Impairment

6 Months Ended

Jun. 30, 2026

5. Impairment


	2026				2025
Six months ended 30 June	Pre-tax amount US$m	Taxation US$m	Non- controlling interest US$m	Net amount US$m	Pre-tax amount US$m
Other operations – RTITQO	—	—	—	—	(122)
Aluminium – Porto Trombetas (MRN)	15	—	—	15	—
Net impairment reversals/(charges)	15	—	—	15	(122)

Allocated as:
Property, plant and equipment	—				(122)
Share of profit after tax of equity accounted units	15				—
Net impairment reversals/(charges)	15				(122)

Other operations - Rio Tinto Iron and Titanium Quebec Operations (RTITQO) and QIT

Madagascar Minerals (QMM)

In 2025, we progressed a business transformation at RTITQO in response to challenging market

conditions for our products at the Sorel site, including TiO2 and metallics. This transformation,

which includes the adjustment of the business footprint to projected demand, was expected to

take up to 24 months to complete its core components. At 30 June 2025, we identified these

conditions as an impairment trigger and performed an impairment test for the cash-generating unit

which comprises the mines and processing facilities at RTITQO (in Canada) and QMM (in

Madagascar).

We expected the transformation program to result in significant improvements in operating costs,

including opportunities to reduce carbon emissions and therefore carbon costs. However, for the

purpose of performing the impairment test, risk adjustments were applied to reduce the forecast

cash flows to reflect a market participant perspective that the value of the projected initiates may

not fully deliver the expected benefit.

Using a fair value less cost of disposal methodology and discounting real-terms post-tax cash

flows at an effective rate of 7.6% we determined the recoverable amount to be US$1,780 million.

This resulted in a pre-tax impairment charge during the six months ended 30 June 2025 of

US$122 million (post-tax US$86 million) and was allocated to property, plant and equipment in

Canada.

During 2026, market conditions have remained challenging and therefore we have tested the

assets again for impairment. The testing parameters were not materially different and no

impairment charge or impairment reversal was identified.