehouses, workshops, heating plant and ore delivery system (crusher/conveyor and automated train system). Explosives plant, train loadout facilities, rail line (Labrador City to Sept-Îles), stockyards and shiploaders. Power source Supplied by Newfoundland and Labrador Hydro for the Labrador City operations and by Hydro-Québec and the IOC owned SM2 power station for the Sept-Îles operations.

Production, Mineral Reserves, Mineral Resources and Operations

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Group mines as at 31 December 2023

Minerals continued

Property Diavik Ownership 100% owned by Diavik Diamond Mines (2012) Inc. Operator Diavik Diamond Mines (2012) Inc. is a Yellowknife-based Canadian subsidiary of Rio Tinto plc in London, UK Location Northwest Territories (NWT), Canada Access and infrastructure Airstrip and winter road access. Title/lease/acreage Three mineral rights leases with a total acreage of 8,016 (3,244ha). Mining leases are issued by the NWT Government. One lease was renewed in 2017 and two leases were renewed in February 2018. The new leases will expire after 21 years. Key permit conditions Our key permit conditions are local employment, procurement and benefit sharing commitments, environmental compliance and reporting, environmental security and closure and rehabilitation planning, and payment of taxes and government royalties. History Deposits discovered in 1994-95. Construction approved in 2000. Diamond production started in 2003. Fourth pipe commenced production in 2018. Mine life through early 2026. In November 2021, Rio Tinto became the sole owner of Diavik Diamond Mine. This followed the completion of a transaction for Rio Tinto’s acquisition of the 40% share held by Dominion Diamond Mines in Diavik, with the Court of Queen’s Bench of Alberta’s approval. Property description/type of mine Open pit and underground operations (blast-hole stoping and sub-level cave methods). This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Diamondiferous kimberlite deposit. Processing plants and other available facilities Includes processing plant and accommodation facilities on-site. Power source On-site diesel generators; installed capacity 44MW and 9.2MW of wind capacity.

Mines and production facilities continued

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Minerals

Projects

Property Rincon Ownership 100% Rio Tinto Operator Rio Tinto Location Rincon Salar, Salta, Argentina	Access and infrastructure Road and air. Title/lease/acreage Two separate mineral leases for a total of 82,905ha, the largest one being the Grupo Minero Proyecto Rincon with 80,032ha. Mining concessions are issued by the Provincial Mining Court and have lifelong exploitation rights. Key permit conditions Key permit conditions are environmental compliance and reporting, including independent authorisations for industrial water and brine extraction, spent brine disposal facilities, processing plant and ancillary infrastructure. History Rincon Salar was initially explored by Admiralty Resources NL, who acquired mining leases covering approximately 85% of the Salar in 2001. Admiralty demerged the project into a separate Australian Securities Exchange (ASX) listed entity called Rincon Lithium Ltd in October 2007, and sold the company to the private equity group Sentient Equity Partners in December 2008. The project was under evaluation by Sentient until the sale of the property to Rio Tinto in March 2022.	Property description/type of mine Mining will comprise brine extracted from a production wellfield and fed to a central processing facility for lithium recovery. Type of mineralisation Lithium mineralisation occurs as a brine within a sedimentary sequence in a mature salar, composed of halite, volcaniclastic sand and variable amounts of clay/sand. The brine is hosted in two separate aquifers: an upper unconfined fractured halitic aquifer and a lower semi-confined aquifer composed mainly of volcaniclastic sand. Processing plants and other available facilities The project includes a wellfield for brine extraction and a chemical plant for the production of lithium carbonate, a spent brine disposal facility, wellfield for the extraction of process water and water pre-treatment equipment, camp and office buildings, warehouses and loading/unloading facilities. Power source Connected to the national electric grid with access to power from nearby solar farms. Option for the construction of a solar farm under agreement with a third party on a build/own/operate model under consideration.
Property Jadar Ownership 100% Rio Tinto Operator Rio Tinto Location Loznica town, Serbia	Access and infrastructure Road and rail. Title/lease/acreage The last extension of the Jadar exploration licence expired on 14 February 2020, with no legal basis for further extension of its term. During the feasibility study the project has completed the Elaborate on Resources and Reserves (declaration based on Serbian law), obtained the Certificate on Resources and Reserves on 6 January 2021 and has submitted the request for exploitation field licence (with Serbian Feasibility Study being one of the supporting documents to this request). In January 2022, the Government of Serbia cancelled the Spatial Plan for the Jadar project and required all related permits to be revoked. Key permit conditions The project is governed by two main pieces of Serbian legislation: Mining Law is administered by the Ministry of Mining and Energy (MME) and Planning and Construction Law is administered by the Ministry of Construction, Transportation and Infrastructure (MCTI). The permitting process base case foresees the following: –Mine, beneficiation plant and mine surface facilities are subject to the permitting procedure of MME –Processing plant, industrial waste landfill and infrastructure (rail, roads, power and water pipelines) are subject to the unified permitting procedure under MCTI.	History The Jadar deposit was discovered in 2004 by Rio Tinto Exploration geologists during a regional exploration program for borates in the Balkans. The deposit is in its majority composed of a mineral new to science named Jadarite with high concentrations of lithium and boron. Resource definition and processing workflow development and testing were conducted for over a decade. The pre-feasibility study (PFS) completed in July 2020 has shown that the Jadar project has the potential to produce both battery grade lithium carbonate and boric acid. In January 2022, the Government of Serbia cancelled the Spatial Plan for the Jadar project and required all related permits to be revoked. Property description/type of mine Underground mine. This Property is considered an exploration stage property for SK-1300 reporting purposes. Type of mineralisation Jadarite mineralisation is present in three broad zones containing stratiform lenses of variable thickness. These units are hosted in a much thicker gently dipping sequence mainly composed of fine-grained sediments affected by syn and post depositional faulting. Processing plants and other available facilities The planned site layout includes a concentrator to beneficiate the primary ore, a chemical plant to produce boric acid and lithium carbonate, paste plant, water and waste treatment plants, surface waste storage (dry stack), railroad spur and warehouses for product storage and loading/unloading, and office buildings. Power source Connected to the national electric grid. Electricity planned to be sourced from nearby hydroelectrical power plant.

Production, Mineral Reserves, Mineral Resources and Operations

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Group mines as at 31 December 2023

Aluminium

Production properties

Property CBG Sangaredi Ownership Rio Tinto Group 22.95%, Guinean Government 49%, Alcoa 22.95%, Dadco Investments Limited 5.1% Operator La Compagnie des Bauxites de Guinée (CBG) Location Sangaredi, Guinea	Access and infrastructure Road, air and port. Sangaredi-Kamsar railway (leasing rail infrastructure from ANAIM, wholly-owned by Government of Guinea). Title/lease/acreage Mining concession expires in 2040. Leases comprise 2,939 km2. Key permit conditions The obligations of CBG relative to health and safety of workers and to the environment and to the rehabilitation of mined out areas are subject to the Mining Code (2011) and Environmental Code of the Republic of Guinea. History CBG is a joint venture created in 1963 and is registered in US (Delaware). Bauxite mining commenced in 1973. Shareholders are 51% Halco and 49% Government of Guinea. Rio Tinto holds a 45% interest in Halco. Expansion of the CBG bauxite mine, processing plant, port facility and associated infrastructure is currently near completion with ramp up to 18.5 Mtpa underway. In 2015, CBG entered into an agreement to share the rail infrastructure in Multi-User Operation Agreement (MUOA) with other bauxite companies, GAC (EGA) and COBAD (RUSAL).	Property description/type of mine Open cut. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Bauxite. Processing plants and other available facilities The Sangaredi site is an open cut mine including the following operations: stripping, drilling, blasting, loading, hauling. Then, the bauxite is transported by railway cars approximately 135 km away from Sangaredi to Kamsar. In Kamsar, the installations include the following assets: locomotive repair shop, railway cars unloader, primary crusher, secondary crusher, scrubbers, conveyors, stacker, reclaimer, bauxite dryers, dry bauxite storage, bauxite sampling tower, power house, wharf, ship loader, etc. The crushing plant is used only to reduce oversize material – no screening required. Four bauxite dryers are installed in order to reduce the moisture content of the bauxite before shipping. Power source On-site generation (fuel oil).
Property Gove Ownership 100% Rio Tinto Operator Rio Tinto through Rio Tinto Alumina Gove P/L Location Gove, Northern Territory, Australia	Access and infrastructure Road, air and port. Title/lease/acreage All leases were renewed in 2011 for a further period of 42 years. The residue disposal area is leased from the Arnhem Land Aboriginal Land Trust. The Northern Territory Government is the lessor of the balance of the leases; however, on expiry of the 42- year renewed term, the land subject to the balances of the leases will all vest to the Arnhem Land Aboriginal Land Trust. Leases comprise 233.5 km2. Key permit conditions Key permit conditions are prescribed by the Northern Territory Government in the form of a Mine Management Plan (MMP). The current MMP runs for a period of 12 years, until 2031, and authorises all activities at the operation. Lease payments are prescribed by the terms of the relevant leases. History Bauxite mining commenced in 1970, feeding both the Gove refinery and export market, capped at 2 million tonnes per annum. Bauxite export ceased in 2006 with feed intended for the expanded Gove refinery. Bauxite exports recommenced in 2008 and will increase in the coming years following the curtailment of the refinery production in 2014 and a permanent shut decision made by the Board of Rio Tinto in October 2017. Current annual production capacity is 12.5 Mt on a dry basis.	Property description/type of mine Open cut. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Bauxite. Processing plants and other available facilities Crushing plant only to reduce oversize material – no screening required. Power source On-site diesel fired power station.

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336 Annual Report on Form 20-F 2023 | riotinto.com

Property MRN Porto Trombetas Ownership MRN’s shareholders are: Rio Tinto (22%), Glencore (45%) and South32 (33%) Operator Mineração Rio do Norte (MRN) is a non- managed JV. All decisions are approved by shareholders BoD Location Porto Trombetas, Para, Brazil	Access and infrastructure Air and port. Title/lease/acreage Mining concession granted by Brazilian Mining Agency (ANM), following the Brazilian mining code with no expiration date. The current 44 MRN mining leases cover 22 major plateaus, which spread across 143,000ha and all of them have the status of a mining concession. Key permit conditions With the exception of concessions from Amazonas State, the MRN mining leases are within the Saracá-Taquera National Forest, a preservation environmental area. However, the right of mining is preserved initially by the Federal law which created the National Forest (that is subsequent to mining concessions), as well by the management plan, which acknowledges a formal mining zone within the confines of the National Forest. Environmental licensing is granted by Brazilian Environmental Agency (IBAMA) for East Zone. MRN is working with IBAMA on permitting to extend the life of the mine from East Zone to West Zone.	History Mineral extraction commenced in 1979. Initial production capacity was 3.4 Mtpa. From 2003, production capacity went up to 16 Mtpa on a dry basis. and in 2008, up to 18 Mtpa. Due to market and tailings facilities restrictions, the planned production is 12 Mtpa on dry basis (up to 2027) and from 2027 to 2040 is 12.5 Mtpa on a dry basis. The deposit has two mine planning sequences: East Zone (1979-2027) and West Zone Phase 1 (2027-2040). On 30 November 2023 Rio Tinto completed an acquisition of Companhia Brasileira de Alumínio’s 10% equity in the MRN bauxite mine in Brazil, raising the Rio Tinto stake from 12% to 22%. Property description/type of mine Open cut. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Consists of a series of bauxite tabular deposits. Processing plants and other available facilities The beneficiation process is formed by a primary crusher, conveyors, scrubbers, secondary crushers, screenings, hydrocyclones and vacuum filters. The superfines tailings are pumped to a tailings storage facility. Power source On-site generation fuel (oil + diesel).
Property Weipa/Ely Ownership 100% Rio Tinto Operator Rio Tinto through Rio Tinto Alumina Weipa P/L Location Weipa, Queensland, Australia	Access and infrastructure Road, air and port. Title/lease/acreage The Queensland Government Comalco (ML7024) lease expires in 2042 with an option of a 21-year extension, then two years’ notice of termination; the Queensland Government Alcan lease (ML7031) expires in 2048 with a 21-year right of renewal with a two-year notice period. Leases comprise 2,716.9 km2 (ML7024 = 1340.8 km2; ML7031 = 1376.1 km2). This property with the associated 2 leases, includes the deposits known as Andoom, East Weipa, Amrun, Norman Creek and North of Weipa. Key permit conditions The respective leases are subject to the Comalco Agreement Act (Comalco Agreement) and Alcan Agreement Act (Alcan Agreement); the relevant State Agreements for the Weipa operations. Key permit conditions are prescribed by the Queensland Government in the relevant Environmental Authority applicable to each lease (ML7024 and ML7031, respectively). Lease payments are subject to the terms of the leases and the respective State Agreements.	History Bauxite mining commenced in 1961 at Weipa. Major upgrade completed in 1998. Rio Tinto interest increased from 72.4% to 100% in 2000. In 1997, Ely Bauxite Mining Project Agreement signed with local Aboriginal land owners. Bauxite Mining and Exchange Agreement signed in 1998 with Comalco to allow for extraction of ore at Ely. The Western Cape Communities Co-Existence Agreement, an ILUA, was signed in 2001. Following the ramp up to full production of Amrun the current annual production of the Weipa mine is 35.5 Mt. Property description/type of mine Open cut. This Property is considered a production stage property for SK-1300 reporting purposes. Type of mineralisation Bauxite. Processing plants and other available facilities Andoom, East Weipa and Amrun – wet crushing and screening plants to remove ultra fine proportion. Power source On-site generation (diesel) supplemented by a solar generation facility.

Production, Mineral Reserves, Mineral Resources and Operations

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Other Operations

Project

Property Simandou, Blocks 3 & 4 Ownership 85% Simfer Jersey; 15% Republic of Guinea Simfer Jersey is a joint venture between Rio Tinto (53%) and CIOH (47%), a Chinalco-led joint venture with Baowu, CCC Group and CRC Group. Operator Rio Tinto (mine) Location The Simandou South Mining Concession is located ~550km east- southeast of Conakry in the Republic of Guinea Access and infrastructure The site has road access and is readily accessible for power, water, and additional infrastructure requirements. Camp facilities are in place with a current workforce involved in further geological sampling and early construction works for the project. Planned expansion of the camp facilities including a dedicated airstrip are planned for the project construction phase. Iron ore extracted from the Simfer mine concession (and Simandou Blocks 1 & 2 which are owned by Winning Consortium Simandou [WCS]) will be exported through a rail and port infrastructure to be co-developed by the State, Simfer Jersey and WCS. It includes a purpose-built port facility to be constructed at Morebaya estuary (south of Conakry) to be accessed by a 536km main rail line with rail spurs connecting our Concession (68km) and WCS’s (16km) respectively. The main rail line will have an initial capacity of up to 120 Mtpa. The ultimate owner and operator of the infrastructure will be the Compagnie du Transguinéen (CTG) (The TransGuinean Company), an incorporated joint venture between Simfer Jersey (42.5%), WCS (42.5%) and the State (15%). Title/lease/acreage Simandou South Mining Concession was granted by Presidential Decree on 22 April 2011 under the conditions of the Amended and Consolidated Basic Convention (ACBC), which was ratified by the Guinean National Assembly on 26 May 2014. The Concession duration is 25 years, renewed automatically for a further period of 25 years followed by further ten year periods in accordance with the Guinean Mining Code and the ACBC. The Concession covers an area of 369km2. Simfer also holds a BOT Convention to enable development of the rail and port infrastructure. Simfer has signed agreements with the State and WCS, the owner of Simandou Blocks 1 & 2 deposits, to enable co-development of the rail and port infrastructure for the Simandou iron ore projects. The Co-Development Convention, which, along with bipartite amendments for each of the Simfer and WCS Mine Conventions, adapts the existing investment frameworks of Simfer and WCS. These conventions require ratification and are subject to a number of conditions, including regulatory approvals. Key permit conditions In addition to the Concession, the ACBC, as amended by the mine bipartite agreement, establishes the legal regime for the mine project and sets out Simfer’s key legal rights and protections. The Simandou mine SEIA was approved in 2012 and has since been maintained in accordance with applicable law. An updated SEIA for the mine and rail spur was submitted for regulatory review in July 2023 and an update to the SEIA for the port was submitted in November 2023. History Simfer submitted a bankable feasibility study to the State in 2016, with further feasibility studies for mine and infrastructure to reflect the infrastructure co-development arrangements completed in 2022, 2023 and 2024, and which are currently pending approval by the State as part of the infrastructure co-development arrangements. Property description/type of mine Open pit. This Property is considered a development stage property for SK-1300 reporting purposes. Type of mineralisation Supergene-enriched itabirite hosted iron ore deposits. The deposits are part of a supracrustal belt with the banded iron formation proto-ore likely deposited in a shallow marine setting within a forearc basin. The age of deposition is considered to be between 2.7Ga and 2.2Ga. Processing plants and other available facilities Current plans are for the run-of-mine ore to be coarsely crushed at the Ouéléba mine site at a maximum rate of 60 Mtpa phase 1 capacity to P100 of -100 mm through two identical primary and secondary crushing stations in a staged arrangement. The coarsely crushed ore will then be conveyed to the mine stockyard. The ore will be reclaimed from the stockpiles and conveyed to the train load-out facility for loading into trains which transport materials to the port facility where it will be likely shipped by bulk carrier to several ports including in China. Other major facilities that will support the operations include power generation, explosives facilities, fuel and lubricants facilities, administration buildings, workshops and a permanent village. Power source Current designs contemplate that power for the mine site and other areas will be supplied by a hybrid power plant consisting of diesel generators and solar generation powered fuel station. Further, there is a plan to connect the facility to the power grid local operator Électricité de Guinée. This will require an approximately 20km connection line to the main grid once it is available and would substantially reduce energy costs and fuel consumption.

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Group smelters, refineries and remelting & casting facilities  (Rio Tinto’s interest 100% unless otherwise shown)

Smelter/refinery/facility	Location	Title/lease	Plant type / Product	Capacity (based on 100% ownership)
Aluminium
Alma	Alma, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium rod, t-foundry, molten metal, high purity, remelt	473,000 tonnes per year aluminium
Alouette (40%)	Sept-Îles, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium high purity, remelt	627,000 tonnes per year aluminium
Arvida	Saguenay, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium billet, molten metal, remelt	174,000 tonnes per year aluminium
Arvida AP60	Saguenay, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium high purity, remelt	60,000 tonnes per year aluminium
Bécancour (25.1%)	Bécancour, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium slab, billet, t-foundry, remelt, molten metal	460,000 tonnes per year aluminium
Bell Bay	Bell Bay, Northern Tasmania, Australia	100% freehold	Aluminium smelter producing aluminium slab, molten metal, small form and t-foundry, remelt	195,000 tonnes per year aluminium
Boyne Smelters (59.4%)	Boyne Island, Queensland, Australia	100% freehold	Aluminium smelter producing aluminium billet, EC grade, small form and t-foundry, remelt	584,000 tonnes per year aluminium
ELYSIS (48.24%)	Saguenay, Quebec, Canada	100% freehold	Aluminium zero-carbon smelting pilot cell producing aluminium high purity	275 tonnes per year aluminium
Grande-Baie	Saguenay, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium slab, molten metal, high purity, remelt	235,000 tonnes per year aluminium
ISAL	Reykjavik, Iceland	100% freehold	Aluminium smelter producing aluminium remelt, billet	212,000 tonnes per year aluminium
Jonquière (Vaudreuil)	Jonquière, Quebec, Canada	100% freehold	Smelter grade alumina	1,560,000 tonnes per year alumina
Kitimat	Kitimat, British Columbia, Canada	100% freehold	Aluminium smelter producing aluminium slab, remelt, high purity	432,000 tonnes per year aluminium
Laterrière	Saguenay, Quebec, Canada	100% freehold	Aluminium smelter producing aluminium slab, remelt, molten metal	255,000 tonnes per year aluminium
Queensland Alumina (80%)	Gladstone, Queensland, Australia	73.3% freehold; 26.7% leasehold (of which more than 80% expires in 2026 and after)	Refinery producing alumina	3,950,000 tonnes per year alumina
São Luis (Alumar) (10%)	São Luis, Maranhão, Brazil	100% freehold	Refinery producing alumina	3,830,000 tonnes per year alumina
Sohar (20%)	Sohar, Oman	100% leasehold (expiring 2039)	Aluminium smelter producing aluminium, high purity, remelt	395,000 tonnes per year aluminium
Tiwai Point (New Zealand Aluminium Smelters) (79.4%)	Invercargill, Southland, New Zealand	19.6% freehold; 80.4% leasehold (expiring in 2029 and use of certain Crown land)	Aluminium smelter producing aluminium billet, slab, small form foundry, high purity, remelt	373,000 tonnes per year aluminium
Tomago (51.6%)	Tomago, New South Wales, Australia	100% freehold	Aluminium smelter producing aluminium billet, slab, remelt	590,000 tonnes per year aluminium
Yarwun	Gladstone, Queensland, Australia	97% freehold; 3% leasehold (expiring 2101 and after)	Refinery producing alumina	3,250,000 tonnes per year alumina
Matalco Bluffton Manufacturing (50%)	Bluffton, Indiana, US	100% freehold	Remelt and manufacture of aluminium billet and slab	104,000 tonnes per year
Matalco Brampton Manufacturing (50%)	Brampton, Ontario, Canada	100% freehold	Remelt and manufacture of aluminium billet	113,000 tonnes per year
Matalco Canton Manufacturing (50%)	Canton, Ohio, US	100% freehold	Remelt and manufacture of aluminium billet	59,000 tonnes per year
Matalco Franklin Manufacturing (50%)	Franklin, Kentucky, US	100% freehold	Remelt and manufacture of aluminium slab	177,000 tonnes per year
Matalco Lordstown Manufacturing (50%)	Lordstown, Ohio, US	100% freehold	Remelt and manufacture of aluminium billet	159,000 tonnes per year
Matalco Shelbyville Manufacturing (50%)	Shelbyville, Kentucky, US	100% freehold	Remelt and manufacture of aluminium billet	154,000 tonnes per year
Matalco Wisconsin Rapids Manufacturing (50%)	Wisconsin Rapids, Wisconsin, US	100% freehold	Remelt and manufacture of aluminium billet and slab	104,000 tonnes per year

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 339

Group smelters and refineries and remelting & casting facilities (Rio Tinto’s interest 100% unless otherwise shown)

Smelter/refinery/facility	Location	Title/lease	Plant type / Product	Capacity (based on 100% ownership)
Copper
Rio Tinto Kennecott	Magna, Salt Lake City, Utah, US	100% freehold	Flash smelting furnace/Flash convertor furnace copper refinery and precious metals plant	335,000 tonnes per year refined copper
Minerals
Boron	Boron, California, US	100% freehold	Borates refinery	576,000 tonnes per year boric oxide
IOC Pellet plant (58.7%)	Labrador City, Newfoundland and Labrador, Canada	100% freehold (asset), 100% freehold (land) under sublease from Labrador Iron Ore Royalty Corporation for life of mine.	Pellet induration furnaces producing multiple iron ore pellet types	13.5 million tonnes per year pellet
Richards Bay Minerals (74%)	Richards Bay, South Africa	100% freehold	Ilmenite smelter	1,050,000 tonnes per year titanium dioxide slag, 565,000 tonnes per year iron
Rio Tinto Iron and Titanium Quebec Operations - Sorel-Tracy Plant	Sorel-Tracy, Quebec, Canada	100% freehold	Ilmenite smelter	1,300,000 tonnes per year titanium dioxide slag, 1,000,000 tonnes per year iron

Mines and production facilities continued

340 Annual Report on Form 20-F 2023 | riotinto.com

Group power plants (Rio Tinto’s interest 100% unless otherwise shown)

Power plant	Location	Title/lease	Plant type / Product	Capacity (based on 100% ownership)
Iron Ore
Cape Lambert power station (67%)	Cape Lambert, Western Australia, Australia	Lease	Two LM6000PF dual-fuel turbines	80MW
Paraburdoo power station	Paraburdoo, Western Australia, Australia	Lease	Three LM6000PC gas-fired turbines	120MW
West Angelas power station (67%)	West Angelas, Western Australia, Australia	Miscellaneous licence	Two LM6000PF dual-fuel turbines	80MW
Yurralyi Maya power station (84.2%)	Dampier, Western Australia, Australia	Miscellaneous licence	Four LM6000PD gas-fired turbines One LM6000PF gas-fired turbine	200MW
Gudai-Darri Solar Farm	Gudai-Darri, Western Australia, Australia	Miscellaneous licence	Solar PV single-axis tracking	up to 34 MW
Aluminium
Amrun power station	Amrun, Australia	100% leasehold	Diesel generation	24MW
Gladstone power station (42%)	Gladstone, Queensland, Australia	100% freehold	Thermal power station	1,680MW
Gove power station	Nhulunbuy, Northern Territory, Australia	100% leasehold	Diesel generation	24MW
Kemano power station	Kemano, British Columbia, Canada	100% freehold	Hydroelectric power	1,014MW installed capacity
Quebec power stations	Saguenay, Quebec, Canada (Chute-à-Caron, Chute-à-la- Savane, Chute-des-Passes, Chute-du-Diable, Isle- Maligne, Shipshaw)	100% freehold (certain facilities leased from Quebec Government until 2058 pursuant to Peribonka Lease)	Hydroelectric power	3,147MW installed capacity
Weipa power stations and solar generation facility	Lorim Point, Andoom, and Weipa, Australia	100% leasehold	Diesel generation supplemented by solar generation facility	38MW
Yarwun alumina refinery co-generation plant	Gladstone, Queensland, Australia	100% freehold	Gas turbine and heat recovery steam generator	160MW

Production, Mineral Reserves, Mineral Resources and Operations

Annual Report on Form 20-F 2023 | riotinto.com 341

Group power plants (Rio Tinto’s interest 100% unless otherwise shown)

Power plant	Location	Title/lease	Plant type / Product	Capacity (based on 100% ownership)
Copper
Rio Tinto Kennecott power stations	Salt Lake City, Utah, United States	100% freehold	Thermal power station	75MW
			Steam turbine running off waste heat boilers at the copper smelter	31.8MW
			Combined heat and power plant supplying steam to the copper refinery	6.2MW
Minerals
Boron co-generation plant	Boron, California, United States	100% freehold	Co-generation uses natural gas to generate steam and electricity, used to run Boron’s refining operations	48MW
Energy Resources of Australia (86.3%)	Ranger Mine, Jabiru, Northern Territory, Australia	Lease	Five diesel generator sets rated at 5.17MW; one diesel generator set rated at 2MW; four additional diesel generator sets rated at 2MW	35.8MW
IOC power station (58.7%)	Sept-Îles, Quebec, Canada	Statutory grant	Hydroelectric power	22MW
QMM power plant	Fort Dauphin, Madagascar	100% freehold	Diesel generation supplemented by solar generation facility	32MW

Mines and production facilities continued

342 Annual Report on Form 20-F 2023 | riotinto.com

Additional information

Independent Assurance Report	3433 344
Shareholder information	347
US disclosure	354
Contact details	382
Cautionary statement about forward-looking statements	383

Arvida, Canada
	Annual Report on Form 20-F 2023 |  riotinto.com	343

344 Annual Report on Form 20-F 2023 | riotinto.com

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 345

346 Annual Report on Form 20-F 2023 | riotinto.com

Shareholder information

Organisational structure

The Rio Tinto Group consists of Rio Tinto plc

(registered in England and Wales as company

number 719885 under the UK Companies Act

2006 and listed on the London Stock

Exchange), and Rio Tinto Limited (registered

in Australia as ABN 96 004 458 404 under the

Australian Corporations Act 2001 and listed on

the Australian Securities Exchange).

Rio Tinto is headquartered in London with a

corporate office in Melbourne.

Rio Tinto plc has a sponsored American

Depositary Receipts (ADR) facility, with

underlying shares registered with the US

Securities and Exchange Commission (SEC)

and listed on the New York Stock Exchange.

The London Stock Exchange ticker for

Rio Tinto plc is RIO.L, the Australian Securities

Exchange ticker for Rio Tinto Limited is

RIO.AX and the New York Stock Exchange

ticker for the ADR is RIO.N.

Nomenclature and financial data

Rio Tinto plc and Rio Tinto Limited operate

together and are referred to in this report as

Rio Tinto, the Rio Tinto Group or the Group.

These expressions are used for convenience,

since both companies, and other companies in

which they directly or indirectly own

investments, are separate and distinct legal

entities. Likewise, the words “we”, “us”, “our”

and “ourselves” are used in some places to

refer to the companies of the Rio Tinto Group

in general. These expressions are also used

where no useful purpose is served by

identifying any particular company or

companies. We usually omit “Limited”, “plc”,

“Pty”, “Inc.”, “Limitada”, “L.L.C.”, “A.S.” or “SA”

from Group company names, except to

distinguish between Rio Tinto plc and

Rio Tinto Limited. Financial data in US dollars

($) is derived from, and should be read in

conjunction with, the 2023 financial

statements. In general, where we have

provided financial data in other currencies,

it has been translated from the consolidated

financial statements, and is provided solely for

convenience. Exceptions arise where

data has been extracted directly from

source records.

History

Rio Tinto plc was incorporated on 30 March

1962, then called The Rio Tinto-Zinc

Corporation Limited (RTZ), and was formed by

the merger of The Rio Tinto Company Limited

and The Consolidated Zinc Corporation

Limited. The Rio Tinto Company was

incorporated in 1873 to reopen ancient copper

workings in Spain. The Consolidated Zinc

Corporation Limited began operations in the

early twentieth century as part of the

Australian mining industry. Based at Broken

Hill in New South Wales, it began mining

silver, lead and zinc deposits and later

expanded into lead and zinc smelting.

Rio Tinto Limited was incorporated on

17 December 1959, then called The Rio Tinto

Mining Company of Australia Pty Limited.

In 1962 the Australian interests of The

Consolidated Zinc Corporation Limited and

The Rio Tinto Company Limited were merged

to form Conzinc Riotinto of Australia Limited, a

limited liability company under the laws of the

State of Victoria, Australia. In 1980, Conzinc

Riotinto of Australia Limited changed its name

to CRA Limited.

Between 1962 and 1995, both RTZ and CRA

discovered important mineral deposits,

developed major mining projects and grew

through acquisition.

RTZ and CRA began operating in 1995

through a dual-listed companies structure.

In 1997, RTZ became Rio Tinto plc and CRA

became Rio Tinto Limited.

Dual-listed companies structure

In 1995, Rio Tinto shareholders approved the

terms of the dual-listed companies’ merger

(the DLC structure). The aim was to put

shareholders of both companies in

substantially the same position they would be

in if they held shares in a single entity owning

all assets of both companies.

Following the approval of the DLC structure,

both companies entered into a DLC Merger

Sharing Agreement (the Sharing Agreement).

As part of this, both companies agreed to be

managed in a unified way, to share the same

Board of Directors, and to put in place

arrangements to provide shareholders of both

companies with a common economic interest

in the DLC structure.

To achieve this third objective, the Sharing

Agreement fixed the ratio of dividend, voting

and capital distribution rights attached to each

Rio Tinto plc share and each Rio Tinto Limited

share at an Equalisation Ratio of 1:1. This has

remained unchanged ever since, although the

Sharing Agreement makes clear this can be

revised in special circumstances. For example

where certain modifications are made to the

share capital of one company (such as rights

issues, bonus issues, share splits and share

consolidations) but not to the other.

Outside the circumstances specified in the

Sharing Agreement, the Equalisation Ratio

can only be altered with the approval of

shareholders under the class rights action

approval procedure, described in the

voting arrangements section below.

Any adjustments must be confirmed

by the Group’s external auditors.

Consistent with the DLC structure, the

directors of both companies aim to act in

the best interests of Rio Tinto as a whole.

The class rights action approval procedure

exists to deal with instances where there

may be a conflict of interest between the

shareholders of the two companies.

To ensure that the Boards of both companies

are identical, resolutions to appoint or remove

Directors must be put to shareholders of both

companies as Joint Decisions, described in

the voting arrangements section below. The

Articles of Association of Rio Tinto plc and the

Constitution of Rio Tinto Limited make clear

that a person can only be a Director of one

company if he or she is also a Director of the

other. This means that if a person were

removed as a Director of Rio Tinto plc, he or

she would also cease to be a Director of

Rio Tinto Limited.

One consequence of the DLC merger is that

Rio Tinto is subject to a wide range of laws,

rules and regulatory reviews across multiple

jurisdictions. Where these rules differ,

Rio Tinto will comply with the requirements in

each jurisdiction at a minimum.

Dividend arrangements

The Sharing Agreement ensures that

dividends paid on Rio Tinto plc and Rio Tinto

Limited shares are equalised on a net cash

basis without taking into account any

associated tax credits. Dividends are

determined in US dollars (with the exception of

ADR holders, paid in sterling and Australian

dollars) and both companies are required to

announce and pay dividends and other

distributions, or as close to, at the same time

as possible.

The payment of dividends between companies

and their subsidiaries, including the payment

of dividends on the DLC dividend shares,

provides the Group with flexibility to manage

internal funds and distributable reserves to

enable the payment of equalised dividend or

equalised capital distributions.

If the payment of an equalised dividend would

contravene the law applicable to one of the

companies, they can depart from the

Equalisation Ratio. In that situation, the

relevant company must put aside reserves for

payment on the relevant shares at a later date.

Rio Tinto shareholders have no direct rights to

enforce the dividend equalisation provisions of

the Sharing Agreement.

Voting arrangements

In principle, the Sharing Agreement enables

the shareholders of Rio Tinto plc and Rio Tinto

Limited to vote as a joint electorate on any

matters that affect them in similar ways. These

are referred to as Joint Decisions, and include

the creation of new classes of share capital,

the appointment or removal of directors and

auditors, and the receiving of annual financial

statements. All shareholder resolutions that

include Joint Decisions are voted on a poll.

The Sharing Agreement also protects

shareholders of both companies by requiring

joint approval for decisions that do not affect

the shareholders of both companies equally.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 347

These are known as class rights actions,

and are voted on a poll. For example,

fundamental elements of the DLC structure

cannot be changed unless approved

separately by the shareholders of

both companies.

Exceptions to these principles can arise in

situations such as where legislation requires

the separate approval of a decision by the

appropriate majority of shareholders in one

company, and where approval of the matter by

shareholders of the other company is

not required.

Where a matter has been expressly

categorised as either a Joint Decision or a

class rights action, the Directors cannot

change that categorisation. If a matter falls

within both categories, it is treated as a class

rights action. In addition, if an issue is not

expressly listed in either category, Directors

can decide how it should be put to

shareholders for approval.

To support joint voting arrangements, both

companies have entered into shareholder

voting agreements, where a Special Voting

Share is issued to a special purpose company

(SVC) and held in trust for shareholders by a

common trustee. Rio Tinto plc (RTP) has

issued its Special Voting Share (RTP Special

Voting Share) to Rio Tinto Limited (RTL)

Shareholder SVC, while Rio Tinto Limited has

issued its Special Voting Share (RTL Special

Voting Share) to RTP Shareholder SVC.

The total number of votes cast on Joint

Decisions by the shareholders of one

company are decided at a parallel meeting of

the other company. The exact role of these

SVCs is described below.

In exceptional circumstances, certain

shareholders can be excluded from voting at

their respective company’s general meetings.

For example, they may have acquired shares

in the other company in excess of a given

threshold without making an offer for all the

shares in the other company. In this situation,

votes cast by these excluded shareholders

are disregarded.

Following the companies’ general meetings,

the overall results of the voting are announced

to relevant stock exchanges and the media,

and published at riotinto.com

At a Rio Tinto plc shareholders meeting during

which a Joint Decision is considered, each

Rio Tinto plc share carries one vote. The

holder of the Special Voting Share has one

vote for each vote cast by the public

shareholders of Rio Tinto Limited in their

parallel meeting. The holder of the Special

Voting Share must vote in accordance with the

votes cast by public shareholders for and

against the equivalent resolution at the parallel

Rio Tinto Limited shareholders’ meeting. The

holders of Rio Tinto Limited ordinary shares do

not hold voting shares in Rio Tinto plc by virtue

of their holding in Rio Tinto Limited, and

cannot enforce the voting arrangements

relating to the Special Voting Share.

Similarly, at a Rio Tinto Limited shareholders

meeting during which a Joint Decision is

considered, each Rio Tinto Limited share

carries one vote and the holder of its Special

Voting Share will have one vote for each vote

cast by the public shareholders of Rio Tinto plc

in their parallel meeting. The holder

of the Special Voting Share must vote in

accordance with the votes cast for and against

the equivalent resolution at the parallel

Rio Tinto plc shareholders meeting. The

holders of Rio Tinto plc ordinary shares do not

hold any voting shares in Rio Tinto Limited by

virtue of their holding in Rio Tinto plc, and

cannot enforce the voting arrangements

relating to the Special Voting Share.

Capital distribution arrangements

If either company goes into liquidation, the

Sharing Agreement ensures a valuation is

made of the surplus assets of both

companies. If the surplus assets available for

distribution by one company on each of the

shares held by its shareholders exceed the

surplus assets available for distribution by the

other company on each of the shares held by

its shareholders, then an equalising payment

must be made – to the extent permitted by

applicable law – such that the amount

available for distribution on each share held by

shareholders of both companies reflects the

Equalisation Ratio.

The aim is to ensure the shareholders of both

companies have equivalent entitlements to the

assets of the combined Group on a per share

basis, taking account of the Equalisation

Ratio.

The Sharing Agreement does not grant

any enforceable rights to the shareholders

of either company upon liquidation of

either company.

Limitations on ownership of shares and

merger obligations

The laws and regulations of the UK and

Australia impose restrictions and obligations

on persons who control interests in publicly

listed companies in excess of defined

thresholds. These can include an obligation to

make a public offer for all outstanding issued

shares of the relevant company. The threshold

applicable to Rio Tinto plc under UK law and

regulations is 30% and to Rio Tinto Limited

under Australian law and regulations is 20%

on both a standalone and a Joint Decision

basis.

As part of the DLC merger, the Articles

of Association of Rio Tinto plc and the

Constitution of Rio Tinto Limited were

amended with the aim of extending these laws

and regulations to the combined enterprise.

This amendment also ensures that a person

cannot exercise control over one company

without having made offers to the public

shareholders of both companies.

This guarantees the equal treatment of both

sets of shareholders, and that the two

companies are considered as a single

economic entity. The Articles of Association of

Rio Tinto plc and the Constitution of Rio Tinto

Limited impose restrictions on any person who

controls, directly or indirectly, 20% or more of

the votes on a Joint Decision. If, however,

such a person has an interest in either

Rio Tinto Limited or Rio Tinto plc only, then the

restrictions only apply if they control, directly

or indirectly, 30% or more of the votes at that

company’s general meetings.

If one of these thresholds is exceeded,

the person cannot attend or vote at general

meetings of the relevant company, cannot

receive dividends or other distributions from

the relevant company, and may be divested of

their interest by the Directors of the relevant

company (subject to certain limited exceptions

and notification by the relevant company).

These restrictions continue to apply until that

person has either made a public offer for all

the publicly held shares of the other company,

has reduced their controlling interest below the

thresholds specified, or has acquired through

a permitted means at least 50% of the publicly

held shares of each company.

This arrangement ensures that offers for the

publicly held shares of both companies would

be required to avoid the restrictions set out

above, even if the interests which breach the

thresholds are held in just one of the

companies. The Directors do not have the

discretion to exempt a person from the

operation of these rules.

Under the Sharing Agreement, the companies

agree to cooperate to enforce the above

restrictions contained in their Articles of

Association and Constitution.

Guarantees

In 1995, each company entered into a deed

poll guarantee in favour of creditors of the

other company. In addition, each company

guaranteed the contractual obligations of the

other and the obligations of other persons

guaranteed by the other company, subject to

certain limited exceptions.

Beneficiaries under deed poll guarantees can

make demands on the relevant guarantor

without first having recourse to the company

or persons whose obligations are being

guaranteed. The obligations of the guarantor

under each deed poll guarantee expire upon

termination of the Sharing Agreement and

under other limited circumstances, but only in

respect of obligations arising after such

termination and, in the case of other limited

circumstances, the publication and expiry of

due notice.

Markets

Rio Tinto plc

The principal market for Rio Tinto plc shares is

the London Stock Exchange, with shares

trading through the Stock Exchange Electronic

Trading Service (SETS) system.

Rio Tinto plc American Depositary

Receipts (ADRs) are listed on the

New York Stock Exchange.

Rio Tinto Limited

Rio Tinto Limited shares are listed on the

Australian Securities Exchange (ASX).

The ASX is the principal trading market for

Rio Tinto Limited shares. The ASX is a

national stock exchange with an automated

trading system.

Shareholder information continued

348 Annual Report on Form 20-F 2023 | riotinto.com

Share ownership

Substantial shareholders in Rio Tinto plc

The following table shows holdings of 3% or more of voting rights in Rio Tinto plc’s ordinary shares as per the most recent notification of each

respective holder to Rio Tinto plc under the UK Disclosure and Transparency Rule 5. The percentage of voting rights detailed below was calculated

as at the date of the relevant disclosures. The following table shows shareholders who have provided this notice or an equivalent as of 7 February

2024.

Rio Tinto plc	Date of notice	Number of shares	Percentage of capital
BlackRock, Inc.1	4 Dec 2009	127,744,871	8.38
Shining Prospect Pte. Ltd	7 Dec 2018	182,550,329	14.02
The Capital Group Companies, Inc.	6 Jul 2022	51,648,733	4.13

1.On 25 January 2024, BlackRock, Inc. filed an Amendment to Schedule 13G with the SEC and disclosed beneficial ownership of 112,980,265 ordinary shares in Rio Tinto plc as of 31 December

2023, representing 9.0% of that class of shares.

Substantial shareholders in Rio Tinto Limited

Under the Australian Corporations Act 2001, any person with 5% or more voting power in Rio Tinto Limited is required to provide the company with

notice. The following table shows shareholders who have provided this notice or an equivalent as of 7 February 2024:

Rio Tinto Limited	Date of notice	Number of shares	Percentage of capital2
State Street Corporation	30 May 2023	23,628,115	6.37
BlackRock, Inc.3, 4	5 Dec 2022	26,031,175	7.01
The Vanguard Group, Inc.	11 Apr 2022	18,564,679	5.00
Shining Prospect Pte. Ltd	9 Feb 2018	see footnote5	see footnote5

2.The percentage of voting rights detailed was as disclosed in the notice received by the company, calculated at the time of the relevant disclosure.

3.In its substantial holding notice filed on 5 December 2022, BlackRock, Inc. and its associates disclosed a holding of 115,764,125 shares in Rio Tinto plc and 26,031,175 shares in Rio Tinto

Limited, which gave BlackRock, Inc. and its associates voting power of 8.74% in the Rio Tinto Group on a Joint Decision matter. Accordingly, in addition to being substantial shareholders of

Rio Tinto Limited by virtue of interests held in Rio Tinto Limited’s shares, through the operation of the Australian Corporations Act 2001 as modified to apply to the DLC structure, these entities

disclosed voting power of 8.74% in Rio Tinto Limited. Based on this notification, as at 5 December 2022, BlackRock, Inc. directly held a 7.01% interest in Rio Tinto Limited. 

4.On 2 February 2024, BlackRock, Inc. filed an Amendment to Schedule 13G with the SEC and disclosed beneficial ownership of 24,991,523 ordinary shares in Rio Tinto Limited as of 31

December 2023, representing 6.7% of that class of shares.

5.In its substantial holding notice filed on 9 February 2018, Shining Prospect Pte. Ltd disclosed that its holding of 182,550,329 Rio Tinto plc shares gave Shining Prospect Pte. Ltd and its associates

voting power of 10.32% in the Rio Tinto Group on a Joint Decision matter. Accordingly, through the operation of the Australian Corporations Act 2001 as modified to apply to the DLC structure,

these disclosed voting power of 10.32% in Rio Tinto Limited.

As far as is known, Rio Tinto plc and Rio Tinto

Limited are not directly or indirectly owned or

controlled by another corporation or by any

government or natural person. Rio Tinto is not

aware of any arrangement that may result in a

change in control of Rio Tinto plc or Rio Tinto

Limited. No shareholder possesses voting

rights that differ from those attaching to

Rio Tinto plc’s and Rio Tinto Limited’s

securities.

As of 7 February 2024, the total amount of the

Group’s voting securities owned by the

Directors and Executives in Rio Tinto plc was

305,203 ordinary shares of 10p each or ADRs.

There were 24,351 holders of record of

Rio Tinto plc’s shares. Of these holders, 394

had registered addresses in the US and held a

total of 113,706 Rio Tinto plc shares,

representing 0.02% of the total number of

Rio Tinto plc shares issued and outstanding as

at such date. In addition, 190,636,973

Rio Tinto plc shares were registered in the

name of a custodian account in London which

represented 15.2% of Rio Tinto plc shares

issued and outstanding. These shares were

represented by 190,636,973 Rio Tinto plc

ADRs held of record by 417 ADR holders. In

addition, certain accounts of record with

registered addresses other than in the US hold

shares, in whole or in part, beneficially for US

persons.

As of 7 February 2024, the total amount of the

Group’s voting securities owned by Directors

and Executives in Rio Tinto Limited was

93,403 shares, in aggregate representing less

than 1% of the Group’s total number of

ordinary shares in issue. There were 175,879

holders of record of Rio Tinto Limited shares.

Of these holders, 245 had registered

addresses in the US, representing

approximately 0.04% of the total number of

Rio Tinto Limited shares issued and

outstanding as of such date. In addition,

nominee accounts of record with registered

addresses other than in the US may hold

Rio Tinto Limited shares, in whole or in part,

beneficially for US persons.

Unquoted equity securities in

Rio Tinto Limited

As at 7 February 2024, there were Rio Tinto

Limited unquoted equity securities on issue,

comprising 55,628 unvested Bonus Deferral

Awards held by 32 holders; 1,176,563

unvested Management Share Awards

held by 1,095 holders; and 1,000,810

unvested Performance Share Awards held by

99 holders, all of which were granted under

the Rio Tinto Limited Equity Incentive Plan,

and 1,386,501 unvested matching share rights

were granted under the Rio Tinto Limited

Global Employee Share Plan held by 16,626

holders. This information is provided in

compliance with ASX Listing Rule 4.10.16.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 349

Analysis of ordinary shareholders

	Rio Tinto plc				Rio Tinto Limited
As at 7 February 2024	No. of accounts	%	Shares	%	No. of accounts	%	Shares	%
1 to 1,000 shares	18,075	74.48	5,689,892	0.48	151,767	86.29	38,369,451	10.34
1,001 to 5,000 shares	4,459	18.10	9,060,384	0.76	21,644	12.31	42,936,178	11.57
5,001 to 10,000 shares	512	2.10	3,613,306	0.30	1,723	0.98	11,854,363	3.19
10,001 to 25,000 shares	368	1.43	5,973,286	0.48	587	0.33	8,626,863	2.32
25,001 to 125,000 shares	442	1.98	26,567,395	2.48	118	0.07	5,419,916	1.46
125,001 to 250,000 shares	149	0.56	26,501,660	2.06	7	0.00	1,353,164	0.36
250,001 to 1,250,000 shares	231	0.90	125,718749	10.22	20	0.01	8,455,431	2.28
1,250,001 to 2,500,000 shares	50	0.19	87,970,403	6.87	5	0.00	8,524,474	2.30
2,500,001 shares and over	65	0.26	964,808,5121	76.35	8	0.00	245,666,374	66.18
			1,255,903,5872	100.00			371,216,2143	100.00
Number of holdings less than marketable parcel of A$500					2,064

1.This includes 190,636,973 shares held in the name of a nominee on the share register. The shares are listed on the New York Stock Exchange (NYSE) in the form of American Depositary

Receipts (ADRs).

2.The total issued share capital is made up of 1,255,930,587 publicly held shares and 4,485,902 shares held in Treasury.

3.Publicly held shares in Rio Tinto Limited.

Twenty largest registered shareholders

The following table lists the 20 largest registered holders of Rio Tinto Limited shares in accordance with the ASX listing rules, together with the

number of shares and the percentage of issued capital each holds, as of 7 February 2024.

Rio Tinto Limited	Number of shares	Percentage of issued share capital
HSBC Custody Nominees (Australia) Limited	118,071,649	31.81
J. P. Morgan Nominees Australia Pty Limited	53,752,889	14.48
Citicorp Nominees Pty Ltd	38,696,031	10.42
BNP Paribas Nominees Pty Ltd (Agency Lending A/C)	11,526,786	3.11
National Nominees Limited	9,266,881	2.50
BNP Paribas Noms Pty Ltd	8,814,302	2.37
Citicorp Nominees Pty Limited (Colonial First State Inv A/C)	3,507,755	0.94
HSBC Custody Nominees (Australia) Limited (NT-Comnwlth Super Corp A/C)	2,607,208	0.70
Argo Investments Limited	2,197,139	0.59
Australian Foundation Investment Company Limited	1,928,853	0.52
BNP Paribas Nominees Pty Ltd (ACF Clearstream)	1,772,094	0.48
Netwealth Investments Limited (WRAP Services A/C)	1,357,603	0.37
BNP Paribas Nominees Pty Ltd Hub24 Custodial Serv Ltd	1,335,622	0.36
Custodial Services Limited	1,202,875	0.32
BNP Paribas  Nominees Pty Ltd Barclays	664,305	0.18
Mutual Trust Pty Ltd	590,089	0.16
BNP Paribas Noms (NZ) Ltd	557,963	0.15
CGU Insurance	539,674	0.15
Washington H Soul Pattinson and Company Limited	431,120	0.12
Australian United Investment Co Ltd	400,000	0.11
Diversified United Investment Ltd	400,000	0.11

Shareholder information continued

350 Annual Report on Form 20-F 2023 | riotinto.com

Material contracts

Articles of Association, Constitution, and DLC

Sharing Agreement

As explained on page 347, under the terms of

the DLC structure, shareholders of Rio Tinto

plc and of Rio Tinto Limited entered into

certain contractual arrangements designed to

place the shareholders of both companies in

substantially the same position as if they held

shares in a single entity that owned all the

assets of both companies. As far as is

permitted by the UK Companies Act 2006,

the Australian Corporations Act 2001 and ASX

Listing Rules, this principle is reflected in the

Articles of Association of Rio Tinto plc and in

the Constitution of Rio Tinto Limited.

The following summaries describe the material

rights of shareholders of both Rio Tinto plc and

Rio Tinto Limited.

Objects

At the 2009 AGMs, shareholders of Rio Tinto

plc and Rio Tinto Limited approved

amendments to their Articles of Association

and Constitution whereby the object clauses

were removed to allow the companies to have

the widest possible scope of activities.

Directors’ interests

Under Rio Tinto plc’s Articles of Association,

a Director may not vote in respect of any

proposal in which he or she, or any other

person connected with him or her, has any

interest, other than by virtue of his or her

interests in shares or debentures or other

securities of, in or through the company,

except in certain circumstances, including in

respect of resolutions:

–Indemnifying him or her or a third party in

respect of obligations incurred by the

Director on behalf of, or for the benefit of,

the company, or in respect of obligations of

the company, for which the Director has

assumed responsibility under an indemnity,

security or guarantee.

–Relating to an offer of securities in which he

or she may be interested as a holder of

securities or as an underwriter.

–Concerning another body corporate in

which the Director is beneficially interested

in less than 1% of the issued shares of any

class of shares of such a body corporate.

–Relating to an employee benefit in which

the Director will share equally with

other employees.

–Relating to liability insurance that the

company is empowered to purchase for the

benefit of Directors of the company in

respect of actions undertaken as Directors

(or officers) of the company.

–Concerning the giving of indemnities in

favour of Directors or the funding of

expenditure by Directors to defend criminal,

civil or regulatory proceedings or actions

against a Director.

Under Rio Tinto Limited’s Constitution,

a Director may be present at a meeting of the

Board while a matter in which the Director has

a material personal interest is being

considered and may vote in respect of that

matter, except where a Director is constrained

by Australian law.

The Directors are empowered to exercise all

the powers of the companies to borrow

money; to charge any property or business of

the companies or all, or any, of their uncalled

capital; and to issue debentures or give any

other security for a debt, liability or obligation

of the companies or of any other person. The

Directors shall restrict the borrowings of

Rio Tinto plc to the limitation that the

aggregate amount of all monies borrowed by

the company and its subsidiaries shall not

exceed an amount equal to 1.5 times the

companies’ share capital plus aggregate

reserves unless sanctioned by an ordinary

resolution of the company.

Directors are not required to hold any shares

of either company by way of qualification. The

Remuneration Report on pages 113-145

provides information on shareholding policies

relating to Executive and Non-Executive

Directors. Please refer to the Directors’ Report

for information on the appointment of

Directors.

Rights attaching to shares

Under UK law, dividends on shares may only

be paid out of profits available for distribution,

as determined in accordance with generally

accepted accounting principles and by the

relevant law. Shareholders are entitled to

receive such dividends as may be declared by

the Directors. Directors may also pay interim

dividends to shareholders as justified by the

financial position of the Group.

Under the Australian Corporations Act 2001,

dividends on shares may only be paid if the

company’s assets exceed its liabilities

immediately before the dividend is declared,

the excess is sufficient for the payment of the

dividend, the payment is fair and reasonable

to the company’s shareholders as a whole,

and the payment does not materially prejudice

the company’s ability to pay its creditors. Any

Rio Tinto plc dividend unclaimed after 12

years from the date the dividend was

declared, or became due for payment, will be

forfeited and returned to the company. Any

Rio Tinto Limited dividend unclaimed may be

invested or otherwise used by the Board for

the benefit of the company until claimed or

otherwise disposed of according to Australian

law. Rio Tinto Limited is governed by the State

of Victoria’s unclaimed monies legislation,

which requires the company to pay to the state

revenue office any unclaimed dividend

payments of A$20 or more that on 1 March

each year have remained unclaimed for over

12 months.

Voting

Voting at any general meeting of shareholders

on a resolution on which the holder of the

Special Voting Share is entitled to vote shall

be decided by a poll, and any other resolution

shall be decided by a show of hands unless a

poll has been duly demanded. On a show of

hands, every shareholder who is present in

person or by proxy (or other duly authorised

representative) and is entitled to vote, has one

vote regardless of the number of shares held.

The holder of the Special Voting Share is not

entitled to vote in a show of hands. On a poll,

every shareholder who is present in person or

by proxy (or other duly authorised

representative) and is entitled to vote, has one

vote for every ordinary share for which he or

she is the holder. In the case of Joint

Decisions, the holder of the Special Voting

Share has one vote for each vote cast in

respect of the publicly held shares of the other

company.

A poll may be demanded by any of

the following:

–The Chair of the meeting.

–At least five shareholders entitled to vote on

the resolution.

–Any shareholder(s) representing in the

aggregate not less than one tenth (Rio Tinto

plc) or one 20th (Rio Tinto Limited) of the

total voting rights of all shareholders entitled

to vote on the resolution.

–Any shareholder(s) holding Rio Tinto plc

shares conferring a right to vote at the

meeting on which there have been paid-up

sums in the aggregate equal to not less

than one tenth of the total sum paid up on

all the shares conferring that right.

–The holder of the Special Voting Share of

either company.

A proxy form gives the proxy the authority to

demand a poll, or to join others in

demanding one.

The necessary quorum for a Rio Tinto plc

general meeting is three members present

(in person or by proxy or other duly authorised

representative) and entitled to vote. For a

Rio Tinto Limited general meeting it is two

members present (in person or by proxy or

other duly authorised representative).

Matters are transacted at general

meetings by the proposing and passing of

resolutions as:

–Ordinary resolutions (for example the

election of Directors), which require the

affirmative vote of a majority of persons

voting at a meeting for which there is

a quorum.

–Special resolutions (for example amending

the Articles of Association of Rio Tinto plc or

the Constitution of Rio Tinto Limited), which

require the affirmative vote of not less than

three-quarters of the persons voting at a

meeting at which there is a quorum.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 351

The Sharing Agreement further classifies

resolutions as Joint Decisions and class rights

actions as explained on page 347.

AGMs must be convened with 21 days’ written

notice for Rio Tinto plc and with 28 days’

notice for Rio Tinto Limited. In accordance

with the authority granted by shareholders at

the Rio Tinto plc AGM in 2023, other meetings

of Rio Tinto plc may be convened with 14

days’ written notice for the passing of a special

resolution, and with 14 days’ notice for any

other resolution, depending on the nature of

the business to be transacted. All meetings of

Rio Tinto Limited require 28 days’ notice. In

calculating the period of notice, any time taken

to deliver the notice and the day of the

meeting itself are not included. The notice

must specify the nature of the business to be

transacted.

Variation of rights

If, at any time, the share capital is divided into

different classes of shares, the rights attached

to each class may be varied, subject to the

provisions of the relevant legislation, the

written consent of holders of three-quarters in

value of the shares of that class, or upon the

adoption of a special resolution passed at a

separate meeting of the holders of the shares

of that class. At every such meeting, all of the

provisions of the Articles of Association and

Constitution relating to proceedings at a

general meeting apply, except that the quorum

for Rio Tinto plc should be two or more

persons who hold or represent by proxy not

less than one-third in nominal value of the

issued shares of the class.

Rights upon a winding-up

Except as the shareholders have agreed or

may otherwise agree, upon a winding-up, the

balance of assets available for distribution

after the payment of all creditors (including

certain preferential creditors, whether

statutorily preferred creditors or normal

creditors), and subject to any special rights

attaching to any class of shares, is to be

distributed among the holders of ordinary

shares according to the amounts paid-up on

the shares held by them. This distribution

should generally be made in cash.

A liquidator may, however, upon the adoption

of a special resolution of the shareholders,

divide among the shareholders the whole or

any part of the assets in specie or kind.

The Sharing Agreement describes the

distribution of assets of each of the companies

in the event of a liquidation, as explained on

page 348.

Facility agreement

Details of the Group’s $7.5 billion multi-

currency committed revolving credit facilities

are set out in the Our capital and liquidity

section to the financial statements on

page 204.

Exchange controls and foreign

investment

Rio Tinto plc

There are no UK foreign exchange controls or

other restrictions on the import or export of

capital by, or on the payment of dividends to,

non-resident holders of Rio Tinto plc shares,

or that materially affect the conduct of

Rio Tinto plc’s operations. It should be noted,

however, that various sanctions, laws,

regulations or conventions may restrict the

import or export of capital by, or the payment

of dividends to, non-resident holders of

Rio Tinto plc shares. There are no restrictions

under Rio Tinto plc’s Articles of Association or

under UK law that specifically limit the right of

non-resident owners to hold or vote Rio Tinto

plc shares. However, certain of the provisions

of the Australian Foreign Acquisitions and

Takeovers Act 1975 (the Takeovers Act)

described below also apply to the acquisition

by non-Australian persons of interests in

securities of Rio Tinto plc.

Rio Tinto Limited

Under current Australian legislation, Australia

does not impose general exchange or foreign

currency controls. Subject to some specific

requirements and restrictions, Australian and

foreign currency may be freely brought into

and sent out of Australia. There are

requirements to report cash transfers in or out

of Australia of A$10,000 or more. There is a

prohibition on (or in some cases the specific

prior approval of the Department of Foreign

Affairs and Trade or Minister for Foreign

Affairs must be obtained for) certain payments

or other dealings connected with countries or

parties identified with terrorism, or to whom

United Nations or autonomous Australian

sanctions apply. Sanction, anti-money

laundering and counterterrorism laws may

restrict or prohibit payments, transactions and

dealings or require reporting of

certain transactions.

Rio Tinto Limited may be required to deduct

withholding tax from foreign remittances of

dividends, to the extent that they are

unfranked, and from payments of interest.

Acquisitions of interests in shares, and certain

other equity instruments in Australian

companies by non-Australian (“foreign”)

persons are subject to review and approval by

the Treasurer of the Commonwealth of

Australia under the Takeovers Act.

In broad terms, the Takeovers Act applies to

acquisitions of interests in securities in an

Australian entity by a foreign person where, as

a result, a single foreign person (and any

associate) would control 20% or more of the

voting power or potential voting power in the

entity. The potential voting power in an entity

is determined having regard to the voting

shares in the entity that would be issued if all

rights (whether or not presently exercisable) in

the entity were exercised.

The Takeovers Act also applies to direct

investments by foreign government investors,

in certain circumstances regardless of the size

of the investment. Persons who are proposing

relevant acquisitions or transactions may be

required to provide notice to the Treasurer

before proceeding with the acquisition or

transaction.

The Treasurer has the power to order

divestment in cases where relevant

acquisitions or transactions have already

occurred, including where prior notice to the

Treasurer was not required. The Takeovers

Act does not affect the rights of owners whose

interests are held in compliance with

the legislation.

Limitations on voting and shareholding

Except for the provisions of the Takeovers Act,

there are no limitations imposed by law,

Rio Tinto plc’s Articles of Association or

Rio Tinto Limited’s Constitution, on the

rights of non-residents or foreigners to hold

the Group’s ordinary shares or ADRs, or to

vote that would not apply generally to

all shareholders.

Directors

Appointment and removal of Directors

The appointment and replacement of Directors

is governed by Rio Tinto plc’s Articles of

Association and Rio Tinto Limited’s

Constitution, relevant UK and Australian

legislation, and the UK Corporate Governance

Code. The Board may appoint a Director

either to fill a casual vacancy or as an addition

to the Board, so long as the total number of

Directors does not exceed the limit prescribed

in these constitutional documents.

An appointed Director must retire and seek

election to office at the next AGM of each

company. In addition to any powers of removal

conferred by the UK Companies Act 2006 and

the Australian Corporations Act 2001, the

company may by ordinary resolution remove

any Director before the expiry of his or her

period of office and may, subject to these

constitutional documents, by ordinary

resolution appoint another person who is

willing to act as a Director in their place. In line

with the UK Corporate Governance Code, all

directors are required to stand for re-election

at each AGM.

Shareholder information continued

352 Annual Report on Form 20-F 2023 | riotinto.com

Directors’ powers

The Board manages the business of Rio Tinto under the powers set out in these constitutional documents. These powers include the Directors’

ability to issue or buy back shares. Shareholders’ authority to empower the Directors to purchase its own ordinary shares is sought at the AGM each

year. The constitutional documents can only be amended, or replaced, by a special resolution passed in general meeting by at least 75% of the

votes cast.

UK listing rules cross-reference table

The following table contains only those sections of UK listing rule 9.8.4 C which are relevant. The remaining sections of listing rule 9.8.4 C are

not applicable.

Listing rule	Description of listing rule	Reference in report
9.8.4 (1)	A statement of any interest capitalised by the Group during the year	Note 9 Finance income and finance costs and note 15 Deferred taxation
9.8.4 (12)	Details of any arrangement under which a shareholder has waived or agreed to waive any dividends	See page 148.

Shareholder security

Shareholders tell us that they sometimes receive unsolicited approaches, usually by telephone, inviting them to undertake a transaction in shares

they own.

If a shareholder does not know the source of the call, they should check the details against the Financial Conduct Authority (FCA) website below

and, if they have specific information, report it to the FCA using the consumer helpline or the online reporting form.

If a shareholder is worried that they are a victim of fraud and is resident in the UK, they should report the facts immediately using the Action Fraud

helpline on 0300 123 2040. More information about potential scams and other investment-based fraud can be found at actionfraud.police.uk or

fca.org.uk/scamsmart.

Metal prices and exchange rates

Metal prices – average for the year		2023	2022	Increase/ (Decrease)
Copper	– US cents/lb	386	398	(3)%
Aluminium	– $/tonne	2,250	2,703	(17)%
Gold	– $/troy oz	1,941	1,800	8%
Average exchange rates against the US dollar
Sterling		1.24	1.24	—%
Australian dollar		0.66	0.69	(4)%
Canadian dollar		0.74	0.77	(4)%
Euro		1.08	1.05	3%
South African rand		0.054	0.061	(12)%
Year-end exchange rates against the US dollar
Sterling		1.28	1.21	6%
Australian dollar		0.69	0.68	1%
Canadian dollar		0.76	0.74	3%
Euro		1.11	1.07	4%
South African rand		0.054	0.059	(9)%

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 353

Disclosure pursuant to

Section 13(r) of the U.S.

Securities Exchange Act of

1934

Section 219 of the Iran Threat Reduction and

Syria Human Rights Act of 2012 added Section

13(r) to the Securities Exchange Act of 1934

(the “Exchange Act”). Section 13(r) to the

Exchange Act requires an issuer to disclose in

its annual reports whether it or any of its

affiliates knowingly engaged in certain

activities, transactions or dealings relating to

Iran or with the Government of Iran during the

period covered by the report. The Company

notes the following in relation to activities that

took place in 2023, or in relation to activities

the Company became aware of in 2023

relating to disclosable activities prior to the

reporting period.

The Company routinely takes action to protect

its intellectual property rights in many countries

throughout the world, including Iran. As of

2023, the Company removed Iran from its

intellectual property rights filing strategy.

Rio Tinto acquired its interest in Namibia-

based Rössing Uranium Limited (“Rössing”) in

1970. The Iran Foreign Investments Company

(“IFIC”) acquired its original minority

shareholding in Rössing in 1975. IFIC’s

interest predates the establishment of the

Islamic Republic of Iran and the U.S. economic

sanctions targeting Iran’s nuclear, energy and

ballistic missile programs. IFIC acquired a

minority shareholding in Rössing in

accordance with Namibian law. The Treasury

Department’s Office of Foreign Assets Control

designated IFIC as a Specially Designated

National on 5 November 2018.

On 16 July 2019, the Company completed the

sale of its entire interest 68.62 per cent stake

in Rössing to China National Uranium

Corporation Limited (“CNUC”) for an initial

cash payment of $6.5 million and a contingent

payment of up to $100 million. The contingent

payment is linked to uranium spot prices

reaching a certain level and Rössing's net

income until calendar year 2026. As a result of

the evolution of uranium prices, the contingent

payment had not been triggered as of 31

December 2023. In addition, the Company will

receive a cash payment if, subject to certain

conditions, CNUC sell the Zelda 20 Mineral

Deposit during a restricted period.

As of 31 December 2023, to the best of Rio

Tinto’s knowledge, CNUC had not sold the

Zelda Mineral Deposit. Rio Tinto Marketing Pte

Ltd has continued to purchase a quantity of

uranium produced by Rössing, in order to

satisfy existing contractual commitments with

customers, pursuant to an ongoing marketing

arrangement which will cease on 26 December

2026.

Rössing was neither a business partnership

nor joint venture between the Company and

IFIC. Rössing is a Namibian limited liability

company with a number of shareholders which

included Rio Tinto.

When the Company was a shareholder, IFIC

had no uranium product off-take rights. Neither

IFIC nor other Government of Iran entities had

any supply contracts in place with Rössing and

none received any uranium from Rössing. IFIC

also did not have access to any technology

through its investment in Rössing or rights to

such technology.

Rio Tinto had no power or authority to divest

IFIC’s holding in Rössing. The Rössing board

took steps in 2012 to terminate IFIC’s

involvement in the governance of Rössing.

When Rio Tinto was a shareholder in Rössing,

IFIC was entitled under Namibian law to attend

annual general meetings of Rössing, which

they did attend. IFIC was represented on the

board of Rössing by two directors. While this

level of board representation did not provide

IFIC with the ability to influence the conduct of

Rössing’s business on its own, the Rössing

board nonetheless determined that, in light of

international economic sanctions, it would be in

the best interest of Rössing to terminate IFIC’s

involvement in board activity. Therefore, on 4

June 2012, at the annual general meeting of

Rössing, the shareholders, including the

Company, voted not to re-elect the two IFIC

board members. This ended IFIC’s

participation in Rössing board activities.

While IFIC has a notional entitlement to its pro

rata share of any dividend that the majority of

the board declared for all shareholders in

Rössing,such dividend payments have been

held in a blocked account in Namibia to ensure

compliance with US sanctions legislation.

Accordingly, IFIC has not received such

monies since early 2008. Simply by

maintaining its own shareholding in Rössing,

the Company was not engaging in any activity

intended or designed to confer any direct or

indirect financial support for IFIC.

While the Company does not view itself as

actively transacting or entering into business

dealings with an instrumentality of the

Government of Iran or a Specially Designated

National, this information has been provided to

ensure transparency regarding the passive,

minority shareholding in Rössing held by IFIC

while the Company was a shareholder.

Taxation

US residents

The following is a summary of the principal UK

tax, Australian tax and US federal income tax

consequences of the ownership of Rio Tinto

plc ADSs, Rio Tinto plc shares and Rio Tinto

Limited shares, “the Group’s ADSs and

shares”, by a US holder (as defined below). It

is not intended to be a comprehensive

description of all the tax considerations that are

relevant to all classes of taxpayer. This

summary does not cover all aspects of US

federal income taxation (including the

alternative minimum tax or net investment

income tax) that may be relevant to, or the

actual tax effect that any of the matters

described herein will have on, the acquisition,

ownership, or disposal of the Group’s ADSs

and shares by particular investors. Future

changes in legislation may affect the tax

consequences of the acquisition, ownership or

disposal of the Group’s ADSs and shares.

This summary is based in part on

representations by the Group’s depositary

bank as depositary for the ADRs evidencing

the ADSs and assumes that each obligation in

the deposit agreements will be performed in

accordance with its terms.

You are a US holder if you are a beneficial

owner of the Group’s ADSs and shares and

you are for US federal income tax purposes: a

citizen or resident of the United States; a

corporation created or organised under the

laws of the United States, any state thereof or

the District of Columbia; an estate whose

income is subject to US federal income tax

regardless of its source; or a trust if a US court

can exercise primary supervision over the

trust’s administration and one or more US

persons are authorised to control all

substantial decisions of the trust.

This section applies to US holders only if the

Group’s ADSs or shares are held as capital

assets for US federal income tax purposes.

This section does not address tax

considerations applicable to investors that own

(directly, indirectly, or by attribution) 5% or

more of the stock of the company (by vote or

value) and does not apply to shareholders who

are members of a special class of holders

subject to special rules, including a dealer in

securities, a trader in securities who elects to

use a mark-to-market method of accounting for

securities holdings, a tax exempt organisation,

a life insurance company, a person that holds

the Group’s ADSs or shares as part of a

straddle or a hedging or conversion

transaction, persons that have ceased to be

US citizens or lawful permanent residents of

the United States, investors holding the

Group’s ADSs or shares in connection with a

trade or business conducted outside of the

United States, US expatriates or a person

whose functional currency is not the US dollar.

US Disclosure

354 Annual Report on Form 20-F 2023 | riotinto.com

This section is based on the US Internal

Revenue Code of 1986, as amended (the

Code), its legislative history, existing and

proposed regulations, published rulings and

court decisions, Australian tax law and

practice, UK tax law as applied in England and

Wales and HM Revenue & Customs published

practice (which may not be binding on HM

Revenue & Customs) and on the convention

between the United States and the UK, and the

convention between the United States and

Australia (together, the Conventions) which

may affect the tax consequences of the

ownership of the Group’s ADSs and shares,

all as of the date hereof. These laws and

Conventions are subject to change, possibly

on a retroactive basis.

The summary describes the treatment

applicable under the laws and Conventions in

force at the date of this report.

UK taxation of shareholdings in

Rio Tinto plc

The comments below are based on current

United Kingdom tax law as applied in England

and Wales and HM Revenue & Customs

(“HMRC”) practice (which may not be binding

on HMRC) as at the latest practicable date

before the date of this document. This section

is based on the assumption that for UK tax

purposes a US holder who holds ADRs

evidencing ADSs will be treated as the

beneficial owner of the underlying shares

represented by the ADSs. Case law in the UK

has cast doubt on this view; however, HM

Revenue & Customs have stated that, except

in so far as the relevant US laws (being the

laws applicable to the territory in which the

ADRs are issued) conclusively dictate that the

holder of an ADR will not have beneficial

ownership in the underlying shares, they will

continue to apply their practice of regarding the

holder of an ADR as having a beneficial

interest in the underlying shares.

Taxation of dividends

Under current UK tax legislation, no income tax

is required to be withheld from dividends paid

by Rio Tinto plc. Where dividends are paid by

Rio Tinto plc to a US holder who is not resident

in the UK and who does not hold the Group’s

ADSs and shares in connection with any trade,

profession or vocation carried on through a

branch, agency or permanent establishment in

the UK, no liability to UK tax will generally arise

to the US holder in respect of such dividends.

Capital gains

A US holder, who (if an individual) is not

resident in the UK for the tax year in question

or (if a company) is not resident in the UK

when the gain accrues, will not normally be

liable to UK tax on capital gains realised on the

sale of a Group ADS or share unless (i) the

holder carries on a trade, profession or

vocation in the UK through a branch, agency or

permanent establishment in the UK and the

ADS or share has been used for the purposes

of the trade, profession or vocation or is

acquired, held or used for the purposes of such

a branch, agency or permanent establishment

or (ii) the Group's ADSs or shares are held by

an individual who becomes resident in the UK

having left the UK for a period of non-

residence of five years or less and who was

resident for at least four of the seven tax years

prior to leaving the UK.

Inheritance tax

Under the UK/US Inheritance and Gift Tax Treaty

(1978) (UK/US Estate Tax Treaty), a US holder,

who is an individual shareholder and is domiciled

for the purpose of UK/US Estate Tax Treaty in the

United States and is not for the purposes of the

UK/US Estate Tax Treaty a national of the UK, will

not be subject to UK inheritance tax upon the

holder’s death or on a gift of a Group ADS or

share during the holder’s lifetime, unless that ADS

or share (i) forms part of the business property of

a permanent establishment of the shareholder in

the UK, (ii) pertains to a fixed base situated in the

UK used in the performance of independent

personal services, or (iii) where the ADS or share

is held on trust, at the time of the settlement, the

settlor was domiciled for the purposes of UK/US

Estate Tax Treaty in the United States and was

not for the purposes of UK/US Estate Tax Treaty

a national of the UK. Where a Group an ADS or

share is subject to both UK inheritance tax and

US Federal gift or estate tax, tax payments are

relieved in accordance with the priority rules set

out in the UK/US Estate Tax Treaty.

Stamp duty and stamp duty reserve tax

UK stamp duty should not be required to be paid

in respect of a transfer of Rio Tinto plc ADSs

provided that the transfer instrument is not

executed in, and at all times remains outside, the

UK and does not relate to any property situated or

to any matter or thing to be done in the UK. An

agreement for the transfer of a Group ADS will

not be subject to stamp duty reserve Tax (SDRT).

Unconditional agreements to transfer Rio Tinto

plc shares are subject to SDRT at a rate of 0.5%

of the amount or value of the consideration

payable for the transfer. Transfers of Rio Tinto plc

shares using a written transfer instrument are

subject to stamp duty at a rate of 0.5% of the

amount or value of the consideration on

transactions over £1,000 (rounded up to the

nearest £5). However, if within six years of the

date of the agreement becoming unconditional,

an instrument of transfer is executed pursuant to

the agreement, and stamp duty is paid on that

instrument of transfer, any SDRT already paid will

be refunded (generally, but not necessarily, with

interest) provided that a claim for repayment is

made, and any outstanding liability to SDRT will

be cancelled. Conversions of Rio Tinto plc shares

into Rio Tinto plc ADSs will be subject to

additional stamp duty or SDRT at a rate of 1.5%

of the amount or value of the consideration given

or, in certain circumstances, the value of the

shares, on all transfers to the depositary or its

nominee, unless such a transfer is an integral part

of the raising of capital by Rio Tinto plc. All

subsequent transfers of depositary receipts within

the depositary receipts system are free from

SDRT and stamp duty.

Australian taxation of

shareholdings in Rio Tinto Limited

Taxation of dividends

US holders are not normally liable to Australian

withholding tax on dividends paid by Rio Tinto

Limited because such dividends are normally

fully franked under the Australian dividend

imputation system, meaning that they are paid

out of income that has borne Australian income

tax. Any unfranked dividends would suffer

Australian withholding tax which under the

Australian income tax convention is limited to

15 per cent of the gross dividend.

Capital gains

US holders are not normally subject to any

Australian tax on the disposal of Rio Tinto

Limited shares unless they have been used in

carrying on a trade or business wholly or partly

through a permanent establishment in

Australia, or the gain is in the nature of income

sourced in Australia.

Gift, estate and inheritance tax

Australia does not impose any gift, estate or

inheritance taxes in relation to gifts of shares

or upon the death of a shareholder.

Stamp duty

An issue or transfer of Rio Tinto Limited shares

does not require the payment of Australian

stamp duty.

US federal income tax

In general, taking into account the earlier

assumptions that each obligation of the

Deposit Agreement and any related agreement

will be performed according to its terms, for US

federal income tax purposes, if you hold ADRs

evidencing ADSs, you will be treated as the

owner of the shares represented by those

ADRs. Exchanges of shares for ADRs, and

ADRs for shares, generally will not be subject

to US federal income tax.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 355

Taxation of dividends

Under the US federal income tax laws, and

subject to the Passive Foreign Investment

Company (PFIC) rules discussed below, if you

are a US holder, the gross amount of any

distribution a company pays out of its current

or accumulated earnings and profits (as

determined for US federal income tax

purposes) is subject to US federal income

taxation as dividend income. The dividend will

not be eligible for the dividends-received

deduction generally allowed to US corporations

in respect of dividends received from certain

other corporations. Distributions in excess of

current and accumulated earnings and profits,

as determined for US federal income tax

purposes, will be treated as a non-taxable

return of capital to the extent of your tax basis

in the Group’s ADSs or shares and thereafter

as capital gain. The Group does not maintain

calculations of its earnings and profits in

accordance with US federal income tax

accounting principles. US holders should

therefore assume that any distributions that a

Group member pays with respect to the

Group’s ADSs or Shares will be reported as

dividend income.

Dividends paid to a non-corporate US holder

generally may be taxable at the reduced rate

normally applicable to long-term capital gains

provided the shares are readily tradable on an

established securities market in the United

States or the company paying the dividend

qualifies for the benefits of an income tax

treaty between the United States and the

relevant jurisdiction and certain other

requirements are met (including certain holding

period requirements). Rio Tinto plc ADSs are

traded on the NYSE. Rio Tinto Limited believes

it qualifies for the benefits of the convention

between the United States and Australia.

The dividend is taxable to you when you, in the

case of shares, or the depositary, in the case

of ADSs, receive the dividend, actually or

constructively. The amount of the dividend

distribution that you must include in your

income as a US holder will be the US dollar

value of the non-US dollar payments made,

determined at the spot UK pound/US dollar

rate (in the case of Rio Tinto plc) or the spot

Australian dollar/US dollar rate (in the case of

Rio Tinto Limited) on the date the dividend

distribution is includible in your income,

regardless of whether the payment is in fact

converted into US dollars.

Generally, any gain or loss resulting from

currency exchange fluctuations during the

period from the date you include the dividend

payment in income to the date you convert the

payment into US dollars will be treated as

ordinary income or loss and will not be eligible

for the reduced tax rate normally applicable to

capital gains. The gain or loss generally will be

income or loss from sources within the US for

foreign tax credit limitation purposes.

You must include any Australian tax withheld

from the dividend payment in this gross

amount even though you do not in fact receive

it. Subject to certain limitations, any Australian

tax withheld (at a rate not exceeding any

applicable rate under the convention between

United States and Australia) may be creditable

against your US federal income tax liability.

For foreign tax credit purposes, dividends will

generally be income from sources outside the

United States and will generally constitute

“passive category income” for purposes of

computing the foreign tax credit allowable to

you. In lieu of claiming a tax credit, a US holder

may be able to take a deduction for any

Australian taxes withheld. An election to deduct

foreign taxes instead of claiming a foreign tax

credit must be applied to all foreign taxes paid

or accrued in the US holder’s taxable year.

The rules regarding foreign tax credits are

complex and US holders should consult their

own tax advisers regarding the application of

the foreign tax credit rules to their

particular situation.

Taxation of capital gains

Except if subject to the PFIC rules discussed

below, if you are a US holder and you sell or

otherwise dispose of the Group’s ADSs or

shares, you will recognise a capital gain or loss

for US federal income tax purposes equal to

the difference between the US dollar value of

the amount that you realise and your tax basis,

determined in US dollars, in your Group’s

ADSs or shares. The capital gain of a non-

corporate US holder is generally taxed at

preferential rates where the holder has a

holding period greater than one year.

The gain or loss will generally be income or

loss from sources within the United States for

foreign tax credit limitation purposes. The rules

governing foreign tax credit are complex and

US holders should consult their own tax

advisers regarding the US federal income tax

consequences in case non-US taxes (if any)

are imposed on disposition gains.

US holders should consult their own tax

advisers about how to account for proceeds

received on the sale or other disposition of the

Group’s ADSs or shares that are not paid in

US dollars.

Passive Foreign Investment

Company Rules

We believe that the Group’s ADSs or shares

should not be treated as stock of a PFIC for

US federal income tax purposes for the most

recent taxable year, and we do not expect the

Group ADSs or shares to be treated as stock

of a PFIC for the current taxable year or the

foreseeable future. However, this conclusion is

a factual determination that is made annually

and thus may be subject to change. If we were

to be treated as a PFIC, US holders generally

would be taxed under one of three recognition

provisions which can be elected by the US

taxpayer that holds a PFIC interest. The

available PFIC recognition regimes include 1)

a mark-to-market regime, 2) an excess

distribution regime, or 3) a qualified electing

fund regime. These alternative regimes can

require the US taxpayer to accelerate the

recognition of income, to pay an interest

charge on certain tax liabilities and to change

the character of the gain recognition from

capital gains to ordinary income. Moreover, if

we were to be treated as a PFIC, dividends

that you receive from us will not be eligible for

the reduced rate of tax described above under

“Taxation of dividends.” US holders should

consult their own tax advisers regarding the

potential application of the PFIC rules.

Backup Withholding and Information

Reporting

The proceeds of a sale or other disposition,

as well as dividends and other proceeds, with

respect to the Group’s ADSs or shares by a US

paying agent or other US intermediary will be

reported to the US Internal Revenue Service

and to the US holder as may be required under

applicable regulations. Backup withholding

may apply to these payments if the US holder

fails to provide an accurate taxpayer

identification number or certification of exempt

status or fails to comply with applicable

certification requirements. Certain US holders

are not subject to backup withholding. US

holders should consult their tax advisers about

these rules and any other reporting obligations

that may apply to the ownership or disposition

of the Group’s ADSs or shares, including

requirements related to the holding of certain

foreign financial assets.

American Depositary Shares

American depositary receipts

(ADRs)

Rio Tinto plc has a sponsored ADR facility with

JPMorgan Chase Bank NA (“JPMorgan”) under

a Deposit Agreement, dated 13 July 1988, as

amended on 11 June 1990, as further

amended and restated on 15 February 1999,

18 February 2005 (when JPMorgan became

Rio Tinto plc’s depositary), 29 April 2010, 19

February 2016 and 17 June 2021. The ADRs

evidence Rio Tinto plc ADSs, each

representing one ordinary share.

The shares are registered with the US

Securities and Exchange Commission (“SEC”),

are listed on the NYSE and are traded under

the symbol RIO.

US Disclosure continued

356 Annual Report on Form 20-F 2023 | riotinto.com

Fees and charges payable by a holder of ADSs

In accordance with the terms of the Deposit Agreement, JPMorgan may charge holders of Rio Tinto ADSs, either directly or indirectly, fees or

charges up to the amounts described in the table below.

Category	Depositary actions	Associated fee
	Issuance of ADSs against the deposit of shares, including deposits and issuance in respect of: –Share distributions, stock split, rights, merger –Exchange of securities or other transactions –Other events or distributions affecting the ADSs or the deposited securities	$5.00 or less per 100 ADSs (or portion thereof) evidenced by the new ADSs delivered
Selling or exercising rights	Distribution or sale of securities, the fee being in an amount equal to the fee for the execution and delivery of ADSs which would have been charged as a result of the deposit of such securities	$5.00 or less for each 100 ADSs
Distributing dividends	Distribution of cash or other dividends	$0.02 or less per ADS
Withdrawing an underlying share	Acceptance of ADSs surrendered for withdrawal of deposited securities	$5.00 or less for each 100 ADSs evidenced by the ADSs surrendered
Transferring, splitting or grouping receipts	Transfers, combining or grouping of depositary receipts	$1.50 per ADS
General depositary services, particularly those charged on an annual basis	Other services performed by the depositary in administering the ADRs Provide information about the depositary’s right, if any, to collect fees and charges by offsetting them against dividends received and deposited securities	$0.02 or less per ADS not more than once each calendar year and payable at the sole discretion of the depositary by billing holders or deducting such charge from one or more cash dividends or other cash distributions
Expenses of the depositary	Expenses incurred on behalf of holders in connection with: –Compliance with foreign exchange control regulations or any law or regulation relating to foreign investment –The depositary’s or its custodian’s compliance with applicable law, rule or regulation –Stock transfer or other taxes and other governmental charges –Cable, telex, facsimile and electronic transmission/delivery –Expenses of the depositary in connection with the conversion of foreign currency into US dollars (which are paid out of such foreign currency) –Any other charge payable by the depositary or its agents	Expenses payable at the sole discretion of the depositary by billing holders or by deducting charges from one or more cash dividends or other cash distributions

Fees and payments made by the

depositary to the issuer

JPMorgan has agreed to reimburse certain

company expenses related to the Rio Tinto plc

ADR programme and incurred by the Group in

connection with the programme. The Group

received US $2,685,345.17 in respect of

expenses incurred by the Group in connection

with the ADR programme for the year ended

31 December 2023. JPMorgan did not pay any

amount on the Group’s behalf to third parties.

JPMorgan also waived certain of its standard

fees and expenses associated with the

administration of the programme relating to

routine programme maintenance, reporting,

distribution of cash dividends, annual meeting

services and report mailing services.

Under certain circumstances, including

removal of JPMorgan as depositary or

termination of the ADR programme by the

Company, the Company is required to repay

JPMorgan any amounts of administrative fees

and expenses waived during the 12-month

period prior to notice of removal or termination.

Document on display

Rio Tinto is subject to the SEC reporting

requirements for foreign companies. This Form

20-F, which corresponds with the Form 10-K

for US public companies, was filed with the

SEC on 23 February 2024. Rio Tinto’s Form

20-F and other filings (including Rio Tinto’s

Annual Report 2023 as filed on Form 6-K) can

be viewed on the Rio Tinto website as well as

the SEC website at www.sec.gov.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 357

Cyber security

Strategy

Our vision is to create an environment where

cyber security is implicit in everything we do, 

enabling the business to operate and grow,

while actively managing cyber risks to our

people, information and assets.

Our Cyber Security Strategy (2023-2025) (Cyber

Security Strategy) builds upon foundations

established by the Cyber Security Strategy and

multi‐phased Cyber Security Remediation

Program implemented between 2020 and 2022.

This program improved segregation of corporate

and process control networks, and allowed us to

strengthen privileged identity management and

close control gaps on the corporate network. 

Our Cyber Security Strategy has four strategic

objectives that guide how, together, we can

build and maintain cybersecurity resilience.

These objectives will enable us to strengthen

and evolve our current cyber security

approach, while keeping pace with an ever-

changing cyber security threat landscape, to

provide a safe, stable and secure technology

platform.

Objective 1: Maintain a ”best-in-class” cyber

security capability

Continue to uplift and align our cyber security

capabilities with industry standards through

ongoing assurance and benchmarking.

Objective 2: Realise and sustain essential control

improvements for our core technology platforms

Embed robust frameworks for continuous

monitoring, assurance and improvement of the

cyber security operational control environment.

Objective 3: Build a culture of cyber security

resilience and consciousness

Increase our visibility, security consciousness and

ensure everyone is aware of and understands their

responsibilities and obligations.

Objective 4: Secure our digital future

Adopt effective cyber control measures in new and

emerging technologies critical to our digital future.

Our Cyber Security Strategy requires ongoing

investment to embed and sustain cyber

security capabilities and controls, to best

support our operations as cyber threats

continue to rapidly evolve. We develop a plan

each year detailing the initiatives, investment

and goals we'll deliver, aligned to each of the

four pillars of the Strategy. At the beginning of

each financial year, the plan is endorsed by

the Cyber Security Steering Committee

(CSSC), a management committee chaired by

the Chief Financial Officer. Detailed quarterly

plans are then prepared to communicate our

goals to the wider Cyber Security team, and

the milestones we will need to meet to

accomplish these goals. This provides the

Cyber Security function with a structured way

to ensure clarity on priorities and

accountabilities, and a way to measure

progress throughout the year.

Major initiatives and improvement objectives

for 2024 relate to improving Operational

Technology (OT) endpoint detection and

response, securing remote access to process

control networks, and extending corporate

privileged identity management controls into

OT networks.

Governance

The Board and Executive Committee have

ultimate oversight of our material risks, and

the Audit & Risk Committee monitors the

overall effectiveness of our risk management

and internal controls framework. Operational

management committees then oversee risk

management at the product group and

function level, supported by assurance and

compliance activities.

Exposures to cyber security risks are

managed consistent with other material group

risks, and are reported to the Board, Audit &

Risk Committee and the Executive Committee.

Our Cyber Security function is overseen by the

CSSC. The remit of the function is defined

within our Group Procedure for Information

and Cyber Security. Specific expectations for

all employees are detailed within our

Acceptable Use of Information

and Electronic Resources Group

Standard, and our employee Code of Conduct,

The Way We Work.

For external assurance, we commission

independent assessment and benchmarking

against the US National Institute of Standards

and Technology Cybersecurity Framework

(NIST CSF) upon which our internal standards

are based. These reviews are conducted by

consultancies specialising in cyber security

and include penetration testing and the

simulation of external attacks on our

information security.

Capabilities of our Cyber Security function:

Threat intelligence	Understanding the latest cyber security threats and assessing our potential exposure.
Vulnerability management	Maintaining awareness of and continuously resolving security vulnerabilities before they can be exploited, including a dedicated internal function to test our defences against the latest vulnerabilities.
Security risk and advisory	Ensuring information technology (IT) projects and changes stay within our risk appetite by assessing and advising on appropriate and effective cybersecurity controls.
Security operations	Keeping core information security platforms and services available, accessible and operating effectively at all times.
Security architecture	Ensuring solution designs and our overall technology architecture are in line with good cyber security practice to be robust, resilient, and sustainable.
Incident response	Persistent monitoring, alerting and triage of cyber security events. As required, initiating appropriate responses to contain threats, resolve vulnerabilities, and recover services.
Cyber governance	Facilitating the definition, dissemination and monitoring of our security policies, standards and control environment.
Education and awareness	Educating employees and third parties we work with about keeping information technology secure and being vigilant against social engineering.

US Disclosure continued

358 Annual Report on Form 20-F 2023 | riotinto.com

Board

The Board, supported by the Audit & Risk

Committee, is responsible for preventing

material business disruption and data

breaches due to cyber events. The Audit &

Risk Committee considers a detailed annual

update about the Group's cyber security

posture, and material incidents are escalated

as they occur through the Group's disclosure

process. This annual update is also reviewed

by the Board.

The Audit & Risk Committee receives periodic

updates on cyber security through the central risk

management information system and supporting

processes. Cyber Security is also subject to a

comprehensive assurance program, the results

of which are reported to the Audit & Risk

Committee in line with standard processes for

reporting assurance findings. Other specific

topics and points of interest are reported to the

Committee as required.

Management

Our Cyber Security function operates

under the direction of our Chief Information

Security Officer (CISO), who executes

strategic direction and leads the function. The

CISO reports directly to the Chief Information

Officer (CIO) who is accountable to the Chief

Financial Officer. Additional oversight is

provided by the CSSC.

Our CISO leads a management team that

oversees delivery of the capabilities listed in

the table on the previous page.

The CSSC is our primary governing body for

operational management, responsible for cyber

security and the oversight of Group-wide cyber

security, reporting regularly to the Executive

Committee. The objective of the CSSC is to

ensure proper steps are taken to proactively

manage cyber security risk and protect our most

valuable information assets, process control

systems and users. The CSSC also helps drive

appropriate behaviours, and ensures high-priority

initiatives receive executive support across the

Group.

In the event of a cyber security incident, our

Cyber Incident Response team takes action to

contain, analyse and remediate the incident.

Impact thresholds trigger disclosures to

governance bodies, including the CSSC and

the Disclosure Committee, who may consult

with external legal counsel. See “Disclosure

Committee” on page 103.

The following table lists the members of the

CSSC as well as their relevant experience.

Name	Title	Relevant experience
Peter Cunningham	Chief Financial Officer	Peter joined Rio Tinto in March 1993 and was appointed Chief Financial Officer and Executive Director in June 2021. As Chair of the Cyber Security Steering Committee, he has presided over regular cyber security threat intelligence briefings, the active monitoring of key cyber risks, and progress of our cyber security improvement and assurance initiatives since assuming the duties of the Chair of the CSSC in 2021. With his leadership of our IT, Group Risk and Group Internal Audit functions, he maintains strong oversight of our broader risk management processes and internal controls.
Daniel Evans	Chief Information Officer	Daniel has 12 years' cyber security leadership experience in senior, cyber intelligence and operational leadership roles.
Scott Brown	Chief Information Security Officer	Scott has more than 14 years' cyber security experience in both senior leadership and operational roles.
Isabelle Deschamps	Chief Legal Officer, Governance and Corporate Affairs	Isabelle, Mark, Belinda and Richard bring operational and business risk expertise that is relevant to cyber security and their respective roles on the CSSC.
Mark Davies	Chief Technical Officer
Belinda Taylor	Head of Group Risk
Richard Cohen	Operational Managing Director from a Product Group (currently Rio Tinto Iron Ore).

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 359

Risk management

Group risk management process

Cyber security risk exposures are managed

consistent with the Group risk management

process, which can be described as a plan-do-

check-act cycle. See “Our approach to risk

management” on pages 79-80. The following

steps of our Group risk management process are

applicable to cyber security:

–Set strategy, objectives and risk appetite

We review our Cyber Security Strategy,

objectives and risk appetite after

improvements in controls and actions.

–Risk analysis

Managers delivering our business

objectives must identify potential risks

against a common risk taxonomy which

includes a category for information and

cyber security. Where exposure is identified,

the accountable manager uses a universal

evaluation scheme to assess the potential

impact of a cyber security event.

–Risk management

Where material consequences are

identified, there is a common set of eight

group controls that the risk owner is

responsible for implementing, with support

from Cyber Security as required. These

governance controls ensure a considered

level of engagement and collaboration with

the cyber security team and the services

they offer, commensurate with the risk.

–Assurance

Cyber Security, as owner of the Group

controls, will oversee and support their

implementation and operation in line with

the Group control framework. Where we

have material exposure, the first line of

assurance and verification of these controls

will be incorporated into first-line assurance

plans. Risk profiles and trends inform

second- and third-line assurance.

–Communication

Cyber security risk exposure is

communicated as part of integrated risk

reporting processes and can be escalated

through standard risk escalation channels.

Beyond this, there is extensive monitoring of

the performance of critical controls which is

communicated to control owners and the

CSSC.

–Improvement

Where exposure to cyber security risk is

outside of tolerance, as highlighted in risk

profiles or through assurance activity, Cyber

Security will support or sponsor

improvement initiatives through the

business planning process.

Cyber security risk management

framework

The management of cybersecurity is a focus

across all IT operations and projects for our

business and the third parties we rely on. Our

cyber security risk management framework is

based on the globally recognised NIST CSF.

In aligning to this framework, we maintain a

control environment supported by dedicated

functions covering identification, protection

and control, detection, response and recovery

from cyber incidents. We also inspect and

assure on an ongoing basis to improve our

internal and external cyber security

environment.

–Identify risk

Our overall risk management process and

evaluation scheme supports the

assessment of cyber security risks. To

ensure awareness and consistency in

understanding cyber risk, IT relationship

managers partner with the leaders of our

businesses to identify critical enterprise

systems and assets, completing business

impact assessments as required. We

assess the consequence should the

confidentiality, integrity or availability of our

information systems be breached.

Our Threat Intelligence function maintains

relationships with government, industry,

professional bodies, and educational

institutions, to ensure we remain aware and

vigilant of the external threat landscape.

Where threats are identified, this function

will investigate our exposure (triggering an

overall risk assessment where required),

drive awareness and education to enhance

vigilance and recommend control

improvements. The Threat Intelligence

function tests our vulnerability to key threats

through penetration testing (ethical hacking)

and simulating incidents such as the receipt

of phishing emails. Finally, the function also

consults with other IT and cyber functions to

ensure we’re designing our controls with

knowledge of the latest threats.

To identify new risks which may arise from

technology changes, and from the evolution

or ageing of technology environments, we

maintain a dedicated capability in cyber risk

analysis. This function conducts security risk

assessments for IT projects and change

requests, including for all third parties which

impact our cyber security posture. They also

deliver a program of risk-based deep-dive

assessments of established technology

environments to identify any emergent

exposures.

–Protect and control

Cyber Security, in collaboration with IT

operations, operate a suite of IT controls

that protect our information systems through

access control, change governance, back-

up, and continuous vulnerability

management. We utilise a variety of tools to

continuously scan for, patch and monitor

security vulnerabilities.

To ensure an appropriate level of protection,

we maintain a directory of control

requirements and facilitate the development

of technical standards. Management

reporting on control performance, along with

targeted compliance assessments, enables

us to monitor our conformance to these

standards. To operationalise the standards

effectively we maintain specialist capability

across many security domains such as

application, networks and secure

operations.

We maintain a persistent focus on

developing the vigilance of employees and

third-party users which is essential for

protection of information systems.

Mandatory training is assigned to all

relevant employees and contractors and is

enhanced by a dedicated Cyber Security

Awareness function. The cyber awareness

training outlines user responsibilities in

protecting Rio Tinto’s information assets, the

acceptable use of information and electronic

resources (including specific areas such as

information classification and handling,

appropriate internet use, email use and

mobile device protection) and general

awareness regarding specific cyber security

threats. Role-based security training is also

provided to key system support personnel

with assigned privileged roles and

responsibilities. The training must be

completed before they are authorised to

access the information system, perform

assigned duties, or when key changes have

been made to the information system. All

employees and contractors are required to

formally acknowledge their understanding

and acceptance of the training upon

completion. Our Cyber Security Awareness

function also provides communications,

events, on-demand materials and

presentations, and a suite of cyber safety

shares integrated into Health, Safety,

Environment and Security processes.

In recognition of the role all employees play

in the cyber security risk management

process, clear expectations for data privacy,

cyber security, and handling of confidential

information are set out in The Way We

Work. These state that all employees must:

i) understand that cyber security is also their

responsibility and what they do with

electronic devices can weaken or

strengthen Rio Tinto’s cyber security; ii)

adhere to our Acceptable Use of Information

and Electronic Resources Standard; iii)

complete the mandatory cyber awareness

training; iv) remain vigilant and report

anything suspicious to the Cyber Security

team; and v) never consciously try to

bypass any cyber security control.

US Disclosure continued

360 Annual Report on Form 20-F 2023 | riotinto.com

To extend protection to third parties we

conduct security risk assessments upon

engaging a third party. We also share our

policies and expectations with third parties,

and apply standard clauses within

contractual agreements, enabling a program

of risk-based compliance assessments to

be conducted across the third parties we

engage. 

–Detect events

We persistently monitor network traffic and

system logs through our monitoring

function. This includes automated alerting of

anomalous events, and the triage and

response initiation for these. A key capability

of the function is to continuously test, refine

and optimise our monitoring and alerting

framework which we do by simulating cyber

events and leveraging industry datasets and

knowledge. 

In addition to technical monitoring, we

maintain reporting and communication

channels, allowing all users and third parties

to report any anomalies or incidents they

observe. This includes anonymous reporting

via our whistle-blower processes.

For situations where the first indicator of an

event may be a system issue or outage, our

Critical Incident Management and Cyber

Incident Response functions have

established ways of working to ensure the

earliest detection of any cyber security

events.

–Respond

For identified cyber security events, the

24-7 Cyber Incident Response function will

take action to contain, analyse and

remediate. A defined triage process guides

the assessment of the impact to determine

the level and urgency of the response

required, and to trigger the critical incident

management process as required.

Throughout the response we maintain

incident records which include an

assessment of the scale of potential and

verified impacts. Impact thresholds trigger

disclosures to governance bodies including

the CSSC, Chief Legal Officer and the

Disclosure Committee.

This response function is regularly

exercised to test the speed and

effectiveness of response. Internal

processes and agreements with our

partners enable us to scale the function

rapidly in the case of major events. Our

incident response function also has defined

points of integration with other functions

such as business resilience, corporate

communication and networks.

Cyber security leverages a combination of

tools for detecting and responding to

incidents across all our operations. These

include, but are not limited to, endpoint

detection and response, network, identity

and access management, email, cloud

platform, and industrial and operational

technology monitoring tools. For incidents

not detected and responded to through

automated means, Cyber Security use a

security information and event management

solution (Microsoft Sentinel) for log

aggregation and analysis, with specific rules

configured to alert on anomalous or

suspicious behaviour. Incidents are

managed and tracked in Jira, which

integrates with the Microsoft Security stack.

The tooling is supported by a number of

people and process related controls which

ensure incidents are identified in an

accurate and timely manner.

–Recover

Recovery plans in place for critical

applications cover the steps and actions

required to restore services in the case of a

cyber security incident. In addition to

information system recovery plans, our

overall Business Resilience and Recovery

Program may trigger the formation of

business resilience teams to execute

business continuity and recovery plans, as

well as handling crisis communications,

governance and disclosures. The business

resilience management plan for our IT

function is tested annually.

To ensure the readiness and effectiveness

of recovery plans, we run training programs

for all accountable persons and involve

them in simulated events which are run to

test and improve response capability. For

any simulation or actual event, a debrief

occurs to capture lessons learnt. These are

then shared and reported on to ensure the

lessons drive continuous improvement of

our recovery processes.

–Assure and improve

Our cyber security risk management

process includes ongoing inspection and

assurance to test the cyber security of our

environment and of our third parties, which

is key to addressing weaknesses before

they are exploited.

In 2023, neither Rio Tinto nor any third

parties who operate our IT systems and

processes, were exposed to cyber security

threats or any risk which will or may be

reasonably likely to materially affect our

strategy, performance or financial position.

However, the growing reliance on

technology to underpin productivity is

increasing the breadth and magnitude of

operational disruption exposures. As a

result, we are initiating a program to simplify

cyber security governance and improve 

the integrity, consistency and monitoring of

key cyber security controls. We will focus on

uplifting the skill and capability of IT

relationship managers and owners of IT risk,

with the goal of improving cross-functional

collaboration in assessing local exposures

to cyber security risk, and enhancing the

breadth and depth of cyber security

business impacts assessments. We are

also investing in strengthening our core

cyber security capabilities such as our

Threat Intelligence function to ensure we

remain aware and vigilant of the threat

landscape.

–Third party cyber security requirements

Each component of our cyber security risk

management framework considers the role

of third parties we engage, and supports

adaptation of our controls for all third party

relationships.

For each third party working with us or

managing our systems and data, cyber

security is considered within the process of

on-boarding and managing the relationship.

Some of the specific requirements we make

publicly available for any third parties who

engage with us are:

*Third Parties must ensure their information

technology and other business systems

meet the following general requirements

when providing products/services to the

Group or otherwise interfacing with Rio

Tinto’s enterprise and industrial and

operational technology systems:

1.Any technology systems utilised or services

provided by the third party must not expose

Rio Tinto to material cyber security risk.

2.An appropriate cyber security risk

assessment has been conducted on

relevant own and any third party systems in

particular; identifying key technical, and

compliance measures required to ensure

the confidentiality, integrity and availability of

information is maintained; and ensuring that

control measures applied are

commensurate with assessed risk. The

results of any risk assessment will be made

available to us on request.

3.Key technology systems have response and

recovery plans, with recovery plan testing

being undertaken periodically to ensure

procedures and controls are effective and

services are able to be restored as soon as

possible.

4.On termination of the relationship with us,

third parties must ensure the return, or the

destruction, of Rio Tinto information being

held; any access to the Rio Tinto

environment is terminated; and any Rio

Tinto intellectual property is appropriately

transitioned back to Rio Tinto.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 361

5.If access is required to any Rio Tinto

information technology or business

systems, the third party must ensure: (i)

access must be appropriately restricted to

only the personnel requiring access; (ii)

access procedures must cover

identification, authentication, authorisation

and auditing requirements; (iii) each user

identity requiring access to Rio Tinto

systems is linked to or owned by a uniquely

identifiable individual; (iv) users, devices,

and other assets are authenticated (eg

single-factor, multi-factor) commensurate

with the risk of the transaction; (v) where

access is required from outside the Rio

Tinto network, multi-factor authentication

must be used for client access; and (vi)

information related to, or generated by,

account management activities must be

documented and retained for auditing

purposes.

6.If remote access to any of our systems are

required, third parties must ensure: (i)

remote access is securely designed and

managed; (ii) access is provided only to

authorised parties for valid business

reasons; (iii) access is revoked where no

longer required; (iv) they will follow the

required minimum technical controls to

support the secure operation of remote

access as specified by Rio Tinto; and (v)

they will periodically review and monitor

such remote access when no longer

required.

7.Third parties must also do all things

reasonably required to ensure our network

integrity remains protected. To ensure our

information is protected, third parties must

ensure (where applicable) to:

–Establish and maintain effective change

control processes including: (i)

determining the types of changes to the

third parties' information system that are

configuration-controlled, with explicit

consideration for security impact

analyses; (ii) documenting configuration

change decisions associated with the

third parties' information system; (iii)

complying with Rio Tinto’s applicable

change management processes; and (iv)

retaining adequate records of

configuration-controlled changes to the

third parties' information system, to be

provided to Rio Tinto on request.

–Maintain response and recovery plans

incorporating the following: (i) Disaster

Recovery Plans (DRPs) for critical

systems, incorporating essential service

continuity, response and recovery

requirements for these systems, and

taking into consideration relevant cyber

security threats and scenarios; (ii) DRP

testing on a periodic basis to ensure

procedures and controls are effective,

and services restored are able to be

restored within parameters.

8.Third parties must ensure appropriate

encryption standards are applied to Rio

Tinto information, including: (i) information

classified by Rio Tinto as “Confidential” or

“Highly Confidential” when stored on

computer storage devices designed to be

inserted and removed from a computer/

system, including but not limited to optical

discs and USB flash drives (removable

media), or back-up media at off-site

premises; and (ii) information exchanged

through the internet, irrespective of its

classification.

9.Third parties must: (i) ensure that all

removable media is protected and its use

restricted only to relevant personnel; (ii)

maintain documented procedures for the

management of removable media, including

the specification of approved media,

processes of handling and disposal, as well

as the technical enforcement of controls;

and (iii) comply with any security controls for

removable media reasonably required by

us, and provide details of such compliance

to us.

US Disclosure continued

362 Annual Report on Form 20-F 2023 | riotinto.com

Summary disclosure of

operations pursuant to Item

1303 of SK-1300 under

Securities Act of 1933

Overview of operations

Rio Tinto is a mining and metals company with

over 60 operations and projects and

approximately 49,000 employees in 35

countries across six continents, including in

Australia, North and South America, Europe,

Asia and Africa. Rio Tinto owns and operates

open pit and underground mines, mills,

refineries, smelters, power stations and

research and service facilities to produce iron

ore, copper, aluminium, diamonds, gold and

industrial minerals products, which it delivers to

customers using its own railways, ports and

ships.

The map below sets out the locations of

Rio Tinto’s operations and assets globally.

For additional details regarding the location of

each of Rio Tinto’s mining properties, see

Mineral Reserves and Mineral Resources on

pages 300-321. See also Mines and Production

Facilities on pages 324-342 for a summary of

the ownership interests, operators, titles and

leases (including acreage involved), stages of

the properties, key permit conditions, mine

types and mineralisation styles and processing

plants related to Rio Tinto’s operations. Further,

information regarding the aggregate production

for Rio Tinto’s operations for the last three fiscal

years can be found on pages 297-298.

Summary of Mineral Resources and

Mineral Reserves

For a summary of the amount and grade of

Rio Tinto’s Measured, Indicated and Inferred

Mineral Resources by type and geographic

area, as determined by a Qualified Person as

of 31 December 2023, see Mineral Resources

on pages 312-321.

For a summary of the amount and grade of

Rio Tinto’s Proven and Probable Mineral

Reserves by type and geographic area, as

determined by a Qualified Person as of 31

December 2023, see Mineral Reserves on

pages 300-311.

Individual property

disclosure pursuant to Item

1304 of SK-1300 under

Securities Act of 1933

Rio Tinto tested each of its properties to

determine which are material to the Group

based on the previous financial year reporting

as follows:

Short term value – where underlying earnings

for the current and next year constitute >10%

of Group underlying earnings.

Medium term value – where underlying

earnings over the remainder of the 10-year

plan are anticipated to constitute >10% of

Group underlying earnings on average; and

the Mineral Reserves constitute >10% of

Group Mineral Reserves (on a CuEq basis).

Long term value – where the Mineral Reserves

constitute >20% of Group Mineral Reserves

(on a CuEq basis).

Qualitative value – where the company takes a

qualitative view on the importance of the

project based on criteria including but not

limited to planned expenditure, strategic

importance, or media coverage.

Based on these tests, the Pilbara Operations

(>10% earnings and >10% Mineral Reserves),

Escondida (>10% Mineral Reserves), Oyu

Tolgoi (>10% Mineral Reserves and qualitative

factors including planned expenditure, strategic

importance and media coverage) and

Simandou (qualitative factors including

planned expenditure, strategic importance and

media coverage) are considered material to

the Group and hence require individual

property disclosure and the submission of a

Technical Report Summary for each pursuant

to Items 1302 and 1304 of SK-1300,

respectively.

Managed and non-managed operations

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 363

The following disclosure provides a brief

description of the individual properties which

Rio Tinto considers material to its business

and financial condition.

Pilbara operations

Property overview

Rio Tinto owns and operates an integrated

portfolio of iron ore assets in the Pilbara region

of Western Australia comprising a network of

17 iron ore mines, four port terminals, an

1,890 km rail network and other infrastructure

(Pilbara Property).

The Pilbara Property includes Mineral

Resources and Mineral Reserves which are

dispersed across the Pilbara region over an

area of approximately 70,000 square km

across the Hamersley Province of Western

Australia, located on the southern margin of

the Pilbara Craton. The Pilbara Property lies

within the volcanic and sedimentary rock

sequence of the Mount Bruce Supergroup,

which contains the 2,500 m thick Hamersley

Group, the main host to iron ore deposits,

characterised by around 1,000 m of laterally

extensive Banded Iron Formation (BIF).

Mineralisation at the Pilbara Property may be

grouped into three categories by genesis. BIF

Derived Iron Deposits (BIDs) (Boolgeeda,

Brockman, and Marra Mamba), Channel Iron

Deposits (CIDs), and Detrital Iron Deposits

(DIDs). The five ore type categories defined for

reporting Mineral Resources are Boolgeeda,

Brockman, Marra Mamba, CID, and DID.

All mines operated by Rio Tinto at the Pilbara

Property are open pit mines. The mining

method employed uses conventional surface

mining, whereby shovels and loaders are used

to load drilled and blasted material into trucks

for removal to waste dumps or feed process

plants.

For SEC reporting purposes the Pilbara

operations are considered a production stage

property. The location of the operations is shown

in the location map and is centred around

Latitude 22° S, Longitude 118° E.

In addition to mining activities, Rio Tinto

conducts both exploration and development

activities across the property.

History

Rio Tinto commenced exploration in the

Hamersley Ranges in 1962 through its

subsidiary Conzinc Riotinto of Australia (CRA)

following the easing of the Australian

Government’s iron ore export embargo in

November 1960 and the subsequent issue of

exploration permits, which laid the foundation

for the development and growth of the iron ore

industry in the Pilbara region.

Rio Tinto’s initial first full calendar year of

production commenced by Hamersley Iron in

1967, mining 6.2 Mt and shipping 3.6 Mt of

iron ore, supported by a workforce of some

4,500 employees. As of 31 December 2023,

the Pilbara Property had over 17,000

employees and contractors operating a total of

17 mines. For a full description of the history

of the previous operations (including identities

of the previous operators) of each of the mines

which makeup Pilbara, see Mines and

Production Facilities on pages 324-342.

Infrastructure

Roads

Rio Tinto operates and maintains nearly

10,000 km of roads and tracks at the Pilbara

Property. Approximately 360 km are sealed

roads located within mine sites or between

mine sites and public roads. The remaining

are unsealed with approximately 80%

classified as tracks and 20% classified

as roads.

Rail

Rio Tinto’s railway at Pilbara is the largest

privately owned, operated, and maintained

railway in the world. Approximately 1,890 km

of track infrastructure, connects the 17 mine

sites to two ports. The track includes an

integrated control signalling system and is

further supported by the Pilbara

communication, train control and AutoHaul®

systems. The Rio Tinto railway at the Pilbara

Property operates and complies under the

requirements set by the Office of the National

Rail Safety Regulator in Australia.

The rail network is made up of 54 rail bridges,

1,188 cuttings and embankments, three road

bridges, 53 active level crossings, 5,400

culverts, 644 turnouts and over 2,000 km of

sealed and unsealed access roads. The track

maintenance machine fleet includes mainline

grinders, switch grinders, tampers, regulators,

mobile flash butt welders, a ballast cleaner

and several earth-moving assets.

Rio Tinto’s railway at the Pilbara Property

operates and complies under the requirements

set by the Office of the National Rail Safety

Regulator in Australia.

US disclosure continued

364 Annual Report on Form 20-F 2023 | riotinto.com

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 365

Port facilities

The Pilbara Property’s mining assets are

facilitated by port facilities in Dampier and

Cape Lambert in North-Western Australia.

These facilities include car dumping,

conveying, stacking, reclaiming, screening and

ship loading assets. One facility includes

crushing and assets to handle crushed and

deslimed ore from the Robe Valley operations.

Stockyards allow for product management and

blending to obtain the requisite specification

requirement. There are seven operational

wharf facilities with a total of 14 marine berths

protected by berthing dolphins. Cape Lambert

marine berths are capable of berthing vessels

up to 280,000 deadweight tonnage. Further,

Rio Tinto owns a fleet of tugs for the

management of vessels during arrival and

departure from the wharfs for the Pilbara

Property.

Potable water and wastewater

Water supply for the towns, mines, rail, ports,

and camps at the Pilbara Property is provided

by production and dewatering bores at the

Pilbara Property, and from the Water

Corporation of Western Australia. Water supply

systems at the Pilbara Property incorporate

drinking water source protection plans, bores,

pipelines, pumps and storage tanks and water

treatment and disinfection assets. Wastewater

from towns, mines, rail, ports and camps at the

Pilbara Property is collected by the Rio Tinto

managed sewerage systems and treated by

onsite wastewater treatment facilities. Water

supply and wastewater systems are regulated

by Australian regulators (the Economic

Regulation Authority, the Department of Water

and Environmental Regulation and the

Department of Mines, Industry Regulation

and Safety).

Power supply

Rio Tinto operates and maintains the power

generation and transmission network within the

Pilbara Property. There are four power stations

operating a total of twelve gas turbine

generators located at Karratha (five), Cape

Lambert (two), Paraburdoo (three) and West

Angelas (two).

The network load varies seasonally between

200-300 megawatts (MW) with gas provided by

the Dampier to Bunbury Nature Gas Pipeline

and the Goldfields Gas Pipeline. The

transmission network is predominantly 220

kilovolts (kV) with 790 km of overhead

transmission line and a 132kV transmission

line between Cape Lambert and Pannawonica

totalling 175 km. There are three 220kV

switching stations and twelve bulk terminal

substations located near the port and mine

operations where the transmission voltage is

stepped down to 33kV for distribution within

the facilities. Rio Tinto is also the network

operator for the towns of Tom Price,

Paraburdoo, Wickham, Dampier, and

Pannawonica.

Personnel

Personnel are engaged on either a residential

or fly-in-fly-out basis, sourced from capital and

regional centres in Western Australia.

Age, modernisation and condition of the

equipment and facilities

The infrastructure, equipment and facilities

within the Pilbara Property vary considerably in

age, and many have been subject to

brownfields development since original

construction. All infrastructure, equipment and

facilities within the Pilbara Property are subject

to an ongoing regime of sustaining capital

investment and maintenance, underpinned by

asset integrity audits, engineering inspections,

engineering life cycles for key equipment and

safety inspections and audits.

Book value

For the book value for the Pilbara Property,

see Rio Tinto Financial Information by

Business Unit on pages 286-288.

Titles, rights and permits

Title details

In Western Australia, all minerals are the

property of the Crown with few exceptions.

A mining title must be obtained before any

prospecting, exploration or mining activities

can be carried out. In Western Australia, the

Mining Act 1978, Mining Act 1904, Mining

Regulations 1981 and various State

Agreements provide the framework of rights

and obligations which govern most of

Rio Tinto’s exploration and mining activities.

Conditions on the grant of mining tenements

include the requirements to meet specific

reporting and expenditure commitments, which

have been met as of the date of this Form 20-F

filing.

Mineral rights

The Pilbara Property Mineral Resources and

Mineral Reserves are held under a

combination of State Agreement mining and

mineral leases, exploration licences and

mining leases under the Mining Act 1978 and

temporary reserves held under the Mining Act

1904. State Agreement mining and mineral

leases and mining leases under the Mining Act

are granted for a period of 21 years and are

typically renewable for further periods of 21

years.

Exploration licences applied for prior to 10

February 2006 are initially for a five year term

and are renewable for two periods of either

one or two years and are then renewable for

periods of one year. Exploration licences

applied for after 10 February 2006 are initially

for a five year term and are renewable for an

additional five year term and then periods of

two years. Renewal of exploration licences is

subject to satisfying prescribed criteria.

Temporary reserves are renewed for a one

year term. The renewal of all tenure at the

Pilbara Property is maintained by the tenure

and geographical information systems team.

Further, a tenement database provides

reminder notices of pending renewals and

renewal procedures are adhered to in

accordance with established guidelines.

US disclosure continued

366 Annual Report on Form 20-F 2023 | riotinto.com

The following table lists the Rio Tinto mining leases containing the Pilbara Property Mineral Reserves. This is a subset of the 114 tenements held

across the Pilbara Property, covering approximately 409,000 Ha.

Lease	Holder	Type	Area (Ha)
ML4SA	Hamersley Iron Pty. Limited	SA Mineral Lease	79,329
M272SA	Hamersley Iron Pty. Limited	SA Mineral Lease	14,136
ML252SA	Mount Bruce Mining Pty Limited	SA Mineral Lease	47,406
ML246SA	Hamersley Iron Pty. Limited	SA Mineral Lease	12,950
M265SA	Channar JV	SA Mineral Lease	5,956
M274SA	Hamersley Iron - Yandi Pty Limited	SA Mineral Lease	30,550
M282SA	Hope Downs JV	SA Mineral Lease	57,222
ML248SA	Robe River Ltd	SA Mineral Lease	78,600

Permitting requirements

Rio Tinto conducts various environmental

studies as needed to support operations and

for compliance with regulatory obligations.

Baseline studies are undertaken to inform

formal impact assessment processes in

accordance with provisions under the

Environmental Protection Act 1986, and where

relevant, the Environment Protection and

Biodiversity Conservation Act 1999.

Mining related activities require additional

approvals under the Mining Act 1978.

A significant proportion of the Pilbara Property’s

Mineral Reserve estimate is located within

existing permitted operating mining areas with

two pending proposals covering deposits

included in the estimate, Greater Paraburdoo

(pending approval) and Brockman Syncline

(referred for assessment). Both projects are in

advanced stages of study.

The Pilbara Property also operates under

several Indigenous Land Use Agreements and

other agreements with traditional owner

groups, which include matters such as, but not

limited to, commitments for payments made to

trust accounts, indigenous employment and

business opportunities and heritage and

cultural protections.

Encumbrances

There are no known significant encumbrances

to the Pilbara Property’s Mineral Resources or

Mineral Reserves.

For further details regarding the titles, leases

and rights for each of the mines in the Pilbara

Property, see Mines and Production Facilities–

Pilbara on pages 324-327.

Mineral Resources

The table on pages 314-315 of this Form 20-F

sets out the amount and grade, of the Pilbara

Property’s Measured, Indicated and Inferred

Mineral Resources for the year ended 31

December 2023 for the Pilbara Property

(Australian Iron Ore operations). Mineral

Resources are reported as in situ estimates.

Compared to the year ended 31 December

2022, there was a 6% decrease in Measured and

Indicated Resources and a 6% increase in

Inferred Resources for the year ended 31

December 2023.  This is due to the net effects of

the addition of new Mineral Resources and the

conversion of Mineral Resources to Mineral

Reserves.

The Mineral Resource estimate is based on

the following assumptions:

–Exclusive of Mineral Reserves – Mineral

Resources are reported exclusive of

Mineral Reserves.

–Moisture – All Mineral Resource tonnages

are estimated and reported on a dry basis.

–Mining Factors or Assumptions – It is

assumed that standard open pit load and

haul mining operations used by Rio Tinto

will be applicable for the mining of Mineral

Resource ore.

–Cut-off – Currently, Rio Tinto reports Mineral

Resources by deposit type (BID further sub-

divided by geological formation, CID and

DID). In addition to this, Rio Tinto sub-

divides iron mineralisation for reporting

Mineral Resources typically using the

following criteria:

–High-grade Brockman Ore using a iron

(Fe) cut-off grade (≥ 60% Fe).

–Brockman Process Ore is reported as ≥

50% Fe <60% and ≥ 3% alumina (Al2O3)

< 6% where geology is coded as Joffre

Member, Dales Gorge Member or

Footwall Zone.

–High-grade Marra Mamba Ore is reported

≥ 58% Fe where geology is coded as

Newman Member, MacLeod Member, or

Nammuldi Member.

–Boolgeeda Ore is reported as High Grade ≥

60% Fe and Blending Aluminous as ≥ 55%

Fe < 60% and ≥ 3% Al2O3 < 6.5%.

–Detrital ores are reported in relation to

their Bedded Ore origins; ≥ 58% Fe for

Marra Mamba detritals, ≥ 60% Fe for

Brockman detritals or Boolgeeda detrital

ores are reported as High Grade ≥ 60%

Fe and Blending Aluminous as ≥ 55% Fe

< 60% and ≥ 3% Al2O3 < 6.5%.

–CIDs are reported primarily based on

strand (geological subdivision), but with

some exceptions where a cut-off grade is

applied based on metallurgical

processing recovery assumptions.

In addition, Mineral Resources are

reported for major strands only.

–Metallurgical Factors or Assumptions – It is

assumed that crushing, screening and

beneficiation processes used by Rio Tinto will

be applicable for the processing of reported

Mineral Resources. Predicted yield and

upgrade are deposit specific and are based on

metallurgical test work conducted on

representative samples collected from those

deposits or adjacent analogous deposits.

–Environmental Factors or Assumptions –

Extensive environmental surveys and

studies will be completed during the project

study phases to determine if the project

requires formal State and Commonwealth

environmental assessment and approval.

Mapping of oxidised shales, black

carbonaceous shales, lignite, and the

location of the water table, is used to predict

and manage potential environmental

impacts.

–Heritage Factors or Assumptions –

Extensive cultural heritage studies, surveys

and engagement with traditional owners will

be completed during project study phases

to determine if projects require additional

assessment, monitoring, or exclusion areas

to be maintained during mining, to manage

potential impacts to sites and cultural

values.

For more information regarding the material

assumptions for the Mineral Resource estimates,

see Section 11 of the Pilbara Operations

Technical Report Summary filed as exhibit 96.1

to this Form 20-F for the year ended 31

December 2021 (“2021 Form 20-F”).

Mineral Reserves

The table on pages 302-303 of this Form 20-F

sets out the amount, grade, prices and

metallurgical recovery of the Pilbara Property’s

Proven and Probable Mineral Reserves for the

year ended 31 December 2023 (Australian

Iron Ore operations).

Compared to the year ended 31 December

2022, the Mineral Reserves increased by less

than 1%. Changes were due to mining

depletion, which was offset by addition of new

deposits and changes to cut-off grade. Other

minor changes are attributed to updated

geology models and changes to pit designs for

various reasons.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 367

The Mineral Reserves estimates are based on

the following assumptions:

–Geological model – Orebody block models

(OBMs) are developed for Mineral

Resource reporting within each mining area

and form the basis of the Mineral Reserve

estimates.

–Moisture – Geology models contain tonnage

estimates on a dry in situ basis. During

generation of the OBMs, the estimated water

content (moisture) for each block model block

is added. The moisture estimate includes

consideration of material physical properties

and hydrogeology. By including both dry

tonnes and water content in the block models,

estimates for dry and wet tonnages can be

determined from the block models as required

for planning, reporting or any other purpose.

Metallurgical regressions are applied to dry

material. From this, expected water content is

predicted for each product, allowing reporting

of wet product tonnes by combining the dry

tonnes and moisture content.

–Metallurgical and processing recoveries –

Metallurgical and processing recovery

estimates are applied to crusher feed

tonnages based on the processing plant

type. Dry crushing and screening plants

achieve a recovery of 100%. Wet plants

achieve typical recoveries of 85 to 92% (dry

basis) for the Marra Mamba and Brockman

ores. Processing of pisolite ores results in

recoveries ranging from 50% to 90% due to

the relatively higher and more variable clay

content. The beneficiation plant yield is

approximately 60% to 70%.

–Cut-off – The key determinant for the

classification of material into ore and waste is

the target product specification of the various

iron ore products. Whether a particular parcel

of material has economic value or not does not

depend on the characteristics of the parcel

itself, but on its potential contribution to a

material blend. Target product specifications

determine the quantity of saleable ore that can

be economically extracted from the orebodies,

and thus the reported Mineral Reserve.

The cut-off grade for the reported Mineral

Reserve is not based on calculation of a

break-even content of a payable mineral,

or similar economic break-even analysis.

The primary parameter for determining if

material is ore or waste is iron content.

Deleterious elements such as phosphorous or

alumina can also influence the ore-waste

determination. Iron cut-off grade ranges for the

different material types can be seen below:

Ore Type	Cut-off Range (Fe%)
Yandicoogina Pisolite	55%
Robe Valley Pisolite	53-55%
Brockman	57-60%
Marra Mamba	56-58%

–Methodology – A mining schedule that fully

consumes the scheduling inventory for

Pilbara is developed from the prepared

OBMs. To demonstrate economic viability of

the Mineral Reserves, economic modelling

is completed. Material is only reported as

Mineral Reserve if the level of geological

certainty is sufficient to allow a Qualified

Person to apply the modifying factors in

sufficient detail to support detailed mine

planning and economic viability of

the deposit.

For more information regarding the material

assumptions for the Mineral Reserve

estimates, see Section 12 of the Pilbara

Operations Technical Report Summary filed as

exhibit 96.1 to the 2021 Form 20-F.

Exploration

The following information can be found in

Section 7 of the Pilbara Operations Technical

Report Summary filed as exhibit 96.1 to the

2021 Form 20-F.

Rio Tinto has an ongoing, active programme

of exploration over various parts of the Pilbara

Property. During 2023, 381,000 m of drilling was

completed on programmes that are aimed at

discovery and development of Rio Tinto’s iron ore

deposits in the Pilbara Property.

Surface exploration activities are also

undertaken as part of geological mapping

programmes over areas where there are

no or limited mining activities. A small number

of grab samples (1-3 kg) are collected when

required.

The following table provides a summary of the exploration drilling across the Pilbara Property.

Exploration / Mining Area	Total drill holes by drill type				Total drill metres by drill type
	P/A/V	RC	DD	U	P/A/V	RC	DD	U
Greater Brockman	2,600	36,357	1,836	81	147,700	2,598,790	152,430	2,383
Greater Tom Price	8,267	10,898	1,298	61	493,017	855,565	117,814	2,958
Greater Paraburdoo	6,950	9,616	861	29	501,178	672,824	89,378	2,947
Robe Valley	1,457	26,594	8,194	3,467	34,517	1,040,595	412,453	91,953
West Pilbara	584	5,333	272	146	26,567	338,853	11,839	5,061
Greater West Angelas	615	26,383	1,776	3,291	20,647	2,033,011	152,001	221,291
Gudai-Darri	774	16,122	565	17	40,734	1,026,073	36,837	252
Greater Hope Downs	173	19,217	1,261	157	5,154	1,500,525	120,056	7,685
Yandicoogina	211	4,441	5,647	25	9,722	300,923	308,305	1,385
East Pilbara	1,816	9,642	410	26	136,305	914,509	44,335	2,360

Notes: DD = Diamond, RC = Reverse Circulation, P/A/V = Percussion, Aircore, Vacuum. U = Unknown.

US disclosure continued

368 Annual Report on Form 20-F 2023 | riotinto.com

Current drilling techniques at the Pilbara Property

are reverse circulation (RC) drilling and diamond

drilling (DD). RC holes are sampled in 2 m

composites and collected in alpha-numerically

numbered calico bags. Due to potential fibre

mineral intersections, water injection has been

used throughout the programmes since 2014. ‘A’

and ‘B’ splits are collected and always taken from

the same respective chute of the splitter, keeping

any possible biases constant. Regular cleaning

of the splitter and cyclone is undertaken to avoid

smearing and contamination across intervals.

Respective splits are laid out in separate rows on

the ground adjacent to bulk reject samples,

avoiding mixing of bags and ensuring only ‘A’

sample splits are collected and sent to the

laboratory. The particle size of RC chips is

around 6 mm and the primary sample collected

post splitting is between 5 and 8 kg, depending

on the density of the material.

Each diamond hole is sampled in 1 m

composites using a ‘crushing sheet’ created

by a geologist and collected in alpha-

numerically numbered calico bags (the

‘crushing sheet’ allocated bag numbers to

each metre drilled and showed where check

standards are to be inserted).

Field check standards are inserted selectively

by the rig/logging geologist at a rate of one in

every 30 samples in mineralised zones and

one in every 60 samples in waste with a

minimum of one per drill hole. All check

standards contained a trace of strontium

carbonate that is added at the time of

preparation. These standards are used to

check sample preparation and analytical

precision and accuracy at the laboratory. No

direct recovery measurements of RC samples

are performed. Sample weights are recorded

at the laboratory upon receipt and are

qualitatively estimated for loss per drilling

interval at the rig. Diamond core recovery is

maximised via the use of triple-tube sampling

and additive drilling muds. Diamond core

recovery is recorded using rock quality

designation measurements with all cavities

and core loss recorded. Sample recovery in

some friable mineralisation may be reduced

however it is unlikely to have a material impact

on the reported assays for these intervals.

There were no other factors that materially

affected the accuracy or reliability of the

results recorded.

Geological logging is performed on 2 m intervals

for all RC drilling and either 1 m or 2 m intervals

for diamond holes, depending on the level of

detail required. Magnetic susceptibility readings

are recorded for each interval. All diamond drill

core is photographed. Since 2001, all drill holes

have been logged geo-physically for gamma

trace, calliper, gamma density, resistivity and

magnetic susceptibility. Open-hole acoustic and

optical televiewer image data is collected in

specific RC and diamond holes throughout the

deposit for structural analyses.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 369

Escondida

Property Overview

Escondida is a leading producer of copper

concentrate and cathodes located in the

Atacama Desert in northern Chile, 170 km

southeast of Antofagasta, Chile at an elevation

of approximately 3,100 m above sea level.

It is a production stage property operated by

Minera Escondida Limitada (MEL) consisting

of the Escondida deposit and Escondida Norte

deposit. The location of the operations centred

upon the two pits are listed and shown in the

location map:

–Escondida: Latitude 24°16’ S, Longitude

69° 04’ W

–Escondida Norte: Latitude 24°13’ S,

Longitude 69° 03’ W

Escondida is a non-managed joint venture.

Escondida consists of a series of porphyry

deposits containing copper, gold, silver and

molybdenum and includes two active surface

open pit mines in production (the Escondida

deposit and Escondida Norte deposit) with ore

being processed through three processing

options (oxide leach, sulphide run of mine

leach and conventional flotation

concentrators). The processing plants at

Escondida include the Los Colorados, Laguna

Seca Line 1 and Laguna Seca Line 2

concentrators. Escondida also includes the

oxide leach facility, SL run of mine leach

facility and SX/EW facility.

For SEC reporting purposes, Escondida is

considered a production stage property.

In addition to mining activities, MEL conducts

both exploration and development activities

across the property.

History

Utah International Inc. (Utah) and Getty Oil Co.

(Getty) commenced geochemical exploration in

the region in 1978 which led to the discovery of

the Escondida deposit in 1981. In 1984 through

corporate acquisitions, BHP acquired the

Escondida property. Ownership changed in 1985

to a joint venture between BHP (57.5%), Rio

Tinto Zinc (30%), JECO Corporation (10%) and

World Bank (2.5%). The joint venture undertook

all the subsequent exploration and development

work to bring Escondida into operation in 1990.

The first cathode was produced in 1998 from the

oxide leach plant, and in 2006 the sulphide leach

plant was inaugurated, one year after the start of

production at the Escondida Norte pit. The third

concentrator plant was commissioned in 2016.

Current ownership since 2010 is BHP (57.5%),

Rio Tinto (30%), JECO Corporation (10%) and

JECO 2 Limited (2.5%). MEL operates

Escondida.

For further details regarding the history for the

Escondida property, see Mines and Production

Facilities-Escondida on page 328.

Infrastructure

All required infrastructure supporting the

current mine plan including roads, rail and

port, power and water supply is in place.

Access to Escondida is via a company

maintained public road from the city of

Antofagasta in northern Chile, which is

serviced by the regional airport.

The site infrastructure, centred on the two pits,

includes three concentrator plants, one heap

and one dump leaching process facilities,

associated cathode production plant,

tailings deposit, along with support and

service facilities.

Two MEL owned and operated seawater

desalination plants are located at Punta

Coloso on the Antofagasta coastline and

supply water for processing plants, mine

operations and supporting infrastructure via

three pipelines to the mine site. Water is

recycled from the tailings dam for re-use in the

concentrator plants.

The nearby Coloso port facility receives

copper concentrate via a pipeline from the

mine site and processes this to a dry

concentrate ready for stockpiling and loading

via a dedicated concentrate shiploading

facility. Both concentrate pipeline and port

facilities are owned and operated by MEL.

Additional third-party owned port infrastructure

is located at Antofagasta, including rail, train

unloading and ship loading facilities.

US disclosure continued

370 Annual Report on Form 20-F 2023 | riotinto.com

Escondida utilises an existing privately owned

railway system to transport copper cathode

product from site and consumables to site

through the ports of Antofagasta and

Mejillones. Escondida owns a minor rail spur

connecting the mine site into the publicly

owned railway.

Since 2022, Escondida has had contracts in

place with ENEL and Colbun for energy

purchase, both providing power from 100%

renewable sources.  Power from Tamakaya is

used as back up when required.

The power is supplied at 220kV and then

distributed throughout the operations to the

required locations via a series of substations.

The power transmission system that supplies

the mine site is owned and managed by MEL.

The workforce is a combination of employees

and contractors supporting the operations.

Operational personnel reside in on-site

accommodation at Escondida and are sourced

from Antofagasta or from other parts of Chile.

Titles, leases and permits

MEL holds a total of 764 mining concessions for

Escondida covering an area of 406,018 ha.

There are 18 principal mining concessions that

provide MEL with the right to explore and mine

indefinitely at Escondida, subject to payment of

annual license fees. All leases were obtained

through the legally established process in which

judicial requests are presented to the

Chilean state.

Lease name	Registered tenement holder	Expiry date	Surface area (ha)
Alexis 1/1424	Minera Escondida Ltda.	Permanent	7,059
Amelia 1/1049	Minera Escondida Ltda.	Permanent	5,235
Catita 1/376	Minera Escondida Ltda.	Permanent	1,732
Claudia 1/70	Minera Escondida Ltda.	Permanent	557
Colorado 501/977	Minera Escondida Ltda.	Permanent	2,385
Costa 1/1861	Minera Escondida Ltda.	Permanent	9,159
Donaldo 1/612	Minera Escondida Ltda.	Permanent	3,060
Ela 1/100	Minera Escondida Ltda.	Permanent	500
Gata 1 1/100	Minera Escondida Ltda.	Permanent	400
Gata 2 1/50	Minera Escondida Ltda.	Permanent	200
Guillermo 1/368	Minera Escondida Ltda.	Permanent	1,785
Hole 14	Minera Escondida Ltda.	Permanent	1
Naty 1/46	Minera Escondida Ltda.	Permanent	230
Paola 1/3000	Minera Escondida Ltda.	Permanent	15,000
Pista 1/22	Minera Escondida Ltda.	Permanent	22
Pistita 1/5	Minera Escondida Ltda.	Permanent	9
Ramón 1/640	Minera Escondida Ltda.	Permanent	3,200
Rola 1/1680	Minera Escondida Ltda.	Permanent	8,400
Total			58,934

1.Unidad Tributaria Mensual (UTM) is a Chilean state tax unit valued in Chilean pesos (CLP) per hectare. The 2022 rate is 0.1 UTM. Annual payments are made at the end of the Chilean tax year

(end of March) for concessions.

In addition to mining concessions, Chilean law also regulates,

independently of mining concessions, the rights to the use of the

land surface. MEL owns 155,000 ha of surface rights at Escondida and

these are also renewable on an annual basis. These rights are also

obtained through legal process presented to the Chilean state

and potentially to other third party owners, including the Chilean

“Consejo de Defensa del Estado” as required, MEL’s main surface

rights for Escondida cover operational activities such as pits, dumps,

leach pads, plant and other infrastructure.

Infrastructure	Surface rights identifier1			Register	Regional office	Surface area (ha)
	Folio	Number	Year
Pits, waste dumps, leach pads, plants	619 V	964	1984	Hipotecas y Gravámenes	Bienes Raíces Antofagasta	22,084
Energy transmission lines, aqueducts, mineral pipelines, roads	1121 V	1,117	2018	Hipotecas y Gravámenes	Bienes Raíces Antofagasta	26,988

1.As defined by Chilean legal requirements

MEL also holds maritime concessions for the Coloso port facilities.

These concessions are requested through submission of the proposed

project to the Chilean Ministry of Defence and are

awarded by legal decree.

Encumbrances

There are no known significant encumbrances to the Escondida

property that would impact the current Mineral Resources and Mineral

Reserves.

For further details regarding the titles, leases and rights for the

Escondida property, see Mines and Production Facilities-Escondida on

page 328.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 371

Present condition of property

Continuous resource definition activities are

ongoing to upgrade Mineral Resources

understanding to support the mine plans and|

to develop Mineral Reserves. These activities

include drilling and in-pit mapping. Geological

understanding of the two deposits is supported

by a total of approximately 2,706 km of drilling

undertaken in a total of approximately 8,720

drill holes.

Surface mining is by drilling and blasting along

with shovel/excavator loading and truck

haulage from each of the two open pits.

Extracted sulphide ore undergoes crushing

prior to processing in one of three

concentrators with concentrate piped to the

Coloso port for drying. Lower grade sulphide

ore is directly dumped onto leach pads and is

processed by biological leaching. Oxide and

transitional ores are processed using heap

leaching. Leached products are converted to

copper cathode then railed to

Antofagasta port.

Age modernisation and condition of

the equipment and facilities

The infrastructure, equipment and facilities

within Escondida are of variable age.

Construction commenced at Escondida in

1998 with first production in 1990. A number of

expansion phases followed from 1993

onwards which included the development of

additional infrastructure to increase

production. Key milestones subsequent to first

production in 1990 relating to the development

of the operations were:

–1998 Acid heap leaching of oxides

commenced

–2002 Second concentrator (Phase 4)

inaugurated

–2005 Mining commenced at the Escondida

Norte deposit

–2006 Dump bio-leaching of sulphides

commenced

–2007 First desalination plant commenced

pumping

–2016 Third concentrator inaugurated

–2017 Second desalination plant

commenced pumping

–2020 Operation converted to 100% use of

desalination water

MEL undertakes planned maintenance

programs at Escondida and implements

scheduled replacements of mine fleet and

infrastructure components that are intended to

maintain continued reliable operation of

equipment, facilities and infrastructure to meet

operational requirements.

Book value

For the book value for Escondida, see

Rio Tinto Financial Information by Business

Unit on pages 286-288.

Geology and mineralisation

The Escondida deposit and Escondida Norte

copper deposit lie in the Escondida-Sierra de

Varas shear lens of the Domeyko Fault

System. The deposits are supergene-enriched

copper porphyries with primary sulphide

mineralisation associated with multiple phase

intrusions of monzonite to granodiorite

composition into host volcanics.

Primary mineralisation has undergone

secondary supergene leaching and

enrichment with associated local formation of

copper oxide mineralisation, predominately

brochantite. Supergene enrichment generated

laterally-continuous and sub-horizontal high-

grade sulphide mineralisation zones across

the deposit, predominately chalcocite and

covellite. The primary hypogene

mineralisation, present in the deepest parts of

the deposits is chalcopyrite with bornite.

Mineral Resources

The table on pages 316-317 sets out the

amount and grade of Escondida’s Measured,

Indicated and Inferred Mineral Resources for

the year ended 31 December 2023. Mineral

Resources for Escondida are reported as in

situ estimates and are being reported for the

first time in a filing with the SEC in accordance

with SK-1300 for the year ended 31 December

2023. Compared to the year ended 31

December 2022, there was no change in

Measured and Indicated Resources and a

9.5% increase in Inferred Resources as at 31

December 2023  due to the net effect of the

addition of new Mineral Resources and the

conversion of Mineral Resources to Mineral

Reserves.

The Mineral Resources estimate for Escondida is

based on the following assumptions:

–Exclusive of Mineral Reserves – Mineral

Resources are reported exclusive of

Mineral Reserves.

–Moisture – All Mineral Resource tonnages

are estimated and reported on a dry basis.

–Mineral Resources are estimated using

ordinary kriging.

–Escondida point of reference for the Mineral

Resources was mine gate.

–Escondida Mineral Resources cut-off criteria

used was Oxide ≥ 0.20% soluble Cu; Mixed

≥ 0.30% Cu; Sulphide ≥ 0.25% Cu for

mineralisation assigned to be processed via

leaching or ≥ 0.30% Cu for mineralisation

assigned to be processed via the

concentrator.

–Escondida metallurgical recoveries for

Oxide 54%; Mixed 41%; Sulphide 42% for

material processed by leaching or 85% for

material processed via the concentrator.

–The pit optimisation used to determine the

resources that have reasonable prospects

of economic extraction based on a copper

price of US$4.29/lb.

For more information regarding the material

assumptions for the Mineral Resources

estimates for Escondida, see Section 11 of the

Escondida Technical Report Summary filed as

exhibit 96.2 to this Form 20-F.

Mineral Reserves

The table on pages 304-305 sets out the

amount, grade, cut-off grade, price and

metallurgical recovery of the Escondida

Property’s Proven and Probable Mineral

Reserves for the year ended 31 December

2023. Compared to the year ended 31

December 2022, there was less than a 1%

increase in Mineral Reserves as at 31

December 2023 due to net impact of depletion

offset by increases in commodity pricing.

Material assumptions in the estimation of

Mineral Reserves for Escondida are:

–The resource model reflects the continuity

and complexity of the deposit with the

confidence stated in the classification.

–Variable cut-off grade strategy that

maximises throughput for the concentrator,

smelter and refinery.

–The point of reference for Mineral Reserves

was mine gate.

–Escondida Mineral Reserves cut-off criteria

used was Oxide ≥ 0.20% soluble Cu. For

Sulphide ≥ 0.30% Cu and where greater

than the variable cut-off of the concentrator.

Sulphide ore is processed in the

concentrator plants as a result of an

optimised mine plan with consideration of

technical and economic parameters in order

to maximise net present value. Sulphide

Leach ≥ 0.25% Cu and 70% or less of

copper contained in chalcopyrite and lower

than variable cut-off grade. Sulphide leach

ore is processed in the leaching plant as an

alternative to the concentrator process.

–Escondida metallurgical recoveries for

Oxide 54%; Sulphide Leach 41%; Sulphide

42% for material processed by leaching or

85% for material processed via the

concentrator.

–Commodity prices, operating and

capital costs.

For more information regarding the material

assumptions for the Mineral Reserve

estimates for Escondida, see Section 12 of

Escondida Technical Report Summary filed

herewith as exhibit 99.2 to this Form 20-F.

Exploration

A total of 2,706 km of exploration drilling has

been completed (up until December 2022),

distributed across 5,859 drill holes for

Escondida and distributed across 2,861 drill

holes for Escondida Norte.

The main objective of the exploration

programmes implemented at Escondida

has been the exploration of new deposits,

as well as to improve mineral resources

classification to support the annual planning

cycle. The results of these programmes serve

as the basis to support planning and growth

strategies as well as investment programmes

for the modernisation of the mining unit.

Additional information can be found in Section

7 of the Escondida Technical Report Summary

filed as exhibit 96.2 to the 2022 Form 20-F.

US disclosure continued

372 Annual Report on Form 20-F 2023 | riotinto.com

Oyu Tolgoi

Property Overview

The Oyu Tolgoi property, which contains the Oyu

Tolgoi project is located in the South Gobi region

of Mongolia, approximately 645 km by road south

of the capital, Ulaanbaatar. Oyu Tolgoi is being

developed by Oyu Tolgoi LLC and consists of a

series of deposits containing copper, gold, and

silver. Oyu Tolgoi consists of an open pit copper-

gold mine and concentrator facilities and an

underground block cave mine and related

infrastructure.

The Oyu Tolgoi copper-gold porphyry deposits

are distributed along a 12 km north-northeast

striking corridor. From north to south, the

deposits comprise Hugo North, Hugo South,

Oyut, and Heruga. The Oyut deposit is currently

mined as an open pit using a conventional drill,

blast, load, and haul method. The Hugo North

deposit is currently being developed as an

underground mine.

Rio Tinto holds a 66% interest in Oyu Tolgoi

LLC following the purchase of Turquoise Hill

Resources Ltd (TRQ) in 2022. The remaining

34% interest is held by the Government of

Mongolia through Erdenes Oyu Tolgoi LLC.

Oyu Tolgoi is centred at approximately latitude

43°00’45”N, longitude 106°51’15”E.

For SEC reporting purposes Oyu Tolgoi is

considered a production stage property. In

addition to mining activities, Oyu Tolgoi

conducts both exploration and development

activities across the property.

The location of the operations is shown in the

location map and is centred around  Latitude

43° 00' N, Longitude 106° 52'' E.

History

The existence of copper in the Oyu Tolgoi area

has been recognized since the Bronze Age,

but contemporary exploration for Mineral

Resources did not begin until the 1980s,

when a joint Mongolian and Russian

geochemical survey team identified a

molybdenum anomaly. In September 1996,

geologists from the Magma Copper Company

identified a porphyry copper leached cap over

what is now known as the Central zone of the

Oyut deposit. The Magma Copper Company

subsequently secured exploration tenements in

the area. Magma Copper Company was

subsequently acquired by BHP, which

became BHP.

In 1999, TRQ (known at the time as Ivanhoe

Mines Ltd.) visited Oyu Tolgoi and agreed to

acquire 100% interest in  Oyu Tolgoi.

In 2009, the Investment Agreement between

Ivanhoe Mines (now TRQ), Rio Tinto and the

Government of Mongolia was signed and Oyu

Tolgoi LLC was formed.

In 2010 open pit mining commenced with first

ore delivered in 2012 and first concentrate

sales in 2013. In 2012, Rio Tinto became the

majority shareholder of Ivanhoe.

In 2022 the first drawbell of the Hugo North

underground mine was fired. At the end of

2023, a total of 67 drawbells had been fired.

Rio Tinto has managed the project since 2011

and became majority shareholder of Ivanhoe

Mines in 2012. Rio Tinto now has a 66% direct

interest in Oyu Tolgoi following the successful

completion of the acquisition of TRQ. This is

allowing Rio Tinto to focus fully on strengthening

its relationship with the Government of Mongolia

and moving Oyu Tolgoi forward with a simpler

and more efficient ownership and governance

structure.

For further details regarding the history and

previous operators for the Oyu Tolgoi Property,

see Mines and Production Facilities– Oyu

Tolgoi on page 329.

Infrastructure

Road access to Oyu Tolgoi from Ulaanbaatar is

currently by an unpaved road, via Mandalgovi.

Oyu Tolgoi LLC maintains a set of gravel roads

internal to the Oyu Tolgoi, locally a 35.1 km

gravel road to the Khanbogd Soum, and

regionally via the access road from Oyu Tolgoi to

the Mongolian-Chinese border crossing at

Gashuun Sukhait which is a sealed all-weather

105 km long road. The Chinese Government has

upgraded 226 km of road from Ganqimaodao to

Wuyuan, providing a direct road link between the

Mongolian border crossing at Gashuun Sukhait,

80 km south of Oyu Tolgoi, and the Trans-China

railway system.

A permanent domestic airport has been

constructed at Oyu Tolgoi, 13 km north of the

camp area, to support the transportation of

people and goods to the site from Ulaanbaatar. It

further serves as the regional airport for

Khanbogd soum. The airport is designed to

accommodate commercial aircraft up to the

Boeing 737-800 series. The flight time from

Ulaanbaatar is just over one hour.

A major groundwater resource was discovered at

Gunii Khooloi, the development of which

provides the raw water supply for the camp and

operations at Oyu Tolgoi.

Power for Oyu Tolgoi is currently supplied with

electricity from China’s Inner Mongolia

Autonomous Region (IMAR) in accordance

with the Electricity Purchase and Sales

Agreement for the Oyu Tolgoi Project between

Oyu Tolgoi LLC, the Inner Mongolia Power

International Cooperation (IMPIC) company,

and the National Power Transmission Grid of

Mongolia.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 373

Power is supplied via a 220kV double-circuit

transmission line from the IMAR West grid.

Either circuit can supply approximately 350

MW, thus Oyu Tolgoi’s load can be met

entirely from one circuit while the other is kept

for redundancy.

Oyu Tolgoi operates and maintains assets

within remote Fly-In-Fly-Out (FIFO) Village at

Oyu Tolgoi. There are ~18,000 rooms along

with assorted central facilities such as dining

rooms, taverns, and recreational facilities.

Critical infrastructure that supports the FIFO

Villages includes potable and waste water

plants, potable water networks, and back-up

power generation.

The Oyut open pit mine supplies ore to the

concentrator via a primary crusher and overland

conveyor. The Hugo North underground mine is

currently being constructed and will consist of

multiple block caves supported by multiple shafts

and a conveyor to surface material handling

system.

Titles, leases and permits

The following key agreements relating to the

development and operation of Oyu Tolgoi have

been entered into by Rio Tinto, the

Government of Mongolia, and other entities

and have an impact on Rio Tinto’s interest in,

and obligations relating to Oyu Tolgoi:

–Investment Agreement dated 6 October 2009,

between the Government of Mongolia,

Ivanhoe Mines (renamed Turquoise Hill

Resources (TRQ)), and Rio Tinto in respect of

Oyu Tolgoi (Investment Agreement).

–In 2004, Entrée Resources LLC entered into

an equity participation and earn-in

agreement (EPEA) with Ivanhoe Mines

(now TRQ). Subsequently, TRQ transferred

its interest under the EPEA in the Shivee

Tolgoi and Javkhlant mining licences to Oyu

Tolgoi LLC in 2005. The resulting economic

interest in the minerals extracted from such

licenses is currently held as follows:

–70% Oyu Tolgoi LLC / 30% Entrée

Resources LLC for minerals extracted

from up to 560 m below the surface; and

–80% Oyu Tolgoi LLC / 20% Entrée

Resources LLC for minerals extracted

more than 560 m below the surface

–Amended and Restated Shareholders

Agreement (ARSHA) dated 8 June 2011

among Oyu Tolgoi LLC, THR Oyu Tolgoi

Ltd. (formerly Ivanhoe Oyu Tolgoi (BVI)

Ltd.), Oyu Tolgoi Netherlands B.V. and

Erdenes MGL LLC. Erdenes MGL LLC

since transferred its shares in Oyu Tolgoi

LLC and its rights and obligations under the

ARSHA to its subsidiary, Erdenes Oyu

Tolgoi LLC.

–Power Source Framework Agreement

(PSFA) dated 31 December 2018, between

the Government of Mongolia and Oyu Tolgoi

LLC, including the amendment to the PSFA

dated 26 June 2020

These agreements establish obligations and

commitments of the involved parties, including

the Government of Mongolia,

providing clarity and certainty in respect of the

development and operation of Oyu Tolgoi.

In December 2019, a Resolution of the

Parliament of Mongolia was published that

included resolutions to take comprehensive

measures to improve the implementation of

the Investment Agreement and the ARSHA

and to explore and resolve options to have a

product sharing arrangement or swap

Mongolia’s equity holding of 34% in Oyu Tolgoi

LLC for a special royalty.

Activities related to Oyu Tolgoi must be carried

out in accordance with these agreements and

the laws of Mongolia. As of the date of this

Form 20-F filing, material permits and

authorizations necessary to develop and

operate Oyu Tolgoi have been obtained.

Rights to mining are held under five Mine

Licences. Three are 100% owned by Oyu

Tolgoi LLC and two are subject to the equity

participation and earn-in agreement between

Entrée LLC and Oyu Tolgoi, which established

a joint venture arrangement between Oyu

Tolgoi LLC and Entrée LLC, which provides for

Oyu Tolgoi LLC to hold legal title in the

licences, subject to the terms of the

agreement, and to Oyu Tolgoi LLC meeting

prescribed earn-in expenditures. Although a

formal joint venture agreement has not been

signed, the earn-in requirements have been

met. Both the Shivee Tolgoi and Javkhlant

licences are operated by Oyu Tolgoi LLC.

US disclosure continued

374 Annual Report on Form 20-F 2023 | riotinto.com

Tenure Number	Tenure Name	Tenure Type	Holder Group	Oyu Tolgoi’s Interest	Tenure Status	Expiry Date	Current Area (ha)
MV-006708	Manakht	Mining Licence	Oyu Tolgoi LLC	100%	Live	23 Dec 2033	4,533
MV-006709	Oyu Tolgoi	Mining Licence	Oyu Tolgoi LLC	100%	Live	23 Dec 2033	8,490
MV-006710	Khukh Khad	Mining Licence	Oyu Tolgoi LLC	100%	Live	23 Dec 2033	1,763
MV-015225	Javkhlant	Mining Licence	Entrée LLC	70% from the surface to 560 m below the surface; and 80% from below 560 m	Live	27 Oct 2039	20,327
MV-015226	Shivee Tolgoi	Mining Licence	Entrée LLC	70% from the surface to 560 m below the surface; and 80% from below 560 m	Live	27 Oct 2039	42,593

Encumbrances

There are no known significant encumbrances

to the Property at Oyu Tolgoi that would

impact the current Mineral Resources or

Mineral Reserves.

For further details regarding the titles, leases

and rights for Oyu Tolgoi, see Mines and

Production Facilities-Oyu Tolgoi on pages 329.

Personnel

Personnel are engaged on either a residential

or Fly-In-Fly-Out (FIFO) basis, sourced from

capital and regional centres in Mongolia.

Age, modernisation and condition of

the equipment and facilities

The infrastructure, equipment and facilities at

Oyu Tolgoi are relatively new or under

construction. All infrastructure, equipment and

facilities within Oyu Tolgoi are subject to an

ongoing regime of sustaining capital

investment and maintenance, underpinned by

asset integrity audits, engineering inspections,

engineering life cycles for key equipment and

safety inspections and audits.

Book value

For the book value for Oyu Tolgoi, see Rio

Tinto Financial Information by Business Unit

on pages 286-288.

Geology and mineralisation

The mineral deposits at Oyu Tolgoi lie in a

structural corridor where mineralisation has

been discovered over a 26 km strike length.

Four deposits hosting Mineral Resources have

been identified: Oyut, Hugo Dummett North,

Hugo Dummett South, and Heruga. The Oyu

Tolgoi copper-gold porphyry deposits are

distributed along a 12 km north-northeast

striking corridor. From north to south, the

deposits comprise Hugo North, Hugo South,

Oyut, and Heruga.

These deposits lie within the Gurvansayhan

island-arc terrane, a fault bounded segment of

the broader Silurian to Carboniferous Kazakh-

Mongol arc, located towards the southern

margin of the Central Asian Orogenic Belt.

Mineralisation is associated with multiple,

overlapping, intrusions of late Devonian

quartz-monzodiorite intruding Devonian (or

older) juvenile, probably intra-oceanic arc-

related, basaltic lavas and lesser volcaniclastic

rocks, unconformably overlain by late

Devonian basaltic to dacitic pyroclastic and

volcano sedimentary rocks. These quartz-

monzodiorite intrusions range from early-

mineral porphyritic dykes, to larger, linear,

syn-, late- and post-mineral dykes and stocks.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 375

Mineral Resources

The table on pages 316-317 sets out the

amount and grade, of Oyu Tolgoi’s Measured,

Indicated and Inferred Mineral Resources for

the year ended 31 December 2023. The

negligible <1% reduction in Mineral Resources

compared to the  year ended 31 December

2022  is primarily due to the 2023 mined

(production) Inferred ore from the Oyut open

pit Mineral Resources.

The Mineral Resource estimate is based on

the following assumptions:

–Exclusive of Mineral Reserves – Mineral

Resources are reported exclusive of Mineral

Reserves.

–Moisture – All Mineral Resource tonnages

are estimated and reported on a dry basis.

–Mineral Resources are estimated using

ordinary kriging.

–The sample data preparation including data

capping is appropriate for use in estimation

of a Mineral Resource.

–The pit optimisation used to determine the

resources that have reasonable prospects

of economic extraction.

–It is assumed that standard open pit load

and haul mining operations and

underground block cave mining operations

will be applicable for the mining of Mineral

Resources. Processing will be through

crushing, grinding and a froth flotation

concentrator process.

–Copper, gold and silver are payable

elements and are included in the calculation

of a copper equivalent cut-off. At Heruga,

molybdenum is also included as a payable

element.

For more information regarding the material

assumptions for the Mineral Resource

estimates, see Section 11 of the Oyu Tolgoi

Technical Report Summary filed as exhibit

96.3 to this Form 20-F.

Mineral Reserves

The table on pages 304-305 sets out the

amount, grade, price and metallurgical

recovery of Oyu Tolgoi ‘s Proven and Probable

Mineral Reserves for the year ended 31

December 2023.  The 3% reduction in Mineral

Reserves compared to the year ended 31

December 2022 is primarily due to the 2023

mined (production) Proven and Probable ore

from the Oyut open pit Reserve.

The Mineral Reserves estimates for Oyu

Tolgoi are based on a Life of Mine plan that

has been developed according to SK-1300 and

using industry accepted strategic planning

approaches which defined the life of the mines

at Oyu Tolgoi. Inferred Mineral Resources

have been treated as waste. The final

reserves plan is the outcome of the application

of appropriate modifying factors in order to

establish an economically viable and

operational mine plan. At Oyu Tolgoi, a

variable cut-off grade strategy is applied to

develop the mine plan. The Mineral Reserves

estimate includes both the Oyut and Hugo

North deposits and more detail is provided

in Table 1.2 of exhibit 96.3 of the 2022

Form 20-F.

Material assumptions in the estimation of

Mineral Reserves are:

–The resource model reflects the continuity

and complexity of the deposit with the

confidence stated in the classification.

–Mineral Reserves are reported as dry mill

feed tonnes.

–A variable net smelter return cut-off strategy

that maximises throughput for the

concentrator.

–Commodity prices, operating and capital

costs.

–Geology models contain tonnage estimates

on a dry in situ basis. The estimated water

content (moisture) for each block model

block is added.

–Metallurgical and processing recovery

estimates are applied to crusher feed

tonnages based on ore types.

Uncertainties that affect the reliability or

confidence in the Mineral Reserves estimate

include but are not limited to:

–Future macro-economic environment,

including metal prices and foreign exchange

rate.

–Changes to operating cost assumptions,

including labour costs.

–Ability to continue sourcing water.

–Changes to mining, hydrological,

geotechnical parameters, and assumptions.

–Ability to maintain environmental and social

licence to operate.

–Metallurgical recovery assumptions.

For more information regarding the material

assumptions for the Mineral Reserve

estimates at Oyu Tolgoi, see Section 12 of

Oyu Tolgoi Technical Report Summary filed

herewith as exhibit 96.3 to this Form 20-F.

Exploration

Exploration on the mine leases is undertaken

by Oyu Tolgoi LLC’s site technical services

team. The current exploration strategy is

focused on developing a project pipeline

prioritised in areas that can impact the current

development of the Oyu Tolgoi deposits,

seeking low-cost development options and

continuing the assessment of legacy datasets

to enable future discovery. Exploration targets,

based on identified medium or high priority,

have had exploration work completed in 2023,

and will continue to be investigated going

forward based on priority and potential. 

Development of the known Mineral Resources

is a key objective of stakeholders and over the

life of Oyu Tolgoi. Oyu Tolgoi LLC will continue

to progress its orebody knowledge of these

known resources to improve decision making

on their potential development.

Additional information can be found in Section

7 of the Oyu Tolgoi Technical Report Summary

filed as exhibit 96.3 to the 2022 Form 20-F.

US disclosure continued

376 Annual Report on Form 20-F 2023 | riotinto.com

Simandou

Property Overview

The Simfer Iron Ore Project (Simandou) is an

iron ore mining project located in the Republic

of Guinea, approximately 550 km southeast of

Conakry (Guinea’s capital), towards the

southern end of the 110 km long Simandou

Range. The Simandou orebodies are located

within a 369 km² area (Blocks 3 and 4) of the

Simandou South Mining Concession (the

Concession) which is held by Simfer S.A.

(Simfer). Simandou is located at latitude

08°31′N, longitude 08°54′W.

Iron ore extracted from Blocks 3 and 4 (and

the neighbouring Winning Consortium

Simandou (WCS) mining concession Blocks 1

and 2) will be exported via rail and port

infrastructure to be co-developed as a Joint

Venture (JV) between the Guinean State,

Simfer Jersey, and WCS, with the ultimate

owner and operator of the infrastructure being

the Compagnie du Transguinéen (CTG).

Simfer is owned by Simfer Jersey (85%), and

the Guinean State (15%). Simfer Jersey is an

incorporated JV comprising Rio Tinto Simfer

UK Limited (53%), and Chalco Iron Ore

Holdings Limited (CIOH) (47%).

For SEC reporting purposes, Simandou is

considered a development stage project

property. In addition to project construction,

Simfer conducts both exploration and

development activities across the property.

History

The existence of iron ore in the Simandou

Range has been recognized since the 1950’s,

with the commencement of drilling activities by

Rio Tinto in 1997.

From 1999 through to 2011, some 81 km of

drilling was undertaken at the Pic de Fon

deposit, adjacent to the Ouéléba deposit, and

a further 98 km of drilling was undertaken

within the Ouéléba deposit during the period

2005 to 2013.

Total drilling of more than 250 km has been

used as the basis for interpretation of the

Mineral Resources, more than 130 km/680

holes at Ouéléba, of which approximately 30%

were diamond core and the remainder

Reverse Circulation (RC) and more than 110

km/570 holes at Pic de Fon with approximately

30% being diamond core and the remainder

RC.

Simfer mining concession over Blocks 3 and 4

was granted on 22 April 2011 by Presidential

Decree.

In 2022, co-development of the rail and port

infrastructure between the Guinean State,

WCS Railway, and Rio Tinto through its Simfer

holdings was agreed (Co-Development

Agreement).

For further details regarding the history and

previous operators for the Simandou Property,

see Mines and Production Facilities–

Simandou on page 338.

Infrastructure

A new trans-Guinean railway consisting of a

multi-use, multi-user main line approximately

536 km long is being constructed in

conjunction with WCS.

Two separate spur lines from the main rail line

are being constructed to each of the two

separate mining areas, the WCS Spur Line for

Blocks 1 and 2, and the Simfer Spur Line for

Blocks 3 and 4.

There is an existing airport at Beyla, which is

located some 35 km from the Simandou camp.

A purpose built crushing and material handling

facility will be constructed at the project, which

is capable of handling the Direct Shipping Ore

(DSO) product from the mine.

The product from the Ouéléba crushing plant

will be stacked by dedicated stackers onto

separate rows of stockpiles in a common

stockyard.

Power for Simandou will be supplied by a

combination of diesel generated electrical

power, and solar/battery power.  Downhill

conveying from the mine to the stockyard will

supply regenerative power when ore is being

transported from the mine.

The power plant is a hybrid renewable plant

that supplies a maximum demand of

approximately 18.5 MW using diesel-fired

generators initially, plus capacity for future

expansion using a combination of diesel-fired

generators and future renewable sources.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 377

Current site access roads are being upgraded

to handle mine traffic and contractor access

for construction of the processing plant, and

associated infrastructure.

Camp facilities are in place, with a current

workforce involved in further geological

sampling and early construction works.

Planned expansion of camp facilities in

addition to an expansion and upgrade of an

existing airstrip are planned for the project

construction phase.

Port access will be through the port located in

the Morebaya Estuary south of Conakry in the

Forécariah prefecture, which will allow for the

global distribution of iron product. The rail and

port infrastructure to enable export of ore from

the Property is being co-developed as a JV

between the Guinean State, Simfer Jersey,

and WCS, with the ultimate owner and

operator of the co-developed infrastructure

being the CTG.

General infrastructure will include mine access

control and guard house, mine administration

buildings, workshops, mine operations

buildings, prayer building, site laboratory, and

a central messing and ablution facility.

Critical infrastructure that supports the camp

includes potable and wastewater plants,

potable water networks, and back-up power

generation.

The Ouéléba mine will supply ore to the

stacker/reclaimer via a dual primary crusher,

and downhill conveyor.

Titles, leases and permits

The following key agreements relating to the

development and operation of Simandou have

been entered into by Rio Tinto, the Guinean

State, and other entities, and have an impact

on Rio Tinto’s interest in, and obligations

relating to, Simandou:

–Simfer mining concession over Blocks 3

and 4 was granted on 22 April 2011 by

Presidential Decree No. D/2011/134/PRG/

SGG, which was published in the April

special issue of the Official Journal of the

Republic of Guinea (Concession Decree).

–In 2012, the Social Environment Impact

Assessment was completed, and the

Government of Guinea declared Simandou

a “Project of National Interest”. The

investment framework for the development

of Simandou, including a mining convention

(Amended and Consolidated Basic

Convention) and a Build Operate Transfer

convention (BOT Convention), was ratified

by the Guinean State on 26 May 2014.

–The Concession duration is 25 years,

renewed automatically for a further period of

25 years followed by further 10-year periods

in accordance with the mining convention

and the applicable Guinean mining

legislation, provided Simfer has complied

with its obligations under the Amended and

Consolidated Basic Convention.

–The co-developed rail and port

infrastructure includes a purpose-built port

facility to be constructed at Morebaya

estuary, which will facilitate the export of the

iron ore from the Simfer Mine, and WCS

Mine. The port will have a capacity of 120

million tonnes per annum (Mtpa) and will be

shared with WCS. The port will be accessed

by a purpose built 536 km main rail line with

spurs to connect the Simfer Mine (68 km),

and WCS Mine (16 km) to the port at

Morebaya. The rail will have initial capacity

of up to 120 Mtpa.

These agreements establish obligations and

commitments of the involved parties, including

the Guinean State, providing clarity and

certainty in respect of the development and

operation of Simandou.

Access to the mine site and to the ore is

guaranteed under the applicable mining

legislation and the Amended and Consolidated

Basic Convention. Mining, exploration, and

exploitation works carried out or to be carried

out on site are authorized in accordance with

the applicable legislation and/or the Amended

and Consolidated Basic Convention. Other

required permits and authorizations (e.g.,

environmental, building, etc.) are applied for

by Simfer in compliance with the application

legislation.

Activities related to Simandou must be carried

out in accordance with these agreements and

the laws of Guinea. As of the date of this Form

20-F filing, material permits and authorizations

necessary to develop and operate Simandou

have been obtained.

Tenure Number	Tenure Name	Tenure Type	Holder Group	Rio Tinto’s Interest	Tenure Status	Expiry Date	Current Area (ha)
A2011/011/ DIGM CPDM	Simandou Blocks 3 and 4	Mining concession	Simfer Jersey Limited (shareholders RT Simfer UK Ltd and CIOH) of which we have a 53% interest in 85% of the project => 45.05%	45.05%	Live	07 Jul 1964	36,900

US disclosure continued

378 Annual Report on Form 20-F 2023 | riotinto.com

Encumbrances

There are no known significant encumbrances

to the Property at Simandou that would impact

the current Mineral Resources or Mineral

Reserves. It should however be noted that:

–In addition to its existing 15% share in the

share capital of Simfer S.A., the State has

been granted various options to purchase

over time additional shares in the share

capital of Simfer S.A up to 20% (of which

10% based on Mining Historical Costs and

10% at market value). None of these

options have been exercised on the date of

this submission; and

–The State can terminate the Amended and

Consolidated Basic Convention and/or

withdraw the Concession in various

circumstances such as (i) a material breach

by Simfer S.A. of its obligations under the

Amended and Consolidated Basic

Convention, including not reaching first

commercial production by a certain date; (ii)

the physical completion of the Mining

Infrastructure does not occur by 31

December 2026; the Main Rail Line, Simfer

Spur Line, WCS Spur Line and WCS Barge

Port are not completed by 31 December

2026, and the State withdraws the WCS

Concession, provided that these deadlines

can be postponed based on legitimate

grounds such as force majeure events and/

or following the application of extension

mechanisms provided for in, and in

accordance with, the Co-Development

Agreement and/or the Mine Bipartite

Agreement. No such termination or

withdrawal has been notified to Simfer S.A.

on the date of this TRS.

For further details regarding the titles, leases

and rights for Simandou, see Section 3 of the

Simandou Technical Report Summary filed as

exhibit 96.4 to this Form 20-F.

Personnel

Personnel will be engaged on either a

residential, or Fly-In-Fly-Out (FIFO) basis.

During construction, personnel will be sourced

from capital and regional centers in Guinea, as

well as overseas where local skills are

unavailable.

Age, modernisation and condition of

the equipment and facilities

The facilities at Simandou are relatively new,

or under construction. All infrastructure,

equipment, and facilities are subject to an

ongoing regime of sustaining capital

investment and maintenance, underpinned by

asset integrity audits, engineering inspections,

engineering life cycles for key equipment, and

safety inspections and audits.

Book value

For the book value for Simandou, see Rio

Tinto Financial Information by Business Unit

on pages 286-288.

Geology and mineralisation

The Ouéléba and Pic de Fon deposits are

located in the Simandou Range, on a

prominent ridge. The Simandou Range is the

result of multi-phase ductile deformation

represented by tight synformal fold keels and

sheared antiformal structures. The ridge

consists of a formation of itabirites

(metamorphosed Banded Iron Formation

(BIF)) and phyllites, overlying basement

gneiss and amphibolite. The itabirites and

phyllites have been deeply weathered and

identifying stratigraphy is difficult, with the only

discernible contact being that between the

itabirites, and phyllites.

The Ouéléba deposit is located towards the

southern end of the Simandou Range,

approximately 5 km north of the Pic de Fon

deposit. It is an approximately 7 km long and

700 m wide zone of mineralisation.

The Pic de Fon deposit is an approximately

7.5 km long, and 500 m wide (extending briefly

to just over 1,000 m wide at the northern end

of the deposit) zone of mineralization. The

deposit forms part of a north-northwest

trending ridge, and both deposits originated

from an itabirite precursor.

The ridge line likely forms part of an ancient

erosion surface, probably mid-tertiary in age,

which has been subjected to deep prolonged

tropical weathering.

Ouéléba hematite goethite mineralisation

consists mainly of friable hematite-goethite

material extending locally also to depths

greater than 400 m below surface. Hematite

mineralization at Pic de Fon consists mainly of

friable hematite material extending locally to

depths greater than 400 m below surface.

Mineral Resources

The table on pages 314-315 sets out the

amount and grade, of Simandou’s Measured,

Indicated and Inferred Mineral Resources for

the year ended 31 December 2023. The 72%

reduction in Mineral Resources compared to

the year ended 31 December 2022 is primarily

due to conversion to Mineral Reserves

following completion of the feasibility study for

Ouéléba.

The Mineral Resource estimate is based on

the following assumptions:

–Exclusive of Mineral Reserves – Mineral

Resources are reported exclusive of Mineral

Reserves.

–Moisture – All Mineral Resource tonnages

are estimated and reported on a dry basis.

–Mineral Resources are estimated using

ordinary kriging.

–The sample data preparation including data

capping is appropriate for use in estimation

of a Mineral Resource.

–The pit optimisation used to determine the

resources that have reasonable prospects

of economic extraction.

–It is assumed that standard open pit load

and haul mining operations will be

applicable for the mining of Mineral

Resources. Processing will be through

crushing and blending.

–Studies are currently in progress to

determine the viability of producing a DSO

dual product including Blast Furnace (BF),

and Direct Reduction (DR) quality products

from the operation over the life of mine.

For more information regarding the material

assumptions for the Mineral Resource

estimates, see Section 11 of the Simandou

Technical Report Summary filed as exhibit

96.4 to this Form 20-F.

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 379

Mineral Reserves

The table on pages 302-303 sets out the

amount, grade, price and metallurgical

recovery of Simandou ‘s Proven and Probable

Mineral Reserves for the year ended 31

December 2023. The Mineral Reserves are

reported for the first time.

The Mineral Reserves estimates for Simandou

are based on a Life of Mine plan that has been

developed in accordance with SK-1300 and

using industry accepted strategic planning

approaches which defined the life of the mine

at Ouéléba. Inferred Mineral Resources have

been treated as waste. The final reserves plan

is the outcome of the application of

appropriate modifying factors in order to

establish an economically viable and

operational mine plan. At Ouéléba a variable

cut-off grade strategy is applied to develop the

mine plan to separate the BF and DR products

within the iron ore mineralisation. The Mineral

Reserves estimate only includes the Ouéléba

deposit. The Pic de Fon deposit will be the

subject of a feasibility study level investigation

in the future and more detail is provided in

Table 1.2 of exhibit 96.4 of this Form 20-F.

Material assumptions in the estimation of

Mineral Reserves are:

–The resource model reflects the continuity

and complexity of the deposit with the

confidence stated in the classification.

–Mineral Reserves are reported as dry mill

feed tonnes.

–Cut-off  grades for Direct Shipping Ore

(DSO) iron ore product. have been applied

within the life of mine final pit design based

upon Fe >=58%, Al2O3 + SiO2 <= 8%, P <=

0.25%.

–Commodity prices, operating and capital

costs.

–Geology models contain tonnage estimates

on a dry in situ basis. The estimated water

content (moisture) for each block model

block is added.

–Processing recovery estimates are applied

to ex-pit handling as 0.5% losses.

Uncertainties that affect the reliability or

confidence in the Mineral Reserves estimate

include but are not limited to:

–Future macro-economic environment,

including metal prices and foreign exchange

rate.

–Changes to operating cost assumptions,

including labour costs.

–Ability to continue sourcing water.

–Changes to mining, hydrological,

geotechnical parameters, and assumptions.

–Ability to maintain environmental and social

licence to operate.

For more information regarding the material

assumptions for the Mineral Reserve

estimates at Simandou, see Section 12 of

Simandou Technical Report Summary filed

herewith as exhibit 96.4 to this Form 20-F.

Exploration

Exploration at Simandou is undertaken by

Simfer’s site resource evaluation team. The

current exploration strategy is focused on

developing a project pipeline prioritized in

areas that can extend current development.

Further drilling and updates to the Pic de Fon

Mineral Resource model will permit a

feasibility level study to assess the potential

conversion of the Mineral Resources in a

mineable extension of the current project.

Development of the known Mineral Resources

is a key objective of stakeholders and over the

life of mine, Simfer will continue to progress its

understanding of these resources, and

ultimately make decisions on their

development.

Additional information can be found in Section

7 of the Simandou Technical Report Summary

filed as exhibit 96.4 to this Form 20-F.

Internal controls disclosure

pursuant to Item 1305 of

SK-1300 under Securities Act

of 1933

For a description of the internal controls that

Rio Tinto uses in its exploration and Mineral

Resource and Mineral Reserve estimation

efforts, quality control and quality assurance

programmes, verification of analytical

procedures and a discussion of the risk

management related to these estimates, see

Mineral Resources and Mineral Reserves

Governance and Internal Controls on

page 299.

US disclosure continued

380 Annual Report on Form 20-F 2023 | riotinto.com

Financial calendar

2024
15	January	Fourth quarter 2023 operations review
29	January	Closing date for receipt of nominations for candidates other than those recommended by the board to be elected as directors at the 2024 annual general meetings
21	February	Announcement of results for 2023
7	March	Rio Tinto plc and Rio Tinto Limited ordinary shares and Rio Tinto plc ADRs quoted “ex-dividend” for the 2023 final dividend
8	March	Record date for the 2023 final dividend for Rio Tinto plc and Rio Tinto Limited ordinary shares and Rio Tinto plc ADRs
26	March	Final date for elections under the Rio Tinto plc and Rio Tinto Limited dividend reinvestment plans and under facilities for dividends to be paid in alternative currency for the 2023 final dividend
4	April	Annual general meeting for Rio Tinto plc, UK
11	April	Dividend currency conversion date
16	April	First quarter 2024 operations review
18	April	Payment date for the 2023 final dividend to holders of ordinary shares and ADRs
2	May	Annual general meeting for Rio Tinto Limited, Australia
15	July	Second quarter operations review 2024
31	July	Announcement of half-year results for 2024
15	August	Rio Tinto plc and Rio Tinto Limited ordinary shares and Rio Tinto plc ADRs quoted “ex-dividend” for the 2023 interim dividend1
16	August	Record date for the 2024 interim dividend for Rio Tinto plc and Rio Tinto Limited ordinary shares and Rio Tinto plc ADRs
5	September	Final date for elections under the Rio Tinto plc and Rio Tinto Limited dividend reinvestment plans and under facilities for dividends to be paid in alternative currency for the 2024 interim dividend
19	September	Dividend currency conversion date
26	September	Payment date for the 2024 interim dividend to holders of ordinary shares and ADRs
15	October	Third quarter 2024 operations review

Additional information

Annual Report on Form 20-F 2023 | riotinto.com 381

Registered offices

Rio Tinto plc

6 St James’s Square

London

SW1Y 4AD

UK

Registered in England No. 719885

Telephone: +44 (0)20 7781 2000

Website: riotinto.com

Rio Tinto Limited

Level 43, 120 Collins Street

Melbourne 3000

Australia

ABN 96 004 458 404

Telephone: +61 3 9283 3333

Website: riotinto.com

Rio Tinto’s agent in the US is Cheree Finan,

who may be contacted at

Rio Tinto Services Inc.

80 State Street

Albany

NY 12207-2543

US

Shareholders

Please refer queries about shareholdings to

the investor centre of the respective registrar.

Rio Tinto plc

Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol

BS99 6ZZ

UK

Telephone:

+44 (0)800 435 021 (in the UK)

+44 (0)370 703 6364 (overseas)

Website: computershare.com

Holders of Rio Tinto American Depositary

Receipts (ADRs)

Please contact the ADR administrator if you

have any queries about your ADRs.

ADR administrator

J.P. Morgan Chase Bank N.A.

Shareowner Services

PO Box 64504

St. Paul

MN 55164-0504

US residents only, toll free general:

+1 (800) 990 1135

Telephone from outside the US:

+1 (651) 453 2128

US residents only, toll free Global invest direct:

+1 (800) 428 4237

Website: adr.com

Email: shareowneronline.com/informational/

contact-us/

Rio Tinto Limited

Computershare Investor Services Pty Limited

GPO Box 2975

Melbourne

Victoria 3001

Australia

Telephone: +61 (0) 3 9415 4030

Australian residents only, toll free:

1800 813 292

New Zealand residents only, toll free:

0800 450 740

Website: computershare.com

Former Alcan Inc. shareholders

Computershare Investor Services Inc.

8th Floor

100 University Avenue

Toronto, ON

Canada

M5J 2Y1

Telephone: +1 (514) 982-7555

North American residents only,

toll free: +1 (800) 564-6253

Website: computershare.com

Investor Centre

Investor Centre is Computershare’s free,

secure, self-service website, where

shareholders can manage their holdings

online. The website enables shareholders to:

–View share balances

–Change address details

–View payment and tax information

–Update payment instructions

In addition, shareholders who register their

email address can be notified electronically of

events such as annual general meetings, and

can receive shareholder communications such

as the Annual Report or notice of meeting

electronically.

Rio Tinto plc shareholders

Website: investorcentre.co.uk

Rio Tinto Limited shareholders

Website: www-au.computershare.com/

Investor

Contact details

382 Annual Report on Form 20-F 2023 | riotinto.com

This report includes “forward-looking

statements” within the meaning of the Private

Securities Litigation Reform Act of 1995.

All statements other than statements of

historical facts included in this report,

including, without limitation, those regarding

Rio Tinto’s financial position, business

strategy, plans and objectives of management

for future operations (including development

plans and objectives relating to Rio Tinto’s

products, production forecasts, and reserve

and resource positions), are forward-looking

statements. The words “intend”, “aim”,

“project”, “anticipate”, “estimate”, “plan”,

“believes”, “expects”, “may”, “should”, “will”,

“target”, “set to” or similar expressions,

commonly identify such forward-looking

statements.

Such forward-looking statements involve

known and unknown risks, uncertainties and

other factors which may cause the actual

results, performance or achievements of

Rio Tinto, or industry results, to be materially

different from any future results, performance

or achievements expressed or implied by such

forward-looking statements. Such forward-

looking statements are based on numerous

assumptions regarding Rio Tinto’s present and

future business strategies and the environment

in which Rio Tinto will operate in the future.

Among the important factors that could cause

Rio Tinto’s actual results, performance or

achievements to differ materially from those in

the forward-looking statements include, but are

not limited to: an inability to live up to

Rio Tinto’s values and any resultant damage to

its reputation; the impacts of geopolitics on

trade and investment; the impacts of climate

change and the transition to a low-carbon

future; an inability to successfully execute and/

or realise value from acquisitions and

divestments; the level of new ore resources,

including the results of exploration programs

and/or acquisitions; disruption to strategic

partnerships that play a material role in

delivering growth, production, cash or market

positioning; damage to Rio Tinto’s relationships

with communities and governments; an

inability to attract and retain requisite skilled

people; declines in commodity prices and

adverse exchange rate movements; an inability

to raise sufficient funds for capital investment;

inadequate estimates of ore resources and

reserves; delays or overruns of large and

complex projects; changes in tax regulation;

changes in environmental, social and

governance reporting standards; safety

incidents or major hazard events; cyber

breaches; physical impacts from climate

change; the impacts of water scarcity; natural

disasters; an inability to successfully manage

the closure, reclamation and rehabilitation of

sites; the impacts of civil unrest; breaches of

Rio Tinto’s policies, standards and procedures,

laws or regulations; trade tensions between the

world’s major economies; increasing societal

and investor expectations, in particular with

regard to environmental, social and

governance considerations; the impacts of

technological advancements; and such other

risks identified in Rio Tinto’s most recent

Annual Report and accounts in Australia and

the United Kingdom and the most recent

annual report on Form 20-F filed with the SEC

or Form 6-Ks furnished to, or filed with, the

SEC. Forward-looking statements should,

therefore, be construed in light of such risk

factors and undue reliance should not be

placed on forward-looking statements.

These forward-looking statements speak only

as of the date of this report. Rio Tinto

expressly disclaims any obligation or

undertaking (except as required by applicable

law, the UK Listing Rules, the Disclosure

Guidance and Transparency Rules of the

Financial Conduct Authority and the Listing

Rules of the Australian Securities Exchange)

to release publicly any updates or revisions to

any forward-looking statement contained

herein to reflect any change in Rio Tinto’s

expectations with regard thereto or any

change in events, conditions or circumstances

on which any such statement is based.

Nothing in this report should be interpreted to

mean that future earnings per share of

Rio Tinto plc or Rio Tinto Limited will

necessarily match or exceed its historical

published earnings per share.

Additional information

Cautionary statement about forward-looking

statements

Annual Report on Form 20-F 2023 | riotinto.com 383

riotinto.com

This report is printed on paper certified in accordance with the FSC® (Forest Stewardship Council®) and is recyclable and acid-free. Pureprint Ltd is FSC certified and ISO 14001 certified showing that it is committed to all round excellence and improving environmental performance is an important part of this strategy. Pureprint Ltd aims to reduce at source the effect its operations have on the environment and is committed to continual improvement, prevention of pollution and compliance with any legislation or industry standards. Pureprint Ltd is a Carbon / Neutral® Printing Company. Report produced by Black Sun Global, part of the Positive Change Group.

ITEM 19. EXHIBITS

Exhibits marked “*” have been filed as exhibits to this Annual report on Form 20-F and other exhibits have been incorporated by reference as indicated.

INDEX

Exhibit Number	Description
1.1	Articles of Association of Rio Tinto plc (adopted by special resolution passed on 20 April 2009 and amended on 1 October 2009 and 8 April 2020) (incorporated by reference to Exhibit 1.1 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2020, File No. 1-10533)
1.2	Constitution of Rio Tinto Limited (CAN 004 458 404) (as adopted by special resolution passed on 24 May 2000 and amended by special resolution on 18 April 2002, 29 April 2005, 27 April 2007, 24 April 2008, 20 April 2009 and 7 May 2020) (incorporated by reference to Exhibit 1.2 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2020, File No. 1-10533)
2.1*	Description of securities (incorporated by reference to Exhibit 2.1 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2021, File No. 1-10533)
3.1**	DLC Merger Implementation Agreement, dated 3 November 1995 between CRA Limited and The RTZ Corporation PLC relating to the implementation of the DLC merger (incorporated by reference to Exhibit 2.1 of Rio Tinto plc's Annual report on Form 20-F for the financial year ended 31 December 1995, File No. 1‑10533)
3.2	DLC Merger Sharing Agreement, dated 21 December 1995 and amended on 14 April 2005, 29 April 2005 and 18 December 2009 between CRA Limited and The RTZ Corporation PLC relating to the ongoing relationship between CRA and RTZ following the DLC merger (incorporated by reference to Exhibit 3.2 of Rio Tinto plc Annual report on Form 20-F for the fiscal year ended 31 December 2009, File No. 1‑10533)
3.3	RTZ Shareholder Voting Agreement, dated 21 December 1995 and amended on 18 January 2010 between The RTZ Corporation PLC, RTZ Shareholder SVC Pty. Limited, CRA Limited, R.T.Z. Australian Holdings Limited and The Law Debenture Trust Corporation p.l.c (incorporated by reference to Exhibit 3.3 of Rio Tinto plc Annual report on Form 20-F for the fiscal year ended 31 December 2009, File No. 1‑10533)
3.4	CRA Shareholder Voting Agreement, dated 21 December 1995 and amended 18 January 2010 between CRA Limited, CRA Shareholder SVC Limited, The RTZ Corporation PLC and The Law Debenture Trust Corporation p.l.c., relating to the RTZ Special Voting Share (incorporated by reference to Exhibit 3.4 of Rio Tinto plc Annual report on Form 20-F for the fiscal year ended 31 December 2009, File No. 1‑10533)
4.1*	Rules of the Rio Tinto plc Equity Incentive Plan 2018, approved on 11 April 2018 and amended on 12 February 2019, 4 March 2021, 28 June 2021 and 19 October 2023
4.2*	Rules of the Rio Tinto Limited Equity Incentive Plan 2018, approved on 2 May 2018 and amended on 12 February 2019, 4 March 2021, 28 June 2021 and 19 October 2023
8.1*	List of subsidiary companies
12.1*	Certifications pursuant to Rule 13a‑14(a) of the Exchange Act
13.1*	Certifications furnished pursuant to Rule 13a‑14(b) of the Exchange Act (such certifications are not deemed filed for purpose of Section 18 of the Exchange Act and not incorporated by reference in any filing under the Securities Act)
15.1*	Consent of KPMG LLP and KPMG, independent registered public accounting firms
15.2*	Consents of Qualified Persons for Technical Report Summary Simandou
16.1*	Mine safety and health administration safety data
17.1*	Guarantors and Issuers of Guaranteed Securities
96.1	Technical Report Summary Pilbara Operations (incorporated by reference to Exhibit 96.1 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2021, File No. 1-10533)
96.2	Technical Report Summary Escondida (incorporated by reference to Exhibit 96.2 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2022, File 1-10533)
96.3	Technical Report Summary Oyu Tolgoi (incorporated by reference to Exhibit 96.3 of Rio Tinto plc Annual Report on Form 20-F for fiscal year ended 31 December 2022, file 1-10533)
96.4*	Technical Report Summary Simandou
96.5*	Incentive-Based Compensation Clawback Policy, approved on 19 October 2023
101*	Interactive data files

*    Filed herewith

**    Paper filing in 1995

Signature

The Registrants hereby certify that they meet all of the requirements for filing on Form 20-F and that they have duly caused and authorised the undersigned to sign this Annual Report on their behalf.

Rio Tinto plc	Rio Tinto Limited
(Registrant)	(Registrant)
/s/ Andy Hodges	/s/ Tim Paine
Name: Andy Hodges	Name: Tim Paine
Title: Company Secretary	Title: Company Secretary
Date: 23 February 2024	Date: 23 February 2024