Rio boss on brink over Aboriginal mining row

THE future of the boss of Rio Tinto was hanging in the balance last night as the crisis over the destruction of two 46,000year-old Aboriginal cave shelters intensified.

The FTSE 100 mining giant’s board met overnight in Australia to determine whether chief executive JeanSebastien Jacques and other senior figures should be sacked.

Two of the most powerful independent directors, former Centrica boss Sam Laidlaw and ex-Royal Dutch Shell finance head Simon Henry, want tough action.

It follows outrage over a bungled response that saw Rio cut the bonuses of Jacques and two other executives – but let them keep their jobs.

The crisis has infuriated shareholders in the UK and Australia, where Rio has vast operations.

The Church of England pensions fund is the latest investor to speak out, declaring that the decision merely to cut bonuses was ‘not sufficient’.

Adam Matthews, director of ethics and engagement on the Church’s pensions board, said: ‘It’s very much a test for the board how serious their response is.

‘It’s clear that investors don’t feel that the measures they’ve outlined are sufficient.’

Rio destroyed the sites in the Juukan Gorge, Western Australia, in May as part of plans to expand an iron ore mine.

Archaeologists insisted the caves were of immense value, with one showing evidence it had been occupied for 46,000 years by the Puutu Kunti Kurrama and Pinikura (PKKP) people. The PKKP people said the destruction was ‘soul-destroying’.

The industry’s relationship with indigenous communities has been slammed by politicians including ex-prime minister Kevin Rudd, who said the firm would be known as ‘Rio TNT’.

He said: ‘Rio Tinto has blown up its own reputation as anything approximating a responsible corporate citizen in Australia.

‘The executives responsible for this decision should no longer be executives. For the company, I think their reputation now is mud.’ Indigenous leaders on the National Native Title Council have demanded a management ‘clean-out’. They said: ‘What led to the catastrophic destruction of Juukan Gorge was a result of the enormous cultural and values deficit within Rio Tinto. The decision to slash executive bonuses has been rightfully regarded as falling significantly short of anything approaching appropriate accountability.’

Rio had permission from the regional government to blow them up but following the outcry its heritage laws are being redrafted.

Jacques (pictured left) and two other executives – Chris Salisbury and Simone Niven – could be asked to stand down. After an internal investigation they have had their 2020 bonuses docked. In 2019 the equivalent bonus was about £4m.

Jacques, 48, has earned £17.2m since he took over as chief executive in 2016.

Laidlaw and Henry are said to be at loggerheads with other board members and are urging the chairman to take a hard line. Rio declined to comment.