Rio Tinto鈥檚 (ASX, LON, NYSE: RIO) chairman Simon Thompson the latest high-profile executive to announce his departure amid backlash for the company鈥檚 destruction of two 46,000-year-old rock sacred shelters in Western Australia last year.
Thompson, a former geologist and investment banker, said he will not seek re-election as a director at the 2022 annual general meetings, as he was 鈥渦ltimately accountable鈥澛爁or the blasting at Juukan Gorge to expand an iron ore mine.
He also regretted the fact that the destruction had 鈥渙vershadowed鈥� the company鈥檚 successes in 2020 鈥� during which it paid a record dividend to investors as a result of booming iron ore prices.
Non-executive director Michael L鈥橢strange, who led the review into Rio鈥檚 handling of the incident, will retire in May. The company said he needed to reduce his workload after 鈥渟ignificant surgery.鈥�
L鈥橢strange鈥檚 internal examination of the caves disaster was later criticized by Australian politicians, including Senator Pat Dodson, who call it an 鈥渦nsatisfactory piece of work鈥�聽that was 鈥渇ull of mea culpas and corporate lingo.鈥�
The review concluded in August that there was 鈥渘o single root cause or error that directly resulted in the destruction of the rock shelters.鈥�
But internal documents revealed in September that Rio Tinto had engaged a law firm before the blasting, in case the traditional owners applied for a court injunction to save the rock shelters.
Heads roll
In addition to Thompson and L鈥橢strange, former chief executive Jean-S茅bastien Jacques is due to leave the company at the end of March. He has been replaced by Jakob Stausholm, who was chief financial officer.
Rio initially penalized Jacques by cutting his short-term bonuses, amounting to almost $5 million (拢3.7m).
Last month, however, the company revealed that Jacques had finished 2020 with a substantial payout. Jacques received 拢13.3 million ($18.6 million) under Australian accounting rules, up from 拢7.1 million ($9.9 million) in 2019.
Two other senior executives, who were in charge of the iron ore division and the unit responsible for dealing with Indigenous communities, also received hefty remunerations. Both Chris Salisbury and Simone Niven left Rio last year.
The National Native Title Council (NNTC) welcomed the latest departures, adding that if Rio Tinto was serious about cultural change it would replace at least one of the outgoing executives or directors with at one Aboriginal person.
鈥淭hey are signalling the right intent but the proof will be in the pudding, in the action that they deliver,鈥� NNTC chief executive Jamie Lowe said in an emailed statement.
The Western Australian government has promised to update Indigenous heritage laws that allowed Rio Tinto to legally destroy the sacred sites.