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Category: Mining Industry / Management / Regulation / Fraud and Corporate Crime

Rio executive suspended amid African payments investigation

Wednesday, 9 Nov 2016 07:17:33 | Elysse Morgan

Simandou is described as one of the world's largest untapped iron ore resources. (ABC News: Kathryn Diss)

Senior heads have rolled at mining giant Rio Tinto after an investigation found $US10.5 million was paid to a consultant providing "advisory services" on a project in the African nation of Guinea.

Rio Tinto says it used external counsel to investigate the matter which has uncovered information that warrants it alerting authorities in United Kingdom, United States and it is "in the process" of contacting Australian authorities.

The company said it has suspended a senior executive who had responsibility for the Simandou project in 2011.

Rio Tinto said another staff member in its legal and regulatory affairs unit has elected to bring forward their retirement from the firm by six months.

The ABC is seeking comment from both staff members, however Rio Tinto responded it would not facilitate contact.

Simandou, according to Rio Tinto, is one of the world's largest untapped high-grade iron ore resources in the world, which has an expected mine life of 40 years and could be a significant export earner for Guinea.

Just last month, Rio Tinto agreed to sell its stake in Simandou to Chinese mining giant Chinalco, which will net up to $US1.3 billion.

More to come.

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