Rio Tinto Suspends Unit CEO Alan Davies Amid Guinea Payments Investigation

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) on Wednesday announced that Energy & Minerals chief executive Alan Davies, who had accountability for the Simandou project in 2011, has been suspended with immediate effect.

In its statement, the company noted that on August 29 this year, the company became aware of email correspondence from 2011 relating to contractual payments totaling $10.5 million made to a consultant providing advisory services on the Simandou project in Guinea.

Following this, the company had launched an investigation into the matter led by external counsel.

Based on the investigation to date, Rio Tinto said it has today notified the relevant authorities in the United Kingdom and United States and is in the process of contacting the Australian authorities.

The company also announced that Legal & Regulatory Affairs group executive Debra Valentine has stepped down from her role. Previously, she had notified the company of her intention to retire on May 1, 2017.

Rio Tinto intends to co-operate fully with any kind of subsequent inquiries.

In Australia, shares were losing 2.08 percent to trade at A$53.65.