Editorial: The world's second-biggest mining company can look to its own past for a way forward
With operations in more than 35 countries and revenue in the tens of billions of dollars, the world's second-biggest mining company, Rio Tinto, has come a long way since its formation in the 1870s when a group of investors bought the rights to a rich mineral site in the south-west of Spain.
It's a company that has had its fair share of financial and management upheavals over the decades, but when it comes to reputational damage, the destruction in May of the 46,000-year-old Juukan Gorge heritage rock shelter in Western Australia was one its biggest faux pas. While the company's board finally took decisive action last Friday – removing chief executive Jean-Sebastien Jacques and two deputies – there is clearly still some way to go.
There is no doubt the board has some more explaining to do. It needs to come to terms with a world where delivering a healthy bottom line is not enough. In the past few months, major listed companies AMP and QBE have sacked key executives and directors after scandals involving behaviour that didn’t meet community standards. The reputational damage and career-ending fallout from the banking royal commission are well known.
Rio Tinto can look to its own past for a way forward. Former chief executive Leon Davis was, in 1995, the first of the miners to sign a land rights agreement under the Native Title legislation enacted after the High Court’s Mabo decision. It went on to sign agreements with Indigenous groups across Australia and was justifiably proud of its record in building strong relationships with local communities.
Wiping out that reputation for the $135 million worth of iron ore it gained access to by destroying the ancient cave was a decision it will long regret. Rebuilding its standing must involve devolving power back to its Australian operations. That will take a board that is willing to admit that it has made mistakes, and wants to do more than window dressing in fixing the problem.editor Lisa Davies writes a weekly newsletter exclusively for subscribers.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Inside the mismanagement that saw heads roll at Rio Tinto — and priceless caves destroyedOutraged investors have forced Rio Tinto's chief executive to resign over the destruction of Indigenous cultural heritage in the Pilbara. The reason why is multi-layered, write Andrew Hopkins and Deanna Kemp.
Read more »
‘Rio is just the tip of the iceberg’: First Nations groups call for strengthened cultural protectionsIndigenous leaders warn more sacred sites risk irreversible damage unless cultural protections are strengthened, following the departure of three Rio Tinto executives following the Juukan Gorge blast.
Read more »
Rio Tinto's executive cull shows 'profit at all cost' cultures no longer cut itThe days of companies getting away with blaming systemic failures on a few bad apples and other lame excuses PR teams dreamt up are all but over.
Read more »
Rio Tinto's executive cull shows 'profit at all cost' cultures no longer cut itThe move by the Rio Tinto board to take action against the chief executive and two other senior executives should be a wake-up call to corporate Australia that cultures based on profit at all costs can no longer be tolerated | adele_ferguson
Read more »
Inside the mismanagement that saw heads roll at Rio Tinto — and priceless caves destroyedOutraged investors have forced Rio Tinto's chief executive to resign over the destruction of Indigenous cultural heritage in the Pilbara. The reason why is multi-layered, write Andrew Hopkins and Deanna Kemp.
Read more »
Rio Tinto's executive cull shows 'profit at all cost' cultures no longer cut itThe days of companies getting away with blaming systemic failures on a few bad apples and other lame excuses PR teams dreamt up are all but over.
Read more »