Rio Tinto president Simon Thompson will step down in the latest twist after the destruction of indigenous caves

Rio Tinto president Simon Thompson will step down in the latest twist after the destruction of indigenous caves

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Thompson, who has chaired the company since 2018, told the Rio Tinto board that he will not seek re-election in 2022, according to the company.

“As president, I am responsible for the failures that led to this tragic event,” Thompson said in a statement. “The tragic events at Juukan Gorge are a source of personal sadness and deep regret, as well as being a clear violation of our values ​​as a company.”

Rio Tinto's new CEO promises to 'restore confidence' after the destruction of the indigenous sacred site

Thompson’s announcement comes almost a year after Rio Tinto, the world’s second largest mining company, blew up the caves at Juukan Gorge in western Australia to expand an iron ore mine.

The local guardians of the land, the Puutu Kunti Kurrama and Pinikura peoples, fought for years to protect the caves and their destruction was met with indignation. The caves had significant archaeological value and profound cultural significance for Aboriginal people.

Rio Tinto apologized for the demolition in June and cut bonuses for its former CEO Jean-Sébastien Jacques and two other senior executives. But he did not immediately fire any executive, which sparked much criticism.
Months later and under pressure from investors, Jacques was forced to resign. He was replaced by chief financial officer Jakob Stausholm earlier this year. (Rio Tinto recently revealed, however, that Jacques still received about $ 18.6 million in wages and long-term incentive rewards in 2020, despite his resignation.)

Two other executives – Chris Salisbury, head of the iron ore business, and Simone Niven, executive of the group for corporate relations – also left the company after the incident.

Thompson said in his statement on Wednesday that the company has engaged with investors, government and indigenous communities to learn from the demolition of the caves.

It also took steps to “address the weakness” in its risk management and governance, including the appointment of Stausholm, who Thompson said “acted quickly to appoint his new executive team and identified his top priorities for rebuilding the trust we lost.”

The board said it accepted Thompson’s decision and will seek a successor.

Actions in Rio Tinto (RIVER) rose 1.8% in Sydney on Wednesday.

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