17th Nov 2016 06:29
LONDON (Alliance News) - Anglo-Australian miner Rio Tinto PLC on Thursday said that it has terminated the contracts of Energy & Minerals division chief executive Alan Davies and Legal & Regulatory Affairs Group executive Debra Valentine.
The Rio Tinto board reviewed the findings to date of an internal investigation into 2011 contractual arrangements with a consultant who provided advisory services on the Simandou project in Guinea.
The board's decision does not pre-judge the course of any external inquiries into this matter, it said. However, the board concluded that the executives failed to maintain the standards expected of them under the company's global code of conduct. In the circumstances, the board terminated the contracts of both executives.
In accordance with contract termination, neither executive will be eligible for any short-term incentive plan awards for 2016. Rio Tinto will also cancel all unvested incentive plan awards from previous years. As previously announced, Rio Tinto contacted the regulatory authorities in the UK, Australia and the US about the matter and intends to fully cooperate with any subsequent inquiries. Further comment at this time is therefore not appropriate.
Alan Davies will be replaced by Bold Baatar, who will join the Executive Committee as Energy & Minerals chief executive.
The Chief financial officer Chris Lynch has temporarily assumed accountability for the corporate Legal & Regulatory Affairs function. The recruitment process for a new chief legal counsel has commenced.
Copyright RTT News/dpa-AFX
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