Chief Executive Tom Albanese stepped down Thursday after the Anglo-Australian mining company said it would book a US$14 billion impairment charge against the value of its troubled aluminum division as well coal assets in Mozambique.
Sam Walsh, head of Rio Tinto's key iron ore business and its Australian
operations, was appointed Mr. Albanese's successor effective
immediately, the company said in a statement.
The surprise move adds to the troubles Rio Tinto has endured since its
ill-timed US$38 billion acquisition of Canadian aluminum company Alcan
Inc. at the top of the market in 2007. Mr. Albanese and Chief Financial
Officer Guy Elliott last February elected to forego their annual bonuses
after the company reported a 59% drop in profit for 2011, dented by
another US$8.9 billion writedown against the assets. The company already
is searching for a replacement for Mr. Elliott, who plans to return by
the end of the year.
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