Settlement with the Australian Securities and Investment Commission

Rhea-AI Summary

Rio Tinto has settled with the Australian Securities and Investment Commission (ASIC) over the disclosure of a coal impairment in its 2012 accounts, paying a penalty of A$750,000. The settlement, which involved no fraud findings, closes the ASIC case. However, Rio Tinto is still defending against ongoing proceedings from the SEC. The Rio Tinto Coal Mozambique (RTCM) was acquired in 2011 and divested in 2014, and similar cases were previously settled with the UK Financial Conduct Authority in 2017 and dismissed by a US court.

Positive

• Closure of the ASIC case provides legal certainty.
• No findings of fraud or systemic issues were reported.

Negative

• Ongoing SEC proceedings remain a concern.

MELBOURNE, Australia--(BUSINESS WIRE)-- Rio Tinto has reached a settlement with the Australian Securities and Investment Commission (ASIC) regarding the disclosure of the impairment of Rio Tinto Coal Mozambique (RTCM), which was reflected in Rio Tinto’s 2012 year-end accounts.

As part of this court approved settlement, Rio Tinto will pay a A$750,000 penalty for a single contravention of its continuous disclosure obligations in the period 21 December 2012 to 17 January 2013, immediately preceding the impairment announcement. As part of this court approved settlement between ASIC and Rio Tinto, there were no findings of fraud or any systemic or widespread failure by Rio Tinto.

The case against Tom Albanese and Guy Elliott has been wholly dismissed.

Rio Tinto settled with the United Kingdom's Financial Conduct Authority (FCA) in 2017 relating to the same RTCM impairment. A US court also dismissed a related US securities class action.

Rio Tinto welcomes closure of the ASIC case on appropriate and reasonable terms. The resolution of this matter, however, does not impact the Securities and Exchange Commission’s proceedings. Rio Tinto will continue to defend itself vigorously against the SEC’s allegations.

RTCM was acquired in 2011 and divested in 2014.

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

riotinto.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220306005054/en/

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

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Source: Rio Tinto

FAQ

What penalty did Rio Tinto pay to ASIC regarding the RTCM impairment?

Rio Tinto paid a penalty of A$750,000 to ASIC for disclosing the impairment.

What does the ASIC settlement mean for Rio Tinto's shareholders?

The ASIC settlement provides closure on this legal matter, but ongoing SEC proceedings may still pose risks.

What legal issues is Rio Tinto currently facing?

Rio Tinto is defending itself against ongoing allegations from the SEC related to the RTCM impairment.

When was the RTCM coal asset acquired and sold by Rio Tinto?

Rio Tinto acquired RTCM in 2011 and divested it in 2014.

What previous settlements has Rio Tinto made related to the RTCM impairment?

Rio Tinto previously settled with the UK Financial Conduct Authority in 2017 regarding the same impairment.