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Rio Tinto Faces U.S. Fraud Charges on Coal Calamity

The mining company's former CEO and CFO were also charged.

By David Stringer, Bloomberg | Updated on October 18, 2017

Rio Tinto Group’s calamitous $3.7 billion coal deal in Mozambique, involving a plan to barge the fuel hundreds of kilometers down the Zambezi River, keeps coming back to haunt the world’s second-biggest miner—already grappling with another African misadventure.

U.S. authorities filed fraud charges against London-based Rio, former CEO Tom Albanese and ex-CFO Guy Elliott, claiming they inflated the value of the coal assets acquired in 2011. The unit was sold for $50 million in 2014 following impairments of about $2.9 billion in 2013 and $470 million a year later.

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