Rio Tinto slapped with $750k fine

Just a small mention on an big story:

Rio Tinto has been slapped with a $750,000 fine.

The mining company has been ordered by the Federal Court to pay a penalty of $750,000 for contravening its continuous disclosure obligations.

The court found that between December 2012 and January 2013, Rio Tinto failed to disclose to the ASX that mining assets held by Rio Tinto Coal Mozambique were no longer economically viable as long-life, large-scale, tier-one coking coal resources.

“Rio Tinto had obligations to the market to keep it adequately informed about its mining projects overseas,” said ASIC deputy chair Sarah Court.

“When Rio Tinto was aware of information that Rio Tinto Coal Mozambique was no longer economically viable as a long-life, large-scale, Tier 1 coking coal resource, the market should have been properly informed in a timely manner,” Ms Court explained.

“The core of ASIC’s case against Rio Tinto was its continuous disclosure breach and we are pleased the matter has been finalised with a penalty ordered.”

The orders were made by consent after ASIC and Rio Tinto agreed to resolve the proceedings and filed joint penalty submissions. 

The court also ordered, with the consent of the parties, that ASIC’s claims against two former officers of Rio Tinto, Tom Albanese and Guy Elliott, be dismissed and with the parties bearing their own costs.

Source: www.investordaily.com.au