Rio Tinto chair to leave over mishandling of Australia heritage sites

Rio Tinto Group chair Simon Thompson will not seek reelection at the miner’s annual meeting in 2022, saying that he is accountable for the failings that led to the destruction of an ancient Aboriginal site in Australia in 2020.

The fallout from Rio’s actions at Juukan Gorge in Western Australia last May has already led to the departure of former CEO Jean-Sébastien Jacques and other senior executives, while Thompson himself had come under pressure from investors to step down.

“While I am pleased with the progress we have made in many areas, the tragic events at Juukan Gorge are a source of personal sadness and deep regret, as well as being a clear breach of our values as a company,” Thompson said. “As chair, I am ultimately accountable for the failings that led to this tragic event.”

New CEO Jakob Stausholm, who shuffled his senior management ranks last month, says he wants to re-establish the company as a trusted partner for host communities.

“The decision today allows for a fresh perspective and a renewed board focus on repairing and building stronger links with indigenous communities in the countries in which Rio operates,” said Debby Blakey, CEO of $37bn pension fund Hesta.

In December, AustralianSuper, the largest pension fund in the nation where Rio generates the bulk of its profits, called for “changes of personnel” on the board after its response to the Juukan Gorge incident.

In August, Thompson initially backed Jacques and other leaders, saying they were the right executives to lead Rio’s effort to rebuild relations with Aboriginal Australian communities, only to reverse course under pressure from investors. After a decision to replace the executives, Thompson said in September he believed he should remain in the post to guide the tasks of appointing a new leader and overhauling procedures.

Juukan Gorge had exposed Rio’s “blindness” on heritage protection, said Joe Dortch, a spokesperson for the Australian Association of Consulting Archaeologists. “Across the company there’s a recognition that there was blindness,” he said, adding that Rio is showing a readiness to communicate better and be more open in its dealings with indigenous landowners.