Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) has reached a settlement with the US Securities and Exchange Commission (SEC) over a 2017 lawsuit related to the impairment of Rio Tinto Coal Mozambique (RTCM) in its 2012 accounts.
The London-listed Australian mining big cap will pay a $28 million penalty and engage an independent consultant for advice on impairment disclosures and risk management, without admitting or denying the SEC's allegations.
Former chief executive Tom Albanese agreed to a $50,000 penalty, also without admitting or denying the allegations.
Rio Tinto expressed satisfaction with the resolution of the case, calling the terms “appropriate and reasonable”.
This settlement concludes all investigations into Rio Tinto regarding the RTCM matter.
Rio Tinto previously settled related claims with the Australian Securities and Investment Commission in 2022 and the UK's Financial Conduct Authority (FCA) in 2017.
A US Court dismissed a related private securities class action in 2019, a decision later upheld by an appeals court.
Rio Tinto acquired RTCM in 2011 and divested it in 2014.
The SEC's investigation focused on a $3 billion impairment charge Rio Tinto recorded nearly four years after the Mozambique coal deal, which was part of a larger $14 billion in asset write-downs that led to Tom Albanese's departure as chief executive.
Following these writedowns, the SEC accused Rio Tinto of inflating the value of its Mozambique coal assets in order to tap the public equity markets.