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Rio, ex-CEO face fraud charges on USD 3.7 billion coal calamity

Rio Tinto along with two former CEOs have been charged with fraud connected to a failed coal investment worth billions in Mozambique.

Photo: PR-foto/Rio Tinto

Rio Tinto Group's calamitous USD 3.7 billion coal deal in Mozambique, involving a plan to barge the fuel hundreds of kilometers down the Zambezi River, keeps coming back to haunt the world's second-biggest miner -- already grappling with another African misadventure.

US authorities filed fraud charges against London-based Rio, former Chief Executive Officer Tom Albanese and ex-Chief Financial Officer Guy Elliott, claiming they inflated the value of the coal assets acquired in 2011. The unit was sold for USD 50 million in 2014 following impairments of about USD 2.9 billion in 2013 and USD 470 million a year later.

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