Rio Tinto shares fall as boss resigns

<p>Shares in Rio Tinto have slumped as the company’s chief executive steps down.</p>

Shares in Rio Tinto on the London Stock Exchange have fallen today (January 17th), as the chief executive of the mining giant steps down.

Tom Albanese has resigned by mutual agreement with the board after the company announced a $14 billion (£8.7 billion) write-down. He is being replaced by Sam Walsh, chief executive of the miner's iron ore business.

Chairman Jan du Plessis said the scale of the write-down was "unacceptable", with some $3 billion of the total sum relating to Rio Tinto's coal mining facilities in Mozambique, which only began shipping the fuel in June 2012.

"We are also deeply disappointed to have to take a further substantial write-down in our aluminium businesses, albeit in an industry that continues to experience significant adverse changes globally," Mr du Plessis commented.

At 11:50 GMT, shares in Rio Tinto fell by 1.4 per cent to 3410.00p per unit, while the FTSE 100 dropped to 6100.3 points.

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