Rio Tinto resolves legacy U.S. Securities and Exchange Commission FCPA investigation

Rhea-AI Summary

Rio Tinto has settled a U.S. Securities and Exchange Commission (SEC) investigation, agreeing to pay a $15 million penalty over violations related to the Foreign Corrupt Practices Act (FCPA). The investigation concerned payments made to a former consultant for the Simandou project in Guinea in 2011. While the company does not admit to any wrongdoing, CEO Dominic Barton emphasized the company’s commitment to integrity and enhancing compliance programs. This resolution allows Rio Tinto to move forward and focus on its operations without ongoing legal distractions.

Positive

• Resolved SEC investigation allows Rio Tinto to refocus on operations.
• Proactive internal investigation indicates improved compliance culture.

Negative

• Payment of $15 million civil penalty reflects past governance issues.
• Ongoing scrutiny may impact investor confidence.

LONDON--(BUSINESS WIRE)-- Rio Tinto has today resolved a previously self-disclosed investigation by the U.S. Securities and Exchange Commission (SEC) into certain contractual payments made to a former consultant over a decade ago in 2011, relating to the Simandou project in the Republic of Guinea.

Without admitting to or denying the SEC’s findings, Rio Tinto has agreed to pay a $15 million civil penalty for violations of the books and records and internal controls provisions of the Foreign Corrupt Practices Act (FCPA).

In connection with the settlement, Dominic Barton, Chairman of Rio Tinto said: “We are glad to have resolved this matter related to events that occurred over a decade ago on appropriate and reasonable terms. When Rio became aware of the issue, an internal investigation was immediately launched, and we proactively notified the appropriate authorities.

“Since becoming aware, Rio Tinto has taken significant actions to enhance our compliance programme based on best practices. Under current leadership we are taking action to build a culture guided by our values of care, courage and curiosity; an environment where every team member feels comfortable to speak up if something is not right. We remain committed to conducting business to the highest standards of integrity, and ensuring that our projects benefit communities, host governments, shareholders, and customers.”

This announcement is authorised for release to the market by Steve Allen, Rio Tinto’s Group Company Secretary.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230303005327/en/

Please direct all enquiries to media.enquiries@riotinto.com

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Rio Tinto plc

6 St James’s Square

London SW1Y 4AD

United Kingdom

T +44 20 7781 2000

Registered in England

No. 719885

Rio Tinto Limited

Level 43, 120 Collins Street

Melbourne 3000

Australia

T +61 3 9283 3333

Registered in Australia

ABN 96 004 458 404

riotinto.com

Source: Rio Tinto

FAQ

What did Rio Tinto settle with the SEC?

Rio Tinto agreed to pay a $15 million penalty for violations related to the Foreign Corrupt Practices Act concerning payments to a former consultant.

What was the basis of the SEC investigation into Rio Tinto?

The SEC investigated Rio Tinto for certain contractual payments made in 2011 concerning the Simandou project in Guinea.

How does Rio Tinto's settlement affect its business operations?

The settlement allows Rio Tinto to move forward without the distraction of ongoing legal issues, enabling a focus on its operations.

What is the impact of the $15 million penalty on Rio Tinto's financials?

The $15 million civil penalty represents a financial impact but reflects a resolution to past compliance issues.