Rio Tinto Limited (ASX:RIO, LON:RIO) has announced $US14 billion of write downs and the resignation of its CEO Tom Albanese after almost six years at the helm. The global miner has elevated iron ore head Sam Walsh to the top spot effective immediately.
The impairment charges have been made on the company’s aluminium and coal businesses and amount to one of the biggest writedowns in Australian corporate history.
Rio will write down the value of its Mozambique coal assets by about $US3 billion, its aluminium assets by between $US10-11 billion and write down $US500 million on a number of smaller assets which will be included in the company’s annual results due for release February 14, 2013.
Rio’s chairman says the board believes the write down on its relatively recent Mozambique acquisition is unacceptable and is deeply disappointed to take another write down on its aluminium business.
Shares in Rio Tinto fell 1.45 per cent to close at $64.60 before the announcement was made yesterday.
Rio Tinto generated a net profit of almost $6 billion in the first half of the 2012 financial year.
