SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 20-F/A

Amendment No. 1

(Mark One)

o		Registration statement pursuant to Section 12 (b) or 12(g) of the Securities Exchange Act of 1934

þ		Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the financial year ended: 31 December 2009

o		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from: _____________ to _____________

o		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 _____________

Commission file number: 1-10533		Commission file number: 0-20122
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		Victoria, Australia
(Jurisdiction of incorporation or organisation)		(Jurisdiction of incorporation or organisation)
2 Eastbourne Terrace		Level 33, 120 Collins Street
London, W2 6LG, United Kingdom		Melbourne, Victoria 3000, Australia
(Address of principal executive offices)		(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)

		Name of each exchange		Name of each exchange
Title of each class		on which registered		on which registered		Title of each class
American Depositary Shares*		New York Stock Exchange
Ordinary Shares of 10p each**		New York Stock Exchange
7.125% Notes due 2013		New York Stock Exchange		New York Stock Exchange		7.125% Notes due 2013
5.875% Notes due 2013		New York Stock Exchange		New York Stock Exchange		5.875% Notes due 2013
6.500% Notes due 2018		New York Stock Exchange		New York Stock Exchange		6.500% Notes due 2018
7.125% Notes due 2028		New York Stock Exchange		New York Stock Exchange		7.125% Notes due 2028
8.950% Notes due 2014		New York Stock Exchange		New York Stock Exchange		8.950% Notes due 2014
9.000% Notes due 2019		New York Stock Exchange		New York Stock Exchange		9.000% Notes due 2019

*		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

 

Title of each class		Title of each class
None		Shares

None		None

Title of each class

Number

Number

Title of each class

Ordinary Shares of 10p each

1,529,003,871

606,831,240

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 þ No o

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 o No þ

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 þ No o

          Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 registrant was required to submit and post such files).* Yes þ No o

*

This requirement does not apply to the registrant until its fiscal year ending December 31, 2011.

Indicate by check mark whether the registrants are large accelerated filers, accelerated filers, or non-accelerated filers. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ		Accelerated filer o		Non-accelerated filer o		Smaller reporting company o
				(Do not check if a smaller reporting company)

     Indicate by check mark which basis of accounting the registrants have used to prepare the financial statements included in this filing:

     US GAAP o International Financial Reporting Standards as issued by the International Accounting Standards Board þ Other o

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 o Item 18 o

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o No þ

 

 

Explanatory Note

This Amendment No. 1 on Form 20-F/A (the “Amendment”) amends the Annual Report on Form 20-F for the fiscal year ended December 31, 2009 (the “Form 20-F”) filed by Rio Tinto plc and Rio Tinto Limited with the Securities and Exchange Commission on 27 May, 2010, and is being filed solely to amend the Report of Independent Registered Public Accounting Firm (the “Audit Report”) contained in Item 18 of the Form 20-F to correct a typographical error in the date of the Audit Report from 15 April 2010 to 27 May 2010.

Pursuant to Rule 12b-15 promulgated under the Securities Exchange Act of 1934, we have repeated the entire text of Item 18 of the Form 20-F in this Amendment. However, there have been no changes to the text of such item other than the change stated in the immediately preceding paragraph.

This Amendment includes a new Consent of Independent Registered Public Accounting Firm as Exhibit 15.1 and a new Consent of Independent Auditors as Exhibit 15.2 hereto and new certifications by our Principal Executive Officer and Principal Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 as Exhibits 12.1 and 13.1 hereto.

Except as expressly set forth above, this Amendment does not, and does not purport to, amend, update or restate the information in any other item of the Form 20-F or reflect any events or transactions that have occurred after the filing of the original Form 20-F. Please refer to our Current Reports on Form 6-K dated 18 October 2010 and 19 October 2010 for descriptions of such subsequent events or transactions.

RIO TINTO

PART III

Item 18. Financial Statements

The 2009 Financial statements of the Rio Tinto Group and the separate 2009 Financial statements of Minera Escondida Limitada (Rio Tinto: 30 per cent), which exceeded certain tests of significance under Rule 3-09 of Regulation S-X, are included as the “A” pages in this Annual report on Form 20-F.

Item 19. Exhibits

Exhibits marked “***” have been filed as exhibits to this amendment to the Annual report on Form 20-F/A and other exhibits have been filed previously or 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)
1.2*		Constitution of Rio Tinto Limited (ACN 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 and 20 April 2009)
2.1		Facility Agreement, dated 12 July 2007, among Rio Tinto, Credit Suisse, Deutsche Bank AG, London Branch, The Royal Bank of Scotland plc, and Societe Generale (incorporated by reference to Exhibit (b)(1) to the Schedule TO-T filed by Rio Tinto plc and Rio Tinto Canada Holding Inc. on 24 July 2007, 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
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
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
4.01		Service Agreement dated 4 May 2007 between Mr T Albanese and Rio Tinto London Limited (incorporated by reference to Exhibit 4.01 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2007, File No. 1-10533)
4.02		Memorandum effective 1 March 2008 to Service Agreement dated 12 April 2006 between Mr T Albanese and Rio Tinto London Limited (incorporated by reference to Exhibit 4.02 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2007, File No. 1-10533)
4.03		Service Agreement dated 19 June 2002 between Mr G R Elliott and Rio Tinto London Limited (incorporated by

Exhibit
Number		Description
		reference to Exhibit 4.31 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2002, File No. 1-10533)
4.04		Memorandum effective 1 March 2008 to Service Agreement dated 19 June 2002 between Mr G R Elliott and Rio Tinto London Limited (incorporated by reference to Exhibit 4.01 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2007, File No. 1-10533)
4.05		Rio Tinto plc — Share Option Plan 2004 (incorporated by reference to Exhibit 4.3 of Rio Tinto’s Registration statement on Form S-8, File No. 333-147914)
4.06		Rio Tinto plc — Mining Companies Comparative Plan 2004 (incorporated by reference to Exhibit 4.4 of Rio Tinto’s Registration statement on Form S-8, File No. 333-147914)
4.07		Rio Tinto Limited — Share Option Plan 2004 (incorporated by reference to Exhibit 4.6 of Rio Tinto’s Registration statement on Form S-8, File No. 333-147914)
4.08		Rio Tinto Limited — Mining Companies Comparative Plan 2004 (incorporated by reference to Exhibit 4.7 of Rio Tinto’s Registration statement on Form S-8, File No. 333-147914)
4.09		Medical expenses plan (incorporated by reference to Exhibit 4.67 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2000, File No. 1-10533)
4.10		Pension plan (incorporated by reference to Exhibit 4.68 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2000, File No. 1-10533)
4.11		Rules of The Rio Tinto plc 2008 Bonus Deferral Plan (incorporated by reference to Exhibit 4.15 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2008, File No. 1-10533)
4.12		US Annex to the Rules of the Rio Tinto plc 2008 Bonus Deferral Plan (incorporated by reference to Exhibit 4.16 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2008, File No. 1-10533)
4.13		Rules of The Rio Tinto Limited 2008 Bonus Deferral Plan (incorporated by reference to Exhibit 4.17 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2008, File No. 1-10533)
4.14		US Annex to the Rules of the Rio Tinto Limited 2008 Bonus Deferral Plan (incorporated by reference to Exhibit 4.18 of Rio Tinto plc’s Annual report on Form 20-F for the financial year ended 31 December 2008, File No. 1-10533)
4.15* **		Implementation Agreement between Rio Tinto Limited, Rio Tinto plc, BHP Billiton Limited and BHP Billiton plc dated 5 December 2009 (including the schedules).
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 Independent Registered Public Accounting Firm to the incorporation of the audit report relating to the Rio Tinto Group and effectiveness of internal control over financial reporting of the Rio Tinto Group by reference in registration statements on Form F-3 and Form S-8.
15.2***		Consent of Independent Auditors to the incorporation of the audit report relating to the Minera Escondida Limitada by reference in registration statements on Form F-3 and Form S-8.

Signature

The Registrants hereby certify that they meet all of the requirements for filing on Form 20-F/A and that they have duly caused and authorised the undersigned to sign this Amendment No. 1 to the Annual Report on their behalf.

Rio Tinto plc		Rio Tinto Limited
(Registrant)		(Registrant)
/s/ Tom Albanese		/s/ Tom Albanese
Name: Tom Albanese		Name: Tom Albanese
Title: Chief Executive Officer		Title: Chief Executive Officer
Date: 27 October 2010		Date: 27 October 2010

2009 Financial statements

Contents

			Page
Primary financial statements
Group income statement			A-2
Group statement of comprehensive income			A-3
Group cash flow statement			A-4
Group statement of financial position			A-5
Group statement of changes in equity			A-6
Reconciliation with Australian IFRS			A-7
Outline of dual listed companies structure and basis of financial statements			A-8
Notes to the 2009 financial statements
Note 1 - Principal accounting policies			A-9
Group income statement
Note 2 - Reconciliation of Net earnings to Underlying earnings			A-25
Note 3 - Net operating costs			A-26
Note 4 - Employment costs			A-26
Note 5 - Impairment charges			A-26
Note 6 - Share of profit after tax of equity accounted units			A-27
Note 7 - Interest receivable and payable			A-27
Note 8 - Tax on profit			A-28
Note 9 - Earnings/(loss) per ordinary share			A-30
Note 10 - Dividends			A-31
Group statement of financial position
Note 11 - Goodwill			A-31
Note 12 - Intangible assets			A-33
Note 13 - Property, plant and equipment			A-34
Note 14 - Investments in equity accounted units			A-34
Note 15 - Net debt of equity accounted units (excluding amounts due to Rio Tinto)			A-35
Note 16 - Inventories			A-35
Note 17 - Trade and other receivables			A-35
Note 18 - Deferred taxation			A-36
Note 19 - Assets held for sale			A-37
Note 20 - Other financial assets			A-37
Note 21 - Cash and cash equivalents			A-37
Note 22 - Borrowings			A-38
Note 23 - Capitalised finance leases			A-39
Note 24 - Consolidated net debt			A-39
Note 25 - Trade and other payables			A-39
Note 26 - Other financial liabilities			A-39
Note 27 - Provisions (not including taxation)			A-40
Capital and reserves
Note 28 - Share capital — Rio Tinto plc			A-41
Note 29 - Share capital — Rio Tinto Limited			A-41
Note 30 - Other reserves and retained earnings			A-42
Additional disclosures
Note 31 - Operating segments			A-43
Note 32 - Operating segments — additional information			A-45
Note 33 - Financial risk management			A-47
Note 34 - Financial instruments			A-51
Note 35 - Contingent liabilities and commitments			A-57
Note 36 - Average number of employees			A-58
Note 37 - Principal subsidiaries			A-59
Note 38 - Principal jointly controlled entities			A-60
Note 39 - Principal associates			A-61
Note 40 - Principal jointly controlled assets and other proportionally consolidated units			A-61
Note 41 - Purchases and sales of subsidiaries, joint ventures, associates and other interests in businesses			A-62
Note 42 - Directors’ and key management remuneration			A-64
Note 43 - Auditors’ remuneration			A-65
Note 44 - Related party transactions			A-66
Note 45 - Exchange rates in US$			A-66
Note 46 - Rights issues			A-66
Note 47 - Bougainville Copper Limited (‘BCL’)			A-67
Note 48 - Events after the statement of financial position date			A-67
Note 49 - Share based payments			A-68
Note 50 - Post retirement benefits			A-74
Note 51 - Rio Tinto financial information by business unit			A-78
Australian Corporations Act — summary of ASIC relief			A-81
Report of independent registered public accounting firms			A-82

Group income statement
Years ended 31 December

						2009				2008				2007
		Note				US$m				US$m				US$m
Continuing operations
Consolidated sales revenue							41,825				54,264				29,700
Net operating costs (excluding items shown separately)			3				(33,818	)			(37,641	)			(20,752	)
Impairment charges			5				(1,573	)			(8,015	)			(58	)
Profits on disposal of interests in businesses			41				692				2,231				2
Exploration and evaluation costs			12				(514	)			(1,134	)			(574	)
Profits on disposal of interests in undeveloped projects (b)			12				894				489				253
Operating profit							7,506				10,194				8,571
Share of profit after tax of equity accounted units			6				786				1,039				1,584
Profit before finance items and taxation							8,292				11,233				10,155
Finance items
Net exchange gains/(losses) on external debt and intragroup balances			24				365				(176	)			194
Net gains/(losses) on derivatives not qualifying for hedge accounting							261				(173	)			57
Interest receivable and similar income			7				120				204				134
Interest payable and similar charges			7				(929	)			(1,618	)			(538	)
Amortisation of discount							(249	)			(292	)			(166	)
							(432	)			(2,055	)			(319	)
Profit before taxation							7,860				9,178				9,836
Taxation			8				(2,076	)			(3,742	)			(2,090	)
Profit from continuing operations							5,784				5,436				7,746
Discontinued operations
Loss after tax from discontinued operations			19				(449	)			(827	)			—
Profit for the year							5,335				4,609				7,746
- attributable to outside equity shareholders							463				933				434
- attributable to equity shareholders of Rio Tinto (Net earnings)							4,872				3,676				7,312
Basic earnings/(loss) per share (c) (2008 and 2007 restated)
Profit from continuing operations			9				301.7	c			286.8	c			464.9	c
Loss from discontinued operations			9				(25.5	)c			(52.7	)c			—
Profit for the year			9				276.2	c			234.1	c			464.9	c
Diluted earnings/(loss) per share (c) (2008 and 2007 restated)
Profit from continuing operations			9				300.7	c			285.5	c			462.9	c
Loss from discontinued operations			9				(25.4	)c			(52.4	)c			—
Profit for the year			9				275.3	c			233.1	c			462.9	c

Group statement of comprehensive income
Years ended 31 December

		2009
		Attributable to
		shareholders				Outside
		of Rio Tinto				interests				Total
		US$m				US$m				US$m
Profit after tax for the year			4,872				463				5,335
Other comprehensive income
Currency translation adjustment			3,732				429				4,161
Currency translation on companies disposed of transferred to the income statement			(13	)			—				(13	)
Cash flow hedge fair value (losses)/gains:
- Cash flow hedge fair value (losses)/gains			(206	)			(107	)			(313	)
- Cash flow hedge losses transferred to the income statement			16				34				50
- Cash flow hedge gains on companies disposed of transferred to income statement			(4	)			(1	)			(5	)
Gains/(losses) on revaluation of available for sale securities			357				1				358
Gains on revaluation of available for sale securities transferred to the income statement			(3	)			—				(3	)
Actuarial (losses)/gains on post retirement benefit plans (note 30)			(847	)			3				(844	)
Share of other comprehensive income/(expense) of equity accounted units			368				—				368
Tax relating to components of other comprehensive income (note 8)			297				24				321
Other comprehensive income/(expense) for the year, net of tax			3,697				383				4,080
Total comprehensive income/(expense) for the year			8,569				846				9,415

		2008
		Attributable to
		shareholders				Outside
		of Rio Tinto				interests				Total
		US$m				US$m				US$m
Profit after tax for the year			3,676				933				4,609
Other comprehensive income
Currency translation adjustment			(4,383	)			(411	)			(4,794	)
Currency translation on companies disposed of transferred to the income statement			(2	)			—				(2	)
Cash flow hedge fair value (losses)/gains:
- Cash flow hedge fair value (losses)/gains			28				6				34
- Cash flow hedge losses transferred to the income statement			245				107				352
- Cash flow hedge gains on companies disposed of transferred to income statement			—				—				—
Gains/(losses) on revaluation of available for sale securities			(173	)			(1	)			(174	)
Gains on revaluation of available for sale securities transferred to the income statement			(1	)			—				(1	)
Actuarial (losses)/gains on post retirement benefit plans (note 30)			(1,294	)			(20	)			(1,314	)
Share of other comprehensive income/(expense) of equity accounted units			(283	)			—				(283	)
Tax relating to components of other comprehensive income (note 8)			280				(36	)			244
Other comprehensive income/(expense) for the year, net of tax			(5,583	)			(355	)			(5,938	)
Total comprehensive income/(expense) for the year			(1,907	)			578				(1,329	)

		2007
		Attributable to
		shareholders				Outside
		of Rio Tinto				interests				Total
		US$m				US$m				US$m
Profit after tax for the year			7,312				434				7,746
Other comprehensive income
Currency translation adjustment			1,765				135				1,900
Currency translation on companies disposed of transferred to the income statement			—				—				—
Cash flow hedge fair value (losses)/gains:
- Cash flow hedge fair value (losses)/gains			(199	)			(223	)			(422	)
- Cash flow hedge losses transferred to the income statement			89				76				165
- Cash flow hedge gains on companies disposed of transferred to income statement			—				—				—
Gains/(losses) on revaluation of available for sale securities			49				2				51
Gains on revaluation of available for sale securities transferred to the income statement			(16	)			—				(16	)
Actuarial (losses)/gains on post retirement benefit plans (note 30)			139				6				145
Share of other comprehensive income/(expense) of equity accounted units			(11	)			—				(11	)
Tax relating to components of other comprehensive income (note 8)			159				40				199
Other comprehensive income/(expense) for the year, net of tax			1,975				36				2,011
Total comprehensive income/(expense) for the year			9,287				470				9,757

Group cash flow statement
Years ended 31 December

						2009				2008				2007
		Note				US$m				US$m				US$m
Cash flow from consolidated operations (a)							13,224				19,195				10,805
Dividends from equity accounted units							610				1,473				1,764
Cash flows from operations							13,834				20,668				12,569
Net interest paid							(1,136	)			(1,538	)			(489	)
Dividends paid to outside shareholders of subsidiaries							(410	)			(348	)			(168	)
Tax paid							(3,076	)			(3,899	)			(3,421	)
Net cash generated from operating activities							9,212				14,883				8,491
Cash flow from investing activities
Cash inflow from disposals/acquisitions of subsidiaries, joint ventures & associates			41				2,028				2,563				(37,526	)
Purchase of property, plant and equipment and intangible assets							(5,388	)			(8,574	)			(5,000	)
Sales of financial assets							253				171				49
Purchases of financial assets							(44	)			(288	)			(273	)
Other funding of equity accounted units							(265	)			(334	)			(216	)
Other investing cash flows							59				281				224
Cash used in investing activities							(3,357	)			(6,181	)			(42,742	)
Cash flow before financing activities							5,855				8,702				(34,251	)
Cash flow from financing activities
Equity dividends paid to Rio Tinto shareholders							(876	)			(1,933	)			(1,507	)
Own shares purchased from Rio Tinto shareholders							—				—				(1,648	)
Proceeds from issue of ordinary shares in Rio Tinto							14,877				23				37
Proceeds from additional borrowings							5,775				4,697				39,195
Repayment of borrowings							(22,195	)			(12,667	)			(1,017	)
Finance lease repayments							(25	)			(10	)			(17	)
Receipt from close out of interest rate swaps							—				710				—
Other financing cash flows							(19	)			72				54
Cash used in financing activities							(2,463	)			(9,108	)			35,097
Effects of exchange rates on cash and cash equivalents							(284	)			(101	)			(27	)
Net increase/(decrease) in cash and cash equivalents							3,108				(507	)			819
Opening cash and cash equivalents less overdrafts							1,034				1,541				722
Closing cash and cash equivalents less overdrafts			21				4,142				1,034				1,541
(a) Cash flow from consolidated operations
Profit from continuing operations							5,784				5,436				7,746
Adjustments for:
Taxation			8				2,076				3,742				2,090
Finance items							432				2,055				319
Share of profit after tax of equity accounted units			6				(786	)			(1,039	)			(1,584	)
Profit on disposal of interests in businesses			41				(692	)			(2,231	)			(2	)
Impairment charges			5				1,573				8,015				58
Depreciation and amortisation							3,427				3,475				2,115
Provisions (including exchange losses/(gains) on provisions)			27				930				265				308
Utilisation of provisions			27				(363	)			(464	)			(162	)
Utilisation of provision for post retirement benefits			27				(470	)			(448	)			(121	)
Change in inventories							653				(1,178	)			130
Change in trade and other receivables							908				658				(385	)
Change in trade and other payables							(570	)			951				375
Other items							322				(42	)			(82	)
							13,224				19,195				10,805

Group statement of financial position
At 31 December

						2009				2008
		Note				US$m				US$m
Non current assets
Goodwill			11				14,268				14,296
Intangible assets			12				5,730				6,285
Property, plant and equipment			13				45,803				41,753
Investments in equity accounted units			14				6,735				5,053
Loans to equity accounted units							170				264
Inventories			16				284				166
Trade and other receivables			17				1,375				1,111
Deferred tax assets			18				2,231				1,367
Tax recoverable							85				220
Other financial assets			20				841				666
							77,522				71,181
Current assets
Inventories			16				4,889				5,607
Trade and other receivables			17				4,447				5,401
Loans to equity accounted units							168				251
Tax recoverable							501				406
Other financial assets			20				694				264
Cash and cash equivalents			21				4,233				1,181
							14,932				13,110
Assets of disposal groups held for sale			19				4,782				5,325
Total assets							97,236				89,616
Current liabilities
Bank overdrafts repayable on demand			21				(91	)			(147	)
Borrowings			22				(756	)			(9,887	)
Trade and other payables			25				(5,759	)			(7,197	)
Other financial liabilities			26				(412	)			(480	)
Tax payable							(1,329	)			(1,442	)
Provisions			27				(1,182	)			(826	)
							(9,529	)			(19,979	)
Non current liabilities
Borrowings			22				(22,155	)			(29,724	)
Trade and other payables			25				(591	)			(452	)
Other financial liabilities			26				(601	)			(268	)
Tax payable							(299	)			(450	)
Deferred tax liabilities			18				(4,304	)			(4,054	)
Provision for post retirement benefits			27				(4,993	)			(3,601	)
Other provisions			27				(7,519	)			(6,506	)
							(40,462	)			(45,055	)
Liabilities of disposal groups held for sale			19				(1,320	)			(2,121	)
Total liabilities							(51,311	)			(67,155	)
Net assets							45,925				22,461
Capital and reserves
Share capital
- Rio Tinto plc			28				246				160
- Rio Tinto Limited (excluding Rio Tinto plc interest)			29				4,924				961
Share premium account (a)							4,174				4,705
Other reserves			30				14,010				(2,322	)
Retained earnings			30				20,477				17,134
Equity attributable to Rio Tinto shareholders			30				43,831				20,638
Attributable to outside equity shareholders (a)							2,094				1,823
Total equity							45,925				22,461

Group statement of changes in equity
Years ended

31 December 2009

		Attributable to shareholders of Rio Tinto
		Share				Share				Retained				Other
		capital				premium				earnings				reserves								Outside				Total
		(notes 28 and 29)				(a)				(note 30)				(note 30)				Total				interests				equity
		US$m				US$m				US$m				US$m				US$m				US$m				US$m
Opening balance			1,121				4,705				17,134				(2,322	)			20,638				1,823				22,461
Total comprehensive income for the year (b)			—				—				4,168				4,401				8,569				846				9,415
Currency translation arising from Rio Tinto Limited’s share capital (c)			710				—				—				—				710				—				710
Dividends			—				—				(876	)			—				(876	)			(410	)			(1,286	)
Own shares purchased from Rio Tinto shareholders to satisfy share options			—				—				(17	)			(35	)			(52	)			—				(52	)
Ordinary shares issued			3,339				(531	)			3				11,936				14,747				—				14,747
Shares issued to outside interests			—				—				—				—				—				53				53
Subsidiaries now equity accounted			—				—				—				—				—				(218	)			(218	)
Employee share options and other IFRS 2 charges taken to the income statement			—				—				65				30				95				—				95
Closing balance			5,170				4,174				20,477				14,010				43,831				2,094				45,925

31 December 2008

		Attributable to shareholders of Rio Tinto
		Share								Retained			Other
		capital				Share				earnings			reserves									Outside				Total
		(notes 28 and 29)				premium				(note 30)			(note 30)						Total			interests				equity
		US$m				US$m				US$m			US$m						US$m			US$m				US$m
Opening balance			1,391				1,932				19,033				2,416				24,772				1,521				26,293
Total comprehensive income/ (expense) for the year (b)			—				—				2,742				(4,649	)			(1,907	)			578				(1,329	)
Currency translation arising from Rio Tinto Limited’s share capital (c)			(258	)			—				—				—				(258	)			—				(258	)
Dividends			—				—				(1,933	)			—				(1,933	)			(348	)			(2,281	)
Own shares purchased from Rio Tinto shareholders to satisfy share options			—				—				—				(128	)			(128	)			—				(128	)
Ordinary shares issued			—				6				25				—				31				—				31
Own shares purchased and cancelled			(12	)			2,767				(2,767	)			12				—				—				—
Shares issued to outside interests			—				—				—				—				—				72				72
Employee share options taken to the income statement			—				—				34				27				61				—				61
Closing balance			1,121				4,705				17,134				(2,322	)			20,638				1,823				22,461

31 December 2007

		Attributable to shareholders of Rio Tinto
		Share								Retained			Other
		capital				Share				earnings			reserves									Outside				Total
		(notes 28 and 29)				premium				(note 30)			(note 30)						Total			interests				equity
		US$m				US$m				US$m			US$m						US$m			US$m				US$m
Opening balance			1,271				1,919				14,401				641				18,232				1,153				19,385
Total comprehensive income/ (expense) for the year (b)			—				—				7,468				1,819				9,287				470				9,757
Currency translation arising from Rio Tinto Limited’s share capital (c)			120				—				—				—				120				—				120
Dividends			—				—				(1,507	)			—				(1,507	)			(164	)			(1,671	)
Own shares purchased from Rio Tinto shareholders to satisfy share options			—				—				—				(64	)			(64	)			—				(64	)
Ordinary shares issued			—				13				24				—				37				—				37
Shares issued to outside interests			—				—				—				—				—				38				38
Employee share options taken to the income statement			—				—				19				20				39				—				39
Own shares purchased under capital management programme			—				—				(1,372	)			—				(1,372	)			—				(1,372	)
Outside interest in acquired companies			—				—				—				—				—				24				24
Closing balance			1,391				1,932				19,033				2,416				24,772				1,521				26,293

Reconciliation with Australian IFRS

The Group’s financial statements have been prepared in accordance with IFRS both as adopted by the European Union (‘EU IFRS’) and as issued by the International Accounting Standards Board (‘IFRS’), which differs in certain respects from the version of IFRS that is applicable in Australia (‘Australian IFRS’).

Prior to 1 January 2004, the Group’s financial statements were prepared in accordance with UK GAAP. Under IFRS goodwill on acquisitions prior to 1998, which was eliminated directly against equity in the Group’s UK GAAP financial statements, has not been reinstated. This was permitted under the rules governing the transition to IFRS set out in IFRS 1. The equivalent Australian Standard, AASB 1, does not provide for the netting of goodwill against equity. As a consequence, shareholders’ funds under Australian IFRS include the residue of such goodwill, which amounted to US$597 million at 31 December 2009 (2008: US$752 million).

Save for the exception described above, the Group’s financial statements drawn up in accordance with IFRS are consistent with the requirements of Australian IFRS.

Outline of dual listed companies structure and basis of financial statements

The Rio Tinto Group

These are the financial statements of the Rio Tinto Group (the ‘Group’), formed through the merger of economic interests (‘merger’) of Rio Tinto plc and Rio Tinto Limited, and presented by both Rio Tinto plc and Rio Tinto Limited as their consolidated accounts in accordance with both United Kingdom and Australian legislation and regulations.

Merger terms

On 21 December 1995, Rio Tinto plc and Rio Tinto Limited, which are listed respectively on Stock Exchanges in the United Kingdom and Australia, entered into a dual listed companies (‘DLC’) merger. This was effected by contractual arrangements between the companies and amendments to Rio Tinto plc’s Memorandum and Articles of Association and Rio Tinto Limited’s constitution.

As a result, Rio Tinto plc and Rio Tinto Limited and their respective groups operate together as a single economic enterprise, with neither assuming a dominant role. In particular, the arrangements:

- confer upon the shareholders of Rio Tinto plc and Rio Tinto Limited a common economic interest in both groups;

- provide for common boards of directors and a unified management structure;

- provide for equalised dividends and capital distributions; and

- provide for the shareholders of Rio Tinto plc and Rio Tinto Limited to take key decisions, including the election of directors, through an electoral procedure in which the public shareholders of the two companies effectively vote on a joint basis.

The merger involved no change in the legal ownership of any assets of Rio Tinto plc or Rio Tinto Limited, nor any change in the ownership of any existing shares or securities of Rio Tinto plc or Rio Tinto Limited, nor the issue of any shares, securities or payment by way of consideration, save for the issue by each company of one special voting share to a trustee company which provides the joint electoral procedure for public shareholders. During 2002, each of the parent companies issued a DLC Dividend Share to facilitate the efficient management of funds within the DLC structure.

Accounting standards

The financial statements have been drawn up in accordance with International Financial Reporting Standards both as adopted by the European Union (‘EU IFRS’) and as issued by the International Accounting Standards Board (‘IFRS’). The merger of economic interests of Rio Tinto plc and Rio Tinto Limited was accounted for as a merger under UK GAAP. As permitted under the rules governing the transition to IFRS, which are set out in IFRS 1, the Group did not restate business combinations that occurred before the transition date of 1 January 2004. As a result, the DLC merger of economic interests described above continues to be accounted for as a merger under IFRS.

The main consequence of adopting merger rather than acquisition accounting is that the statement of financial position of the merged Group includes the assets and liabilities of Rio Tinto plc and Rio Tinto Limited at their carrying values prior to the merger, subject to adjustments to achieve uniformity of accounting policies, rather than at their fair values at the date of the merger. For accounting purposes Rio Tinto plc and Rio Tinto Limited are viewed as a single public parent company (with their respective public shareholders being the shareholders in that single company). As a result the amounts attributable to both Rio Tinto plc and Rio Tinto Limited public shareholders are included in the amounts attributed to equity shareholders on the statement of financial position, income statement and statement of comprehensive income.

Australian Corporations Act

The financial statements are drawn up in accordance with an order, under section 340 of the Australian Corporations Act 2001, issued by the Australian Securities and Investments Commission (‘ASIC’) on 27 January 2006 (as amended on 22 December 2006). The main provisions of the order are that the financial statements are:

- to be made out in accordance with IFRS as adopted by the European Union (‘EU IFRS’); and

- to include a reconciliation from EU IFRS to the Australian equivalents of IFRS (see above).

For further details of the ASIC Class Order relief see page A-81.

Notes to the 2009 Financial statements

1 Principal accounting policies

Corporate information

		The financial statements of the Group were authorised for issue in accordance with a directors’ resolution on 5 March 2010. The financial statements in the 20-F were authorised for issue by the board of directors on 27 May 2010. Rio Tinto plc and Rio Tinto Limited are listed and incorporated respectively on Stock Exchanges in the United Kingdom and Australia. Rio Tinto plc’s registered office is at 2 Eastbourne Terrace, London W2 6LG, United Kingdom. Rio Tinto Limited’s registered office is at 120 Collins Street, Melbourne, Australia, 3000.
		Rio Tinto’s business is finding, mining and processing mineral resources. Major products are aluminium, copper, diamonds, coal, uranium, gold, industrial minerals (borax, titanium dioxide, salt, talc), and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and Africa.
		Basis of preparation
		The basis of preparation and accounting policies used in preparing the financial statements for the year ended 31 December 2009 are set out below.
		The financial statements for the year ended 31 December 2009 have been prepared in accordance with International Financial Reporting Standards both as adopted by the EU (‘EU IFRS’) and as issued by the International Accounting Standards Board (‘IFRS’), Interpretations issued from time to time by the International Financial Reporting Interpretations Committee (‘IFRIC’) adopted by the European Union that are mandatory for the year ended 31 December 2009, the Companies Act 2006 applicable to companies reporting under IFRS and in accordance with applicable United Kingdom law, applicable Australian law as amended by the Australian Securities and Investments Commission Order dated 27 January 2006 (as amended on 22 December 2006) and Article 4 of the European Union IAS regulation.
		The IFRS financial information has been drawn up on the basis of accounting policies consistent with those applied in the financial statements for the year to 31 December 2008, except for the following:

			IFRS 8 Operating segments
			IFRS 7 Financial instruments – Disclosures (amendment)
			IAS 1 Presentation of financial statements (revised)
			IFRS 2 (amendment), Share-based payment — Vesting conditions and cancellations
			Amendment to IAS 32 Financial instruments:Presentation and IAS 1 Presentation of financial statements Puttable financial instruments and obligations arising on liquidation
			Amendment to IAS 39 – Eligible hedged items
			Amendment to IAS 39 and IFRS 7 – Reclassification of financial assets
			Amendment to IFRIC 9 and IAS 39 on embedded derivatives
			Improvements to IFRS 2008 — to the extent mandatory in 2009. This standard collates many minor changes to IFRS. The amendments most relevant to the Group relate to the classification of derivatives which are not hedges by maturity rather than as short term and the imputation of interest on government grants.
			IFRIC 12 Service concession arrangements
			IFRIC 13 Customer loyalty programmes
			IFRIC 15 Agreements for construction of real estate
			IFRIC 16 Hedges of a net investment in a foreign operation
			IFRIC 18 Transfers of assets from customers

		The effect of adopting the above standards and interpretations is not material to Group earnings or to shareholders’ funds in the current or prior year. Therefore, prior year information has not been restated. IFRS 7, IFRS 8 and IAS 1 (revised) relate to disclosure only, prior year information has been reclassified to conform with the current presentation. The reclassifications do not affect prior year statements of financial position.
		In addition, the Group has early adopted Amendment to IAS 32 Classification of rights issues. The amendment permits rights issues to existing shareholders which allow those shareholders to receive a fixed number of shares at a fixed price in a currency other than the entity’s functional currency, to be classed as equity transactions provided the offer is pro rata to all shareholders. Prior to the amendment such an offer was treated as giving rise to a derivative liability. As a consequence, the US$827 million gain in the income statement which arose at the half year under the previous accounting rules has been removed with a corresponding credit to equity.
		The Group has not applied the following pronouncements: those which are expected to be most relevant to the Group are IFRS 3 and IAS 27 (revised).

			IAS 1 (amendment), Presentation of financial statements — mandatory for year 2010
			IAS 27 (revised) Consolidated and separate financial statements - mandatory for year 2010. The standard requires the effects of all increases or decreases in the ownership of subsidiaries to be recorded in equity if there is no change in control. They will therefore no longer result in goodwill or gains and losses. The standard also specifies the accounting when control is lost.
			Any remaining interest in the company is re-measured to fair value and a gain or loss is recognised in profit or loss.
			IAS 38 (amendment), Intangible Assets — mandatory for year 2010
			IFRS 3 (amendment) Business combinations - mandatory for business combinations after 1 January 2010. Under the revised standard, all payments to purchase a business are to be recorded at fair value at the acquisition date with contingent payments classified as debt subsequently re-measured through the income statement. All acqusition related costs should be expensed. When a business is acquired in which the Group previously held a non-controlling stake, or the Group increases its stake in a business which it does not control, the existing stake is re-measured to fair value at the date of acquisition. Any difference between fair value and carrying value is taken to the income statement.
			IFRS 5 (amendment), Non-current assets held for sale and discontinued operations — mandatory for year 2010
			Eligible Hedged Items (an amendment to IAS 39 Financial Instruments: Recognition and Measurement) - mandatory for year 2010
			IFRIC 17 Non cash distributions to owners - mandatory for year 2010
			IFRS 2 Share-based payment – Group cash settled share based payment transactions -mandatory for year 2010

			Improvements to IFRS 2009 — mandatory for year 2010. This standard collates further minor changes to IFRS.
			Amendment to IFRIC 14, IAS 19 – Prepayments of a minimum funding requirement -mandatory for year 2011
			Amendment to IAS 24 Related party disclosures - mandatory for year 2011
			IFRIC 19 Extinguishing financial liabilities with equity instruments - mandatory for year 2011
			IFRS 9, Financial instruments — mandatory for year 2013

The Group is evaluating the impact of the above pronouncements. The above changes are not expected to be material to the Group’s earnings or to shareholders’ funds.

Notes to the 2009 Financial statements

1 Principal accounting policies continued

		Judgements in applying accounting policies and key sources of estimation uncertainty
		Many of the amounts included in the financial statements involve the use of judgement and/or estimation. 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 from the amounts included in the financial statements. Information about such judgements and estimation is contained in the accounting policies and/or the Notes to the financial statements, and the key areas are summarised below.
		Areas of judgement that have the most significant effect on the amounts recognised in the financial statements are:

			- Merger accounting for the 1995 merger of the economic interests of Rio Tinto plc and Rio Tinto Limited into the dual listed companies (‘DLC’) structure (page A-8).
			- Review of asset carrying values and impairment charges and reversals note 1(e) and (i), note 5 and note 11
			- Estimation of asset lives, note 1 (e and i)
			- Determination of ore reserve estimates — note 1(j)
			- Close down, restoration and clean up obligations — note 1(k)
			- Deferral of stripping costs — note 1(h)
			- Recognition of deferred tax on mineral rights recognised in acquisitions — note 1(m)
			- Capitalisation of exploration and evaluation costs -note 1(f)
			- Identification of functional currencies — note 1(d)
			- The definition of Underlying earnings — note 2
			- Acquisitions — note 1(b)

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:

			- Review of asset carrying values and impairment charges and reversals note 1(e) and (i), note 5 and note 11
			- Estimation of close down and restoration costs and the timing of expenditure — note 1(k) and note 27
			- Estimation of environmental clean up costs and the timing of expenditure — note 1(k) and note 27
			- Estimation of liabilities for post retirement costs — note 50
			- Recoverability of potential deferred tax assets — note 1 (m) and note 18 (d)
			- Contingencies — note 35

		These areas of judgement and estimation are discussed further on page A-19.
(a)		Accounting convention
		The financial information included in the financial statements for the year ended 31 December 2009, and for the related comparative period, has been prepared under the historical cost convention, as modified by the revaluation of certain derivative contracts, financial assets and post retirement assets and liabilities. The Group’s policy in respect of these items is set out in the notes below.
(b)		Basis of consolidation
		The financial statements consist of the consolidation of the accounts of Rio Tinto plc and Rio Tinto Limited (together ‘the Companies’) and their respective subsidiaries (together ‘the Group’).
		All intragroup balances, transactions, income and expenses and profits or losses, including unrealised profits arising from intragroup transactions, have been eliminated on consolidation. Unrealised losses are eliminated in the same way as unrealised gains except that they are only eliminated to the extent that there is no evidence of impairment.
		Subsidiaries: Subsidiaries are entities over which the Companies have the power to govern the financial and operating policies in order to obtain benefits from their activities. Control is presumed to exist where the Companies own more than one half of the voting rights (which does not always equate to percentage ownership) unless it can be demonstrated that ownership does not constitute control. Control does not exist where other parties hold veto rights over significant operating and financial decisions. In assessing control, potential voting rights that are currently exercisable or convertible are taken into account. The consolidated financial statements include all the assets, liabilities, revenues, expenses and cash flows of the Companies and their subsidiaries after eliminating intragroup transactions as noted above.
		For partly owned subsidiaries, the allocation of net assets and net earnings to outside shareholders is shown in the line ‘Amounts attributable to outside equity shareholders’ on the face of the Group statement of financial position and Group income statement.
		Associates: An associate is an entity, that is neither a subsidiary nor a joint venture, over whose operating and financial policies the Group exercises significant influence. Significant influence is presumed to exist where the Group has between 20 per cent and 50 per cent of the voting rights, but can also arise where the Group holds less than 20 per cent if it has the power to be actively involved and influential in policy decisions affecting the entity. The Group’s share of the net assets, post tax results and reserves of associates are included in the financial statements using the equity accounting method. This involves recording the investment initially at cost to the Group, which therefore includes any goodwill on acquisition, and then, in subsequent periods, adjusting the carrying amount of the investment to reflect the Group’s share of the associate’s results less any impairment of goodwill and any other changes to the associate’s net assets such as dividends. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates.
		Joint ventures: A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. Joint control is the contractually agreed sharing of control such that significant operating and financial decisions require the unanimous consent of the parties sharing control. In some situations, joint control exists even though the Group has an ownership interest of more than 50 per cent because of the veto rights held by joint venture partners. The Group has two types of joint ventures:
		Jointly controlled entities (‘JCEs’): A JCE is a joint venture that involves the establishment of a corporation, partnership or other entity in which each venturer has a long term interest. JCEs are accounted for using the equity accounting method. In addition, for both associates and jointly controlled entities, the carrying value will include any long term debt interests that in substance form part of the Group’s net investment.
		Jointly controlled assets (‘JCAs’): A JCA is a joint venture in which the venturers have joint control over the assets contributed to or acquired for the purposes of the joint venture. JCAs do not involve the establishment of a corporation, partnership or other entity. This includes situations where the participants derive benefit from the joint activity through a share of the production, rather than by receiving a share of the results of trading. The Group’s proportionate interest in the assets, liabilities, revenues, expenses and cash flows of JCAs are incorporated into the Group’s financial statements under the appropriate headings.
		The Group uses the term ‘Equity accounted units’ to refer to associates and jointly controlled entities collectively.
		Where necessary, adjustments are made to the results of subsidiaries, joint ventures and associates to bring their accounting policies into line with those used by the Group.

Notes to the 2009 Financial statements

1 Principal accounting policies continued

		Acquisitions
		On the acquisition of a subsidiary, the purchase method of accounting is used whereby the purchase consideration is allocated to the identifiable assets, liabilities and contingent liabilities (identifiable net assets) of the subsidiary on the basis of fair value at the date of acquisition. Provisional fair values allocated at a reporting date are finalised within twelve months of the acquisition date.
		When part or all of the amount of purchase consideration is contingent on future events, the cost of the acquisition initially recorded includes a reasonable estimate of the fair value of the contingent amounts expected to be payable in the future. The cost of the acquisition is adjusted when revised estimates are made, with corresponding adjustments made to goodwill until the ultimate outcome is known.
		The results of businesses acquired during the year are brought into the consolidated financial statements from the date on which control, joint control or significant influence commences and taken out of the financial statements from the date on which control, joint control or significant influence ceases.
		Disposals
		Individual non current assets or ‘disposal groups’ (ie groups of assets and liabilities) to be disposed of, by sale or otherwise in a single transaction, are classified as ‘held for sale’ if the following criteria are met:
		- the carrying amount will be recovered principally through a sale transaction rather than through continuing use, and
		- the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for such sales, and
		- the sale is highly probable.
		Disposal groups held for sale are carried at the lower of their carrying amount and fair value less costs to sell and are presented separately on the face of the statement of financial position with the related assets and liabilities being presented as a single asset and a single liability respectively. Comparative statement of financial position information is not restated. Disposal groups acquired with a view to resale are held at fair value determined at the acquisition date and no profits or losses are recognised between acquisition date and disposal date.
		For a disposal group held for sale that continues to be carried at its carrying amount, the profit on disposal, calculated as net sales proceeds less the carrying amount, is recognised in the income statement in the period during which control passes to the buyer. Where the fair value less costs to sell of a disposal group is lower than the carrying amount at the time of classification as held for sale, the resulting charge is recognised in the income statement in that period. On classification as held for sale, the assets are no longer depreciated. When the fair value less costs to sell of a disposal group falls below the carrying amount during the period in which it is classified as held for sale, the charge is included in the income statement at that time.
		If the disposal group or groups represent a separate major line of business or geographical area of operations, or are part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or are subsidiaries acquired exclusively with a view to resale, they are classified as discontinued operations. The net results attributable to such discontinued operations are shown separately and comparative figures in the income and cash flow statements are restated.
		The Group accounts for transactions with outside equity shareholders using the ‘parent company’ model. Under this model, acquisitions of an outside equity shareholders’ interest will generally give rise to additional goodwill and a disposal will give rise to a profit or loss in the income statement.
(c)		Sales revenue
		Sales revenue comprises sales to third parties at invoiced amounts, with most sales being priced ex works, free on board (f.o.b.) or cost, insurance and freight (c.i.f.). Amounts billed to customers in respect of shipping and handling are classed as sales revenue where the Group is responsible for carriage, insurance and freight. All shipping and handling costs incurred by the Group are recognised as operating costs. If the Group is acting solely as an agent, amounts billed to customers are offset against the relevant costs. Revenue from services is recognised as services are rendered and accepted by the customer.
		Sales revenue excludes any applicable sales taxes. Mining royalties are presented as an operating cost or, where they are in substance a profit based tax, within taxes. Co-product revenues are included in sales revenue.
		A large proportion of Group production is sold under medium to long term contracts, but sales revenue is only recognised on individual sales when persuasive evidence exists that all of the following criteria are met:
		- the significant risks and rewards of ownership of the product have been transferred to the buyer;
		- neither continuing managerial involvement to the degree usually associated with ownership, nor effective control over the goods sold, has been retained;
		- the amount of revenue can be measured reliably;
		- it is probable that the economic benefits associated with the sale will flow to the Group; and
		- the costs incurred or to be incurred in respect of the sale can be measured reliably.
		These conditions are generally satisfied when title passes to the customer. In most instances sales revenue is recognised when the product is delivered to the destination specified by the customer, which is typically the vessel on which it will be shipped, the destination port or the customer’s premises.
		Sales revenue is commonly subject to adjustment based on an inspection of the product by the customer. In such cases, sales revenue is initially recognised on a provisional basis using the Group’s best estimate of contained metal, and adjusted subsequently.
		Certain products are ‘provisionally priced’, ie the selling price is subject to final adjustment at the end of a period normally ranging from 30 to 180 days after delivery to the customer, based on the market price at the relevant quotation point stipulated in the contract.
		As is customary in the industry, revenue on provisionally priced sales is recognised based on estimates of the fair value of the consideration receivable based on forward market prices. At each reporting date provisionally priced metal is marked to market based on the forward selling price for the quotational period stipulated in the contract. For this purpose, the selling price can be measured reliably for those products, such as copper, for which there exists an active and freely traded commodity market such as the London Metals Exchange and the value of product sold by the Group is directly linked to the form in which it is traded on that market.
		The marking to market of provisionally priced sales contracts is recorded as an adjustment to sales revenue. Information on provisionally priced sales contracts is included in note 33.
		Certain other of the Group’s products, such as iron ore, are sold under long term contracts at a benchmark price which is agreed annually.

Notes to the 2009 Financial statements

1 Principal accounting policies continued

		Where the benchmark price has not been finally agreed at the end of an accounting period, revenue is estimated based on the best available information, having reference to the terms of the contractual agreement and, where appropriate, to sales with other customers.
(d)		Currency translation
		The functional currency for each entity in the Group, and for jointly controlled entities and associates, is the currency of the primary economic environment in which it operates. For many entities, this is the currency of the country in which they operate. Transactions denominated in other currencies are converted to the functional currency at the exchange rate ruling at the date of the transaction unless hedge accounting applies, in which case the contract rate is used. Generally, this applies when derivatives or embedded derivatives are designated as cashflow hedges of the Group’s sales. The Group’s accounting policies for derivative financial instruments and hedge accounting are explained in more detail in note (p) (iii) below. Monetary assets and liabilities denominated in foreign currencies are retranslated at year end exchange rates.
		The US dollar is the currency in which the Group’s Financial statements are presented, as it most reliably reflects the global business performance of the Group as a whole.
		On consolidation, income statement items are translated from the functional currency into US dollars at average rates of exchange. Statement of financial position items are translated into US dollars at year end exchange rates. Exchange differences on the translation of the net assets of entities with functional currencies other than the US dollar, and any offsetting exchange differences on net debt hedging those net assets, are recognised directly in the foreign currency translation reserve via the statement of comprehensive income (net of translation adjustments relating to Rio Tinto Limited’s share capital).
		Exchange gains and losses which arise on balances between Group entities are taken to the foreign currency translation reserve where the intragroup balance is, in substance, part of the Group’s net investment in the entity.
		The balance of the foreign currency translation reserve relating to an operation that is disposed of is transferred to the income statement at the time of the disposal.
		The Group finances its operations primarily in US dollars but part of the Group’s US dollar debt is located in subsidiaries having functional currencies other than the US dollar. Except as noted above, exchange gains and losses relating to such US dollar debt are charged or credited to the Group’s income statement in the year in which they arise. This means that the impact of financing in US dollars on the Group’s income statement is dependent on the functional currency of the particular subsidiary where the debt is located.
		Exchange differences arising on closure provisions are capitalised at operating mines. Except as noted above, or in note (p) below relating to derivative contracts, all other exchange differences are charged or credited to the income statement in the year in which they arise.
(e)		Goodwill and intangible assets (excluding exploration and evaluation expenditure)
		Goodwill represents the difference between the cost of acquisition and the fair value of the identifiable assets, liabilities and contingent liabilities acquired. Goodwill is initially determined based on provisional fair values. Fair values are finalised within 12 months of the acquisition date. Goodwill on acquisition of subsidiaries is separately disclosed and goodwill on acquisitions of associates and JCEs is included within investments in equity accounted units. For non wholly owned subsidiaries, interests attributable to outside equity shareholders are initially recorded based on the proportion of the fair values of the identifiable assets and liabilities and contingent liabilities recognised at acquisition attributable to outside equity shareholders. Where the Group’s interest in the net fair value of the acquired company’s identifiable assets, liabilities and contingent liabilities exceeds costs, the values assigned are reassessed. Any excess after that reassessment is recognised immediately in the income statement.
		In 1997 and previous years, goodwill was eliminated against reserves in the year of acquisition as a matter of accounting policy, as was then permitted under UK GAAP. Such goodwill was not reinstated under subsequent UK accounting standards or on transition to IFRS.
		Goodwill is not amortised; rather it is tested annually for impairment. Goodwill is allocated to the cash generating unit or group of cash generating units expected to benefit from the related business combination for the purposes of impairment testing which is carried out in accordance with accounting policy note 1(i). Goodwill impairments cannot be reversed. Investments in equity accounted units are tested for impairment as a single asset. Goodwill included in the Group’s investment in equity accounted units is not tested on an annual basis therefore but only as part of the Group’s overall testing for impairment when a trigger for impairment has been identified.
		Intangible assets acquired as part of an acquisition of a business are capitalised separately from goodwill if the asset is separable or arises from contractual or legal rights, and the fair value can be measured reliably on initial recognition.
		Purchased intangible assets are initially recorded at cost and finite life intangible assets are amortised over their useful economic lives on a straight line or units of production basis, as appropriate. Intangible assets having indefinite lives and intangible assets that are not yet ready for use are not amortised and are reviewed annually for impairment in accordance with accounting policy note 1(i).
		Intangible assets are considered to have indefinite lives when, based on an analysis of all of the relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate cash flows for the Group. The factors considered in making this determination include the existence of contractual rights for unlimited terms; or evidence that renewal of the contractual rights without significant incremental cost can be expected for indefinite periods into the future in view of the Group’s future investment intentions. The life cycles of the products and processes that depend on the asset are also considered.
		Where amortisation is calculated on a straight line basis, the following useful lives have been determined for classes of intangible assets.
		Trademark, patented and non patented technology
		Trademarks: 14 to 20 years
		Patented and non patented technology: 10 to 20 years
		Other intangible assets
		Internally generated intangible assets and computer software: 2 to 5 years

		Other intangible assets: 2 to 20 years
		Contract based intangible assets
		Power contracts: 2 to 39 years
		Other purchase and customer contracts: 5 to 15 years

Notes to the 2009 Financial statements

1 Principal accounting policies continued

(f)		Exploration and evaluation
		Exploration and evaluation expenditure comprises 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; and/or
			- compiling pre-feasibility and feasibility studies.