LONDON--(BUSINESS WIRE)--Rio Tinto has reached a court approved settlement with the Securities and Exchange Commission (SEC) of a suit brought in 2017 concerning disclosure of the impairment of Rio Tinto Coal Mozambique (RTCM) reflected in Rio Tinto’s 2012 year-end accounts.
Without admitting to or denying the SEC’s allegations related to its books, records and reporting requirements, Rio Tinto will pay a US$28 million penalty and retain an independent consultant to advise on its current policies, procedures, and controls related to impairment, disclosures and project risk.
Former chief executive Tom Albanese has also reached a settlement with the SEC and will pay a US$50,000 penalty, without admitting to or denying the allegations related to books and records and internal controls.
Rio Tinto welcomes closure of the SEC case on appropriate and reasonable terms.
With this settlement, all investigations of Rio Tinto regarding this matter have been finalised. Rio Tinto settled claims brought by the Australian Securities and Investment Commission in 2022 and the United Kingdom's Financial Conduct Authority in 2017 relating to the same RTCM impairment. The U.S. Court who approved the SEC settlement previously dismissed a related private putative securities class action in 2019. An appeals court affirmed the dismissal.
RTCM was acquired in 2011 and divested in 2014.
This announcement is authorised for release to the market by Andy Hodges, Rio Tinto’s Group Company Secretary.