“Rio Tinto RIO.AU +2.71% Chief Executive Tom Albanese agreed to step down Thursday, the latest in a string of leaders toppled by shifting fortunes at the world’s biggest mining companies.
The New Jersey native ended his six-year tenure as the company said it would write off roughly $14 billion in the value of various assets—among the largest charges ever in an industry increasingly rocked by runaway costs.
Mr. Albanese, who was behind two large, ill-timed acquisitions at the world’s second-biggest mining company, took responsibility for the hit. “I fully recognize that accountability for all aspects of the business rests with the CEO,” said the 55-year-old engineer.
The bulk of the write-down, between $10 billion and $11 billion, relates to aluminum assets acquired in 2007 that have socked the Anglo-Australian company before. The remaining $3 billion is for Mozambique coal operations acquired only two years ago.
“A write-down of this scale in relation to the relatively recent Mozambique acquisition is unacceptable,” Chairman Jan du Plessis said. “We are also deeply disappointed to have to take a further substantial write-down in our aluminum businesses.” Rio Tinto’s shares fell 1.5% to close at 64.60 Australian dollars (US$68.29) in Sydney….”
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