HomeBase MetalsRio Tinto terminates Davies' contract

Rio Tinto terminates Davies’ contract

This is after concluding that the executives failed to maintain the standards of Rio Tinto’s global code of conduct.

The terminations follow Rio Tinto’s review of an internal investigation into 2011 contractual arrangements with a consultant who provided advisory services on the Simandou project in Guinea.

Rio Tinto said its board decision does not pre-judge the course of any external inquiries into the matter. Rio Tinto has contacted the regulatory authorities in the United Kingdom, Australia and the United States about the matter and intends to fully co-operate with any subsequent inquiries.

Alan Davies is being replaced by Bold Baatar, who will join the executive committee as Energy and Minerals Chief Executive. Bold held a number of senior investment banking roles with JP Morgan before taking on chief executive positions with a gold mining company and a diversified investment management business in Mongolia.

He joined Rio Tinto in 2013 as Copper International Operations president and is the Managing Director of Marine and Vice President of Iron Ore Sales and Marketing.

Rio Tinto chief executive J-S Jacques said: “Appointing Bold to run our Energy & Minerals business will add a fresh perspective to the product group. Bold brings broad international and executive experience in a wide range of commercial disciplines. He has a proven track record and will be a great addition to our Exco, particularly due to his strong strategic approach and acute understanding of Asia.”

Chief financial officer Chris Lynch has temporarily assumed accountability for the corporate Legal & Regulatory Affairs function, while the recruitment process for a new chief legal counsel has started.