Rio Tinto investigated by the FCA over claims it misled the market – CityAM : CityAM

Rio Tinto is reportedly being investigated by the UK’s financial watchdog over claims that it misled the market about a £5bn copper mine in Mongolia.

Rio allegedly knew the Oyu Tolgoi mine was running behind schedule and over-budget long before investors were informed, the Daily Mail first reported. The mining giant tried to raise £1.3bn to complete the project back in 2019 blaming burgeoning costs on technical issues.

However, whistle-blowers claim the majority of cost overruns were down to poor project management.

Regulators worldwide are joining the investigation into allegations of botched management at the mine. The Mongolian government has launched an independent review and the US Securities and Exchange Commission is also gearing up for an investigation, The Daily Mail reported.

The news comes after Rio Tinto was slapped with a £186.36m fine from Australian authorities which company has said it “will dispute.”

The fine, dished out by the Australian Taxation Office, was for denying interest deductions on an isolated borrowing that was used to pay an internal dividend back in 2015. While the borrowing was repaid, Rio Tinto has also been requested to pay around £14.2m as part of an interest assessment, which the authorities reduced by around £10m.

The FCA declined to comment while Rio Tinto has not responded to City A.M.’s request for a statement.

Despite the news Rio Tinto’s share price is up by 1.15 per cent today and stands at $100.47AUD.

Read more: Rio Tinto ‘will dispute’ £190m fine from Australian tax watchdog