Australia Widens Lawsuit Against Rio Tinto, Former Executives Over Mozambique Debacle
April 30 2018 - 8:48PM
Dow Jones News
By Rachel Pannett
SYDNEY--Australia's corporate regulator Tuesday said it has
expanded its legal action against Rio Tinto Ltd. (RIO.AU) and two
former executives, over mining assets in Mozambique.
The Australian Securities and Investments Commission commenced
proceedings against Rio Tinto, former Chief Executive Thomas
Albanese and former Chief Financial Officer Guy Elliott in March,
alleging they deceived investors over Mozambique coal assets bought
for $4 billion in 2011. At the time it alleged Rio Tinto
misrepresented the reserves and resources of the Mozambique coal
assets in its 2011 annual report, signed by the two men.
On Tuesday, the regulator said it is taking further action,
alleging that Rio Tinto failed to recognise an impairment of the
Mozambique coal assets in its 2012 Interim Financial Statements,
failed to disclose the substantial impairment, and other related
breaches of the country's Corporations Act.
The Australian action follows a U.S. lawsuit that began in
October, in which the Securities and Exchange Commission alleges
Rio Tinto misled investors about the value of the assets, acquired
in its takeover of Riversdale Mining Ltd.
-Write to Rachel Pannett at rachel.pannett@wsj.com
(END) Dow Jones Newswires
April 30, 2018 20:33 ET (00:33 GMT)
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