The corporate watchdog is taking legal action against Rio Tinto and two former executives over allegations of misleading or deceptive conduct, amid similar charges in the United States.
The Australian Securities and Investments Commission (ASIC) said it has commenced proceedings against the mining giant, its former chief executive Tom Albanese and former chief financial officer Guy Elliott.
The regulator is alleging Rio made misleading or deceptive statements about the reserves and resources of a Mozambique coal investment in the 2011 annual report signed by Mr Albanese and Mr Elliott.
Rio purchased the Riversdale Mining company in Mozambique for $US3.7 billion ($4.77b) in 2011.
In 2013, it took an impairment charge of more than $US3 billion ($3.9b) against the assets and Mr Albanese resigned as chief executive.
Rio Tinto was contacted regarding the allegations made by ASIC but told the ABC it had no comment at this stage.
It comes as Rio Tinto and the former executives face fraud charges in the US over claims they overstated the value of the investment.
They applied to have the fraud charges dismissed, but the US Securities and Exchange Commission (SEC) decided to push ahead with the prosecution.
Rio Tinto, Mr Albanese and Mr Elliott have denied the SEC's allegations.
In October last year, Rio Tinto reached a settlement with the UK Financial Conduct Authority over claims it breached disclosure rules in relation to the Mozambique assets and agreed to pay a 27 million pound fine.
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