Rio Tinto alerts UK, U.S. watchdogs to payments in Guinea

MELBOURNE, Nov 9 (Reuters) - Global miner Rio Tinto (LSE: RIO.L - news) said on Wednesday it had alerted U.S. and UK authorities to $10.5 million in payments made to a consultant on its Simandou iron ore project in Guinea and has suspended two senior executives as a result.

Rio Tinto said it had become aware of emails from 2011 "relating to contractual payments totalling $10.5 million made to a consultant providing advisory services on the Simandou project in Guinea."

The company has suspended the head of its energy and minerals division, Alan Davies, who was in charge of Simandou in 2011. The group's legal and regulatory affairs executive Debra Valentine, who was due to retire next May, has also stepped down.

"Rio Tinto intends to co-operate fully with any subsequent inquiries from all of the relevant authorities. Further comment at this time is therefore not appropriate," the company said in a statement to the Australian stock exchange. (Reporting by Sonali Paul; Editing by Andrew Hay)