Rio chair to resign, takes Juukan blame

Rio Tinto chairman Simon Thompson will not seek re-election at the company’s AGM next year after taking full responsibility over the destruction of ancient rock caves in the Pilbara.

Mr Thompson, who will also resign as a non-executive director, said Rio's achievements last year were overshadowed by its destruction of 46,000-year-old rock shelters at Juukan Gorge, which he felt “ultimately accountable for”.

He said Rio in the last eight months had engaged extensively with traditional owners and indigenous leaders to learn lessons from the tragedy.

“We have taken decisive action to address the weaknesses identified in our risk management and governance, while also acknowledging the need to improve our work culture and to rebuild relationships,” Mr Thompson said.

He said newly appointed chief executive Jakob Stausholm has identified key priorities to rebuild trust Rio has lost.

Mr Thompson has served on the Rio board as non-executive director since 2014 and as chair since 2018.

“Throughout my seven years on the Rio Tinto board, I have endeavoured to promote a progressive, social and governance agenda,” he said.

“While I am pleased with the progress we have made in many areas, the tragic events at Juukan Gorge are a source of personal sadness and deep regret, as well as being a clear breach of our values as a company.”

Senior independent directors Sam Laidlaw and Simon McKeon will jointly lead the search for a new chairman.

Meanwhile, independent non-executive director Michael L'Estrange will not seek re-election at this year’s AGMs following “significant” surgery in February, which has required him to reduce his workload.

He said it was an honour to have served on the Rio board since 2014.

“I wish Jakob and the new executive [team] well for the future as they build on Rio Tinto’s many strengths and continue to implement the critical changes aimed at ensuring that an occurrence such as the destruction of the Juukan Gorge rock shelters never happens again,” Mr L’Estrange said.

He will retire from the board at the conclusion of the 2021 AGM.

Shares in Rio were up 1.7 per cent at 1:10pm AEDT to trade at $129.36.