Loading...
See More

Rio Tinto writes down $14bn, CEO quits

Jan 17 2013 10:23 AFP

Related Articles

Rio Tinto iron ore output tops target

Rio Tinto sells small SA coal assets

BHP Billiton sells RBM stake

Rio Tinto earnings down

Rio Tinto ups Ivanhoe Mines stake

Anglo, Rio Tinto sell stakes in Palabora

 

Sydney - Anglo-Australian mining giant Rio Tinto announced a $14bn writedown related to its Mozambique coal assets and ailing aluminium business Thursday, prompting its chief executive to resign.

Rio said it expected non-cash impairments of approximately $3bn relating to its Mozambique coal project, bought in 2011, and a further $10bn-$11bn related to its aluminium assets in its annual results due February 14.

"The Rio Tinto board fully recognises that a write-down of this scale in relation to the relatively recent Mozambique acquisition is unacceptable," said chairperson Jan du Plessis.

"We are also deeply disappointed to have to take a further substantial writedown in our aluminium businesses, albeit in an industry that continues to experience significant adverse changes globally."

Du Plessis said CEO Tom Albanese had stepped down effective immediately "by mutual agreement with the Rio Tinto board" and would be succeeded in the top job by Rio Tinto's iron ore chief Sam Walsh.

Doug Ritchie, who led the acquisition of the Mozambique assets, previously known as Riversdale Mining Limited, also stood down, he said.

Neither would get a lump sum payout or outstanding bonuses.

"While I leave the business in good shape in many respects, I fully recognise that accountability for all aspects of the business rests with the CEO," Albanese said.

The announcement comes a day after the mining giant unveiled record production in 2012 and beefed up expansion plans for its flagship Australian iron ore operations.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

rio tinto  |  mining
NEXT ON FIN24X

 

Lastest Articles

Top tips to save money over the festive period Read More...
These are the top 5 most fuel efficient cars in SA Read More...
What to consider when switching medical aid schemes Read More...
Energy saving tips that'll save you money, too Read More...
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

Retailers of any shape and size can now unlock the power of mobile transacting.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...