August 22, 2017

The Securities Exchange Commission probing Rio’s Mozambique coal deal

The Guinea bribery case seems have opened a can of worms for the world’s second biggest miner, Rio Tinto, as the company’s dealings in Mozambique are a subject of an investigation by the US Securities and Exchange Commission (SEC).

The SEC finds the massive write down booked by Rio Tinto on a coal deal in Mozambique suspicious, according to newswire, Bloomberg.

Rio Tinto, the Melbourne headquartered miner,  bought Benga Mine and other projects and other coal projects in Mozambique’s Tete Province in 2011 for $3.7 billion. After taking an asset impairment charge of $3 billion on the coking venture, citing challenges in building the necessary infrastructure to bring the project on stream in 2013, Rio them sold the assets to an Indian firm for a “paltry” R50 million.

 

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