- Agreement reached over 2020 destruction of rock shelters
- Financial support to be provided to new foundation
- Part of rehabilitation of company's ESG credentials
Mining outfit Rio Tinto (RIO) may have been lower this morning as investors fretted about the impact of Chinese Covid protests on commodities demand but the company took another important step in its rehabilitation with a key agreement in Australia.
The company is creating the Juukan Gorge Legacy Foundation as part of its efforts to make amends for destroying two ancient rock shelters at Juukan Gorge in Western Australia in 2020.
Under an agreement with Puutu Kunti Kurrama and Pinikura Aboriginal Corp., Rio will provide unspecified financial support to the foundation to progress social and cultural projects including a new place to store important cultural artefacts.
Rio Tinto CEO Jakob Stausholm said: ‘We fell far short of our values as a company and breached the trust placed in us by the PKKP people by allowing the destruction of the Juukan Gorge rock shelters. As we work hard to rebuild our relationship, I would like to thank the PKKP people, their elders, and the corporation for their guidance and leadership in forming this important agreement.’
WHAT HAPPENED BACK IN 2020?
In May 2020, Rio blasted the rock shelters in the remote Pilbara region to expand its iron ore mine - thereby destroying one of the earliest known sites for Australia’s indigenous population.
The fall-out cost Stausholm’s predecessor Jean-Sebastien Jacques his job. Stausholm has made fixing several ESG problems at the company a key part of his strategy - with a bombshell report into its working practices released in February this year.
Shares in Rio were 0.8% lower at £53.66 this morning. AJ Bell investment director Russ Mould commented: ‘Mining firm Rio Tinto has put a difficult episode from its recent past behind it by reaching an agreement with traditional landowners in Western Australia over its destruction of sacred rock shelters at the Juukan Gorge two years ago.
‘This was one of a litany of ESG failings under the company’s previous management. Current CEO Jakob Stausholm may as well wear marigolds to every meeting as cleaning up messes seems to have been a key part of his role so far, and this latest move fits with the new approach.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Tom Sieber) and the editor (Ian Conway) own shares in AJ Bell.
