The U.S. Securities and Exchange Commission has charged mining company Rio Tinto and two of its former top executives with fraud, saying they inflated the value of coal assets in Mozambique. Laura Frykberg reports
A mining giant under fire. Rio Tinto and two of its former top executives charged with fraud by US authorities. For allegedly inflating the value of its coal assets in Mozambique. The U.S. Securities and Exchange Commission... Says Rio Tinto, former CEO Thomas Albanese and former CFO Guy Elliott... Failed to accurately value and record its Mozambique assets. Which were acquired for $3.7 billion in 2011... and sold a few years later for $50 million. The commission says that soon after Rio Tinto bought the assets. It discovered they'd produce less and lower quality coal than expected. But it allegedly made misleading public statements about them anyway... to raise money for the sale. The mining giant has already paid a £27 million fine to UK authorities for breaching accounting rules.. in connection with the same Mozambique assets. But Rio Tinto and the former executives say they will vigorously defend themselves against the accusations.