Rio Tinto to pay $28m to settle SEC suit over Mozambique writedown

(Sharecast News) - Rio Tinto said on Wednesday that it has agreed to pay the US Securities and Exchange Commission $28m to settle a 2017 lawsuit related to the disclosure of the impairment of Rio Tinto Coal Mozambique (RTCM) in its 2012 year-end accounts.

The miner will pay the penalty without admitting to or denying the SEC's allegations related to its books, records and reporting requirements, and will retain an independent consultant to advise on its current policies, procedures, and controls related to impairment, disclosures and project risk.

Rio also said that former chief executive Tom Albanese has reached a settlement with the SEC and will pay a $50,000 penalty, also without admitting to or denying the allegations.

"Rio Tinto welcomes closure of the SEC case on appropriate and reasonable terms," it said. "With this settlement, all investigations of Rio Tinto regarding this matter have been finalised."

Rio Tinto bought RTCM in 2011 and sold it off it in 2014. In 2013, it announced a $14bn impairment, which included a $3bn impairment relating to RTCM.