GLOBAL MARKETS: Rio Tinto hauled over the coals
Rio Tinto hauled over the coals
Australia’s corporate watchdog has launched court action against miner Rio Tinto and two former executives for misleading investors about the coal reserves it reported in a US$4bn acquisition in Mozambique. The Australian securities & investments commission says the company, its former CEO Tom Albanese and former CFO Guy Elliott made deceptive statements in their 2011 annual report related to the company’s disastrous acquisition of Riversdale in Mozambique.
Rio Tinto has denied any wrongdoing in a similar case brought by the US securities & exchange commission, which has charged the company, Albanese and Elliott with fraud.
Nippon steeled for $16bn capex spend
Nippon Steel & Sumitomo Metal Corp, Japan’s biggest steel maker, plans to earmark ¥1.7trillion (US$16bn) for domestic capital spending over the next three years to upgrade and reinforce ageing plants. That compares with the ¥1.26trillion spent over the past three years, the company said in outlining its new business plan.