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Rio Tinto terminates two executives over bribery scandal

Debra ValentineRio Tinto, a mining and metals group, terminated the contracts of energy & minerals chief executive Alan Davies and legal & regulatory affairs group executive Debra Valentine.
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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. However, the board concluded that the executives failed to maintain the standards expected of them under our global code of conduct, The way we work.

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 United Kingdom, Australia and the United States 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.

Mr. Baatar was previously a member of the Rio Tinto Iron Ore executive committee, as Rio Tinto managing director Iron Ore Sales and Marketing and head of Rio Tinto’s Marine business, based in Singapore.

He was initially appointed to the role of managing director, Rio Tinto Marine in May 2014, with accountability for the Group's ocean freight business servicing global operations.

Mr. Baatar joined Rio Tinto in May 2013 as president of Copper International Operations, responsible for a diverse portfolio of greenfield and operating sites in South Africa, Australia, Indonesia, USA and Mongolia.

He served as an advisor to the Group from 2010 on its investments in the Oyu Tolgoi, copper and gold mine in Mongolia.

Mr. Baatar previously held executive leadership positions with a diversified investment management business and a local gold mining company in Mongolia.

Until 2009, he was an investment banker with JPMorgan for 11 years in New York and London focusing on private equity and leveraged buyout transactions, M&A and issuance of public equity and debt securities.

Mr. Baatar was the chairman of Mongolian Stock Exchange from 2010 to 2012, chairman of the Mongolian Mining Association from 2012 to 2014 and served as a non-executive director on the board of Southgobi Resources Ltd from 2013 to 2014.

He graduated from Mongolian Technical University with a Bachelor of Industrial Engineering. He also holds an MBA degree from the University Of Bridgeport in the United States.

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.

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