IRON ORE – GUINEA

Email trail led to Rio’s bribery investigation

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Original article by James Chessell
The Australian Financial Review – Page: 23 & 26 : 11-Nov-16

Francois de Combret has been named as the consultant who received a $US10.5m ($A13.7m) payment from Rio Tinto in connection with its Simandou iron ore project in Guinea. Rio Tinto executive Alan Davies has been suspended in the wake of revelations that the resources group is investigating the payment. It has also been revealed that former Rio Tinto CEOs Tom Albanese and Sam Walsh were involved in email discussions with Davies regarding the payment. Walsh was the head of the group’s iron ore division at the time.

CORPORATES
RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, UNITED STATES. SECURITIES AND EXCHANGE COMMISSION, UNITED STATES. DEPT OF JUSTICE, GREAT BRITAIN. SERIOUS FRAUD OFFICE, BSG RESOURCES LIMITED, INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES, LAZARD LLC, UBS AG, VEDANTA RESOURCES PLC

Rio Tinto’s Simandou dream evaporates

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Original article by Amanda Saunders
The Australian Financial Review – Page: 17 : 15-Feb-16

The Simandou iron ore project in Guinea has a book value of $US10bn on Rio Tinto’s accounts, although it is worth less than this given the current price of the steel input. Rio’s 2015-16 full-year results included a $US2bn writedown on the project, which is likely to cost about $US20bn ($A28bn) to develop. While Rio Tinto is scheduled to release a feasibility study on the project, some analysts do not expect Simandou to proceed for at least a decade.

CORPORATES
RIO TINTO LIMITED – ASX RIO, DEUTSCHE BANK AG, CREDIT SUISSE (AUSTRALIA) LIMITED, ARGO INVESTMENTS LIMITED – ASX ARG, STANDARD AND POOR’S CORPORATION, VALE SA, WORLD BANK, INTERNATIONAL FINANCE CORPORATION