Rio Tinto legally blew up ancient caves, and now the chief executive has left – here’s why


Rio Tinto, the world’s second-largest mineral and mining company, said on Friday that its CEO Jean-Sebastian Jacques “stepped back” by mutual agreement when the company blew up its old rock shelters, months after that. Stakeholders remained under pressure. Western Australia. Two other senior executives will also leave the company.

• Rio Tinto Rio,
+ 3.20%
An ancient habitat exploded in Juan Gorge in May with traces of life of 46,000 years. This was done legally, but against fierce opposition from traditional tribal owners. The explosion gave the company access to $ 135 million worth of high-grade iron ore.

• The board’s original response, which found in an earlier review that there were no personal mistakes and recommended cuts in the short-term bonuses of only a few officials, created uproar among active shareholders, tribal people and environmental organizations Was.

• France-born Jacques, who became chief executive in 2016, will remain until a successor is found, but no later than the end of March 2021.

• Rio Tinto shares were up 1.8% in afternoon trade, against a stable London market measured by the FTSE 100 UKX
+ 0.27%
Index.

the vision: Jax’s departure reflects the increasing power of activists or demand for pension funds that companies adhere to cultural, social and environmental standards, and begin to look beyond their strict line. Large mining groups, often operating in every region of the world on land owned by indigenous people, are a natural target for such activism. Rio Tinto’s delayed response could mean the board’s demand is overcome by problems with shareholders.

    .