By Rhiannon Hoyle
SYDNEY--Australia's securities regulator said it has begun legal proceedings against Rio Tinto Ltd. (RIO.AU) and two former executives, alleging investors were misled about coal assets in Mozambique.
The Australian Securities and Investments Commission said proceedings began in the Federal Court in Sydney against the company, former Chief Executive Tom Albanese and former Chief Financial Officer Guy Elliott over statements in mining company's 2011 annual report. The regulator alleges Rio Tinto misrepresented the reserves and resources of an acquired coal business.
ASIC said it is requesting Mr. Albanese and Mr. Elliott be disqualified from managing corporations for an unspecified period.
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