Rio Tinto cuts CEO, executives’ bonuses after caves blast review – CNBC

Rio Tinto mentioned on Monday this might perchance occasionally cut the non permanent bonuses of its chief govt Jean-Sébastien Jacques and two other senior executives following a overview of the firm’s destruction of two ragged caves in Australia.

The realm’s ideally suited iron ore miner stopped attempting firing any of its management for the most effective destruction of two historically valuable sacred caves in Western Australia tell in Could perchance honest — in opposition to the needs of Aboriginal Outdated school Owners — which sat on high of a high grade ore physique it deliberate to mine.

The destruction sparked public outrage and an Australian authorities enquiry that senior Rio management faced earlier this month and which moreover sparked calls from some shoppers for higher senior accountability.

“The overview came all over no single root trigger or error that at once resulted in the destruction of the rockshelters. It became once the tip end result of a series of choices, actions and omissions over a protracted duration of time,” the firm mentioned.

Rio mentioned it might perchance well cut again the non permanent bonuses of Jacques, Chief Executive of Iron Ore Chris Salisbury and Team Executive, Company Relations, Simone Niven in 2020 by about $3.7 million in total.

Jacques’ 2016 long-term incentive understanding award, due in the first half of of next one year, would moreover be diminished by about 1 million kilos ($1.3 million). He became once paid 5.8 million kilos last one year.

Rio moreover flagged that it became once reviewing the organizational construction of its heritage and communities feature that can perchance well narrative to Mark Davies, who joined the government committee in designate of safety and technical initiatives in July.

The miner moreover mentioned that it became once reviewing the terms of its original 2011 agreement with two Australian Aboriginal teams, the Puutu Kunti Kurrama and Pinikura (PKKP), in terms of consent to “ponder evolving practice.”

Rio did no longer give an explanation for the PKKP, the venerable owners of the two caves destroyed to mine iron ore, about three different mine plans, Jacques suggested the authorities enquiry, despite saying it had received entirely knowledgeable consent for blasting.