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Rio Tinto said on Monday that it would cut short-term bonuses from its chief executive Jean-Sébastien Jacques and two other seniors following a review of the destruction of the company’s two old caves in Australia.
The world’s largest iron ore miner recently stopped firing one of its leaders for the legal destruction of two historically important sacred caves in the state of Western Australia in May – against the wishes of Aboriginal Traditional Owners – who were sitting on top of a poor body of high class the plan for mine.
The devastation caused public outrage and an Australian government inquiry that confronted senior Rio leadership earlier this month and which also called on some investors to take better responsibility for seniors.
“The review found no single cause or error as root that directly resulted in the destruction of the rockshelters. It was the result of a series of decisions, actions and omissions over a long period of time,” the company said.
Rio said it would reduce the short-term bonuses of Jacques, Iron Ore Chief Executive Chris Salisbury and Group Executive, Corporate Relations, Simone Niven by about $ 3.7 million in total in 2020.
Jacques’ 2016 allocation for long-term incentive plan, in the first half of next year, would also be reduced by about £ 1 million ($ 1.3 million). He gained £ 5.8 million last year.
Rio also flagged that it was reviewing the organizational structure of its heritage and community function that would report to Mark Davies, who in July was a member of the executive committee in charge of security and technical projects.
The miner also said he was reviewing the terms of their 2011 agreement with two Australian Aboriginal groups, the Puutu Kunti Kurrama and Pinikura (PKKP), in agreement to “reflect evolving practices.”
Rio did not tell the PKKP, destroying the traditional owners of the two caves to mine iron ore, about three alternative mining plans, Jacques told the government investigation, despite saying it had won fully informed permission to explode.
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