LEADERSHIP

Rio Tinto hired lawyers ahead of blast

Rio Tinto engaged law firm Ashurst to deal with any legal issues relating to its blast at Juukan Gorge.

The rock shelters at Juukan Gorge in Western Australia's north

The rock shelters at Juukan Gorge in Western Australia's north

The May 24 blast destroyed two culturally significant 46,000-year-old rock shelters.

In a May 21 meeting, Rio legal counsel Nic Tole informed colleagues, including iron ore chief executive Chris Salisbury, that Rio was legally covered for the blast under its section 18 consent and Ashurst had been hired in case traditional owners, the Puutu Kunti Kurrama and Pinikura people (PKKP), filed an injunction.

Communities manager Ainslie Bourne noted that while the risk of legal action remained, relations with the PKKP had stabilised.

The minutes of the meeting revealed legal teams for the two parties had communicated in response to the PKKP's plan to issue a press release.

Rio said its position was that its participation agreement included a non-disparagement clause.

"A reactive media statement will be prepared if required," the minutes said.

The documents provided to a parliamentary inquiry also included a letter from Greg Lilleyman, who is now chief operating officer of Fortescue Metals Group, but was previously with Rio Tinto.

Former Rio CEO Sam Walsh publicly said he had instructed the iron ore division not to disturb the rock shelters in 2013 and that Lilleyman could corroborate his account of events.

In a letter to Salisbury on August 10, Lilleyman said he had no recollection of Walsh's alleged instruction and he had left the iron ore division by May of 2013.

Rio said it could find no evidence of Walsh's claims in his emails.

The blast has caused reputational damage to Rio and resulted in Salisbury, CEO J-S Jacques and head of corporate affairs Simone Nivens forgoing bonuses.

Rio said due to heritage issues, more than 380 million tonnes of iron ore had been removed from mine plans, worth over $30 billion at current prices.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.