Rio Tinto Terminates Executives Over Simandou Investigation
November 16 2016 - 6:10PM
Dow Jones News
SYDNEY—Rio Tinto PLC said it has terminated the contracts of
energy and minerals chief executive Alan Davies and legal and
regulatory affairs group executive Debra Valentine over an internal
investigation into 2011 contractual arrangements with a consultant
who provided advisory services on the Simandou project in
Guinea.
The Anglo-Australian mining company said that its decision "does
not prejudge the course of any external inquiries into this
matter." But it said the executives "failed to maintain the
standards expected of them" under the company's global code of
conduct.
Mr. Davies, who was responsible for the Simandou project at the
time, had already been suspended, while Ms. Valentine—who had
previously told the company she intended to leave in May next
year—had stepped down.
Rio Tinto has previously said it was contacting authorities in
the U.K., U.S. and Australia over emails linked to payments worth
$10.5 million to a consultant on the Simandou project in Guinea and
intends to fully cooperate with any subsequent inquiries.
"Further comment at this time is therefore not appropriate," the
company said.
Mr. Davies and Ms. Valentine couldn't be reached for
comment.
Mr. Davies will be replaced by Bold Baatar, who held a number of
senior investment banking roles with J.P. Morgan before taking on
chief executive positions with a gold mining company and a
diversified investment management business in Mongolia. He joined
Rio Tinto in 2013 as Copper International Operations president and
is the managing director of Marine and vice president Iron Ore
Sales and Marketing.
Chief Financial Officer Chris Lynch has temporarily assumed
accountability for the corporate Legal & Regulatory Affairs
function. The recruitment process for a new chief legal counsel has
begun.
Write to Rachel Pannett at rachel.pannett@wsj.com
(END) Dow Jones Newswires
November 16, 2016 17:55 ET (22:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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