* ASIC alleges Rio misled investors over Mozambique coalreserves
* ASIC seeks fines against Rio Tinto ex-CEO, ex-CFO
* ASIC seeks to bar Albanese, Elliott from heading companies (Adds ASIC, Rio Tinto comments U.S. SEC case)
By Sonali Paul
MELBOURNE, March 2 (Reuters) - Australia's corporatewatchdog said on Friday it has launched court action againstglobal miner Rio Tinto RIO.AX RIO.L and two former executivesfor misleading investors about the coal reserves it reported ina $4 billion acquisition in Mozambique.
The Australian Securities and Investments Commission saidthe company and its former Chief Executive Tom Albanese andformer Chief Financial Officer Guy Elliott had made deceptivestatements in their 2011 annual report, published in 2012.
"ASIC alleges that RTL (Rio Tinto Ltd) engaged in misleadingor deceptive conduct by publishing statements in the 2011 annualreport, signed by Mr Albanese and Mr Elliott, misrepresentingthe reserves and resources of RTCM (Rio Tinto Coal Mozambique),"the commission said in a statement.
Rio Tinto had no immediate comment on ASIC's action, but haspreviously denied any wrongdoing in a similar case brought bythe U.S. Securities and Exchange Commission.
Rio Tinto now faces court cases in the United States andAustralia over the disastrous acquisition of Riversdale inMozambique, with the U.S. SEC having charged the company,Albanese and Elliott with fraud.
"The outcomes of these matters, and associated class actionsthat have been commenced on behalf of securities holders, remainuncertain, but they could ultimately expose the Group tomaterial financial cost," the company said in its 2017 annualreport released on Friday.
ASIC said it is asking the court to declare that Rio Tintobroke the Corporations Act, is seeking monetary penaltiesagainst Albanese and Elliott and is asking the court to bar themfrom managing corporations "for such periods as the court thinksfit".
The commission is continuing investigations into thecircumstances surrounding the impairment of the Mozambique coalassets, it said, declining to comment further.
Rio Tinto bought Riversdale for $4 billion in 2011, wroteoff about $3.5 billion of its value and sacked Albanese andother executives involved in the deal in 2013. The Mozambiquedeal came on top of hefty writedowns on a previous acquisition.
The SEC alleges that the company and executives inflated thevalue of coal assets in Mozambique and concealed criticalinformation while tapping the market for billions of dollars. company, Albanese and Elliott have all said they wouldvigorously defend themselves against the allegations.
Rio Tinto already reached a settlement with the UK'sFinancial Conduct Authority, agreeing to pay a fine of £27million ($35.6 million) for breaching accounting rules inconnection with the Mozambique assets.
"The investment in 2011 of $4 billion in Mozambique in whatultimately turned out to be inferior quality coal assets wasundoubtedly a low point during my tenure," outgoing Chairman Jandu Plessis said on Friday in his final annual report with thecompany.