The West

Sacked Rio Tinto chief executive Tom Albanese.
Sacked Rio Tinto chief executive Tom Albanese.

Rio Tinto shares have jumped nearly 2 per cent following the shock resignation of chief executive Tom Albanese after the miner was forced to make $US14 billion worth of writedowns.

Rio stunned investors after the market closed yesterday with news that Mr Albanese had stepped down as the global miner announced hefty writedowns of its aluminium and coal assets.

The company has promoted its Perth-based iron ore chief Sam Walsh to the top job.

Shares in Rio Tinto leapt by $1.13, or 1.75 per cent, to $65.73 at 7.25am after hitting an earlier peak of $65.88.

The dual-listed stock had initially dived four per cent during trading on the London Stock Exchange overnight amid shock at Mr Albanese's sudden departure.

However, it later recovered to close half a per cent lower at STG34.39.

Rio said it would write down the value of its aluminium assets, including Alcan Pacific Aluminium, by between $US10 billion and $US11 billion ($A9.53 billion and $A10.48 billion).

It will also take a $US3 billion ($A2.86 billion) hit relating to Rio Tinto Coal Mozambique, which it acquired during its takeover of Riversdale Mining.

Along with Mr Albanese, senior executive Doug Ritchie, who led the acquisition and integration of the Mozambique coal assets, has also resigned.

More to come…

The West Australian

Latest News From The West

Hong Kong-based Gaw Capital Partners has paid about $35 million for Telstra’s ageing Stirling Street headquarters with plans to convert it into student accommodation for more than 500 students.

One of the most senior Rebels bikies in Perth is facing the prospect of prison for high-level drug dealing after being caught in a police sting similar to the one that captured Daniel Morcombe’s …

Popular videos