MELBOURNE (Reuters) - Rio Tinto chairman Simon Thompson is set to face further pressure over the board's handling of the destruction of sacred rock shelters in Australia after an Indigenous group accused him of breaking a personal promise, analysts said Learn More
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The traditional owners of the rock shelters said Thompson had told them Rio's acting head of iron ore, Ivan Vella, who had led reconciliation efforts, would see the process through to its end, The Australian newspaper reported on Thursday, citing a letter to Rio from the traditional owners
The destruction last year of the 46,000-year-old Juukan Gorge rock shelters, while legal, sparked a public and investor uproar that led to the resignation of then CEO Jean-Sebastien Jacques and two deputies, and a promise by Rio Tinto to repair ties
Thompson is likely to face increasing pressure to step down, given the recent spotlight on social issues that is worrying investors, even with solid financial results, said David Lennox of Fat Prophets in Sydney which holds Rio shares
In the letter to Rio, Wilson said the group had explicitly asked Thompson to clarify who would be responsible for mending the relationship, following the destruction of the shelters to extend iron ore mining, The Australian said
"Mr Thompson was unequivocal in his response; Ivan Vella was nominated as having full board imprimatur for repairing the relationship from a Rio Tinto perspective. This responsibility was to have lasted from that meeting through to the conclusion of the repair," the letter said
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