New Rio CEO says Pilbara developments will continue despite Juukan fallout

New Rio Tinto chief executive Jakob Stausholm says the major miner is optimistic it will be able to continue to develop Pilbara iron ore projects despite the company’s Juukan Gorge disaster.

In May 2020, Rio blasted 46,000-year-old Aboriginal rock shelters at Juukan Gorge in the Pilbara.

The move went against the wishes of the traditional owners, the Puutu Kunti Kurrama and Pinikura people, shocked investors, forced the resignations of former chief executive Jean-Sebastian Jacques and two of his deputies, and sparked a federal parliamentary inquiry.

New Rio Tinto CEO Jakob Stausholm photographed prior to release of 2020 full year results, at Rio Tinto’s Perth office.
New Rio Tinto CEO Jakob Stausholm photographed prior to release of 2020 full year results, at Rio Tinto’s Perth office.Credit:Philip Gostelow

The West Australian government is overhauling its outdated Aboriginal heritage laws, under which Rio was granted state approval to blast Juukan Gorge. The new legislation is expected to be introduced to parliament after the March state election.

Advertisement

Industry analysts and investors have warned WA’s heightened focus on the engagement between mining companies and Indigenous groups in the wake the disaster could result in project delays and reduced exports from the region.

As he released Rio’s full year financial results from Perth on Wednesday, Mr Stausholm said he was optimistic new developments would still progress.

“Obviously I cannot give you full clarity because I don’t know exactly what will be the outcome of the new legislation in WA but I am heartened to see that with today’s results that we were able to produce the iron ore we were aiming for and we are confirming targets for this year that even indicate at least at the mid-point a growth in iron ore,” he said.

Mr Stausholm said construction of the company’s new $2.6 billion Gudai-Darri iron ore mine was on schedule, with first production targeted for 2022, and studies were already under way on the project’s planned second phase, which could increase the mine’s annual production capacity from 43 million tonnes to as much as 70 million tonnes.

“We are learning tough lessons around how to work effectively from our side in partnership with the traditional owners and it will require work, but it doesn’t mean we can’t find developments for mutual benefit and therefore I remain optimistic despite the challenges going through these processes that we can continue to develop our iron ore business,” he said.

Mr Stausholm, who was appointed chief executive in December, visited the Pilbara earlier this week to meet with traditional owners and described the trip as “very difficult and emotional”.

“I witnessed first hand the pain we have inflicted,” he said. “It was a confronting experience and has had a profound impact on me.”

While Rio has taken a number of steps to begin reparations for the blasting of the Gorge, Mr Stausholm said discussions around financial compensation had not yet started, with the focus currently on rebuilding the relationship between the company and the community.

He was not willing to place a timeline on any agreement between the groups, saying “there is no definition of rationality here, things have to go to the speed that both parties are comfortable about”.

Most Viewed in Business

Source: Thanks smh.com