Rio Tinto CEO steps down as group admits incurred 14bn dollars in imparirments

Tom Albanese has stepped down as Chief Executive Officer of Rio Tinto and has been succeeded by Sam Walsh following an announcement by the company that it expects to recognise a non-cash impairment charge of approximately 14bn dollars in its 2012 full year results.

Tom Albanese has stepped down as Chief Executive Officer of Rio Tinto and has been succeeded by Sam Walsh following an announcement by the company that it expects to recognise a non-cash impairment charge of approximately 14bn dollars in its 2012 full year results.

The impairments include an amount of approximately $3bn relating to Rio Tinto Coal Mozambique as well as reductions in the carrying value of Rio Tinto's aluminium assets in the range of $10-11bn.

The group further stated that it expects to report a number of smaller asset write-downs in the order of $500m.

In addition to Albanese's resignation, Doug Ritchie, who led the acquisition and integration of Mozambique coal assets in his previous role as energy Chief Executive, has also stepped down by mutual agreement.

Rio Tinto Chairman Jan du Plessis said: "The Rio Tinto Board fully acknowledges that a write-down of this scale in relation to the relatively recent Mozambique acquisition is unacceptable. We are also deeply disappointed to have to take a further substantial write-down in our aluminium businesses, albeit in an industry that continues to experience significant adverse changes globally."

He praised both outgoing staff members' contribution to the company over their tenures, saying: "I would like to pay tribute to Tom for his considerable contribution to Rio Tinto over more than 30 years of service and for his integrity and dedication to the company. I would also like to thank Doug for his 27 years of service to the Group and particularly for his invaluable work in developing our relationships in China. I wish them both well for the future."

MF

Recommended

Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022

Most Popular

How to find the best dividend stocks
Income investing

How to find the best dividend stocks

Stocks that pay dividends tend to outperform the market over the long run - as well as providing an income. Here, Rupert Hargreaves explains the best …
28 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022