Rio Tinto, the mining company, has revealed that it expects to recognise a post tax "non-cash impairment charge" of approximately $14 billion (£8.75 billion/€10.5 billion) in its 2012 full-year results next month.

It said the impairments include some $3 billion (£1.8 billion/€2.2 billion) relating to Rio Tinto Coal Mozambique, as well as $10-11 billion (£6.3-6.9 billion/€7.5-8.2 billion) in reductions in the carrying values of its aluminium assets.

The company also announced that chief executive Tom Albanese had stepped down by mutual agreement with the board and been succeeded by iron ore chief executive Sam Walsh.

Last October, figures revealed in the UK Government's final quarterly economic report on the Games forecast the entire cost at £8.92 billion ($14.2 billion/€10.7 billion).


Rio Tinto was unveiled in April 2011 as official mining and metals provider to London 2012.

In this capacity it provided all the gold, silver and copper to produce the 4,700 Olympic and Paralympic medals.

The metal came from a copper mine in Salt Lake City, a former Winter Olympic Games host, and the Oyu Tolgoi mine in Mongolia.

Rio Tinto chairman Jan du Plessis said: "The Rio Tinto board fully acknowledges that a write-down of this scale in relation to the relatively recent Mozambique acquisition is unacceptable.

"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."

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