Rio Tinto fell out of favour with the general public, including investors, following its decision to blast two 46,000-year-old Aboriginal rock shelters at Juukan Gorge to expand an iron mine in Western Australia.
The move, while legal, sparked global outlash and shined a spotlight on how the company’s internal culture may have contributed to the regrettable incident, which cost Jacques the post.
It also triggered a parliamentary inquiry, which recently called on Rio Tinto to pay restitution to Indigenous Australians affected by the destruction and also fully reconstruct the damaged site.
Stausholm’s nomination came as a surprise to investors and analysts alike, as most expected the company to pick an external candidate.
“Some may perceive Mr Stausholm’s appointment as potentially indicating little change in overall strategy,” analysts at Morgan Stanley said, adding that the promotion should minimize the typical disruption period caused by management transitions.
Stausholm’s promotion also come as a surprise to Australian investors, who have argued that a new CEO should have local experience and be based in the country that provides 85% of Rio’s profits.
“Coming in at Rio at a time when the company’s social license has been so fundamentally undermined through its own actions is an enormous challenge,” said Adam Matthews, director of ethics and engagement at the Church of England.
More to come…
