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Australia corporate watchdog expands legal action against Rio Tinto, former executives

Published 2018-04-30, 08:07 p/m
© Reuters.  Australia corporate watchdog expands legal action against Rio Tinto, former executives
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SYDNEY, May 1 (Reuters) - Australia's corporate watchdog said on Tuesday it has expanded legal action against miner Rio Tinto RIO.AX RIO.L and two former top executives, alleging a failure to recognise an impairment in its Mozambique coal assets in 2012 financial statements.

The new allegations against former Chief Executive Tom Albanese and former Chief Financial Officer Guy Elliott come on top of claims the executives misled investors about the coal reserves in the 2011 annual report. Tinto had no immediate comment on Tuesday, has denied any wrongdoing in a similar case brought by the U.S. Securities and Exchange Commission. Tinto bought Riversdale Mining, later renamed Rio Tinto Coal Mozambique, for $4 billion in 2011, but later wrote off about $3.5 billion of its value.

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