Rio Tinto has not fulfilled core pledge five years on from Juukan, Aboriginal group says
MELBOURNE, May 1 (Reuters) - Rio Tinto (RIO.AX), opens new tab has not modernised its agreement with an Aboriginal group on whose lands it mines iron ore, failing to fulfil a commitment made five years ago when it destroyed an important Aboriginal heritage site, the group said on Thursday.
Rio Tinto pledged to reform its business practices after it blew up the 46,000-year-old Juukan Gorge rock shelters in Western Australia in 2020 for an iron ore mine. The destruction sparked a huge public and investor outcry, a government inquiry and ultimately the exit of its CEO and chair.
here.
Deanna McGowan of the Robe River Kuruma Aboriginal Corporation said at Rio Tinto's annual general meeting in Perth that the Mesa J mine, the company's largest on the group's lands, had been operating for 30 years.
"You have paid us for three years," she said. When Rio Tinto negotiated the agreement with the group's elders twenty years ago, executives had said there was no need to include the mine because it would soon close, she added.
"And here we're now ... 17 years of payments that Rio has cheated us at Mesa J," she said.
The lands belonging to the Robe River Kuruma group do not include Juukan Gorge but are in the same Pilbara region.
Rio Tinto Chair Dominic Barton said the company was committed to reaching an agreement on the issues raised by McGowan.
"We want to be able to get to an agreement and a resolution working with you. We've had a number of conversations and we'll be having after this meeting as well, but there is a very, very strong commitment to work through these issues with you," Barton said.
Earlier in the AGM, Barton said the mining giant had relationships with more than 60 Indigenous and land-connected groups globally.
"Many of these are very positive relationships, while a small number remain challenged," he said.
Inquiries in the aftermath of the Juukan Gorge destruction revealed that past agreements between miners and many Aboriginal groups had prevented the groups from speaking publicly about damage to their heritage and underpaid them royalties for mining on their lands.
As a result, Rio Tinto and other major miners such as BHP (BHP.AX), opens new tab and Fortescue (FMG.AX), opens new tab pledged to update their land-use agreements with traditional groups.
Failures by Rio Tinto to reach such agreements could disrupt its production schedule.
The miner warned in its quarterly production report that its guidance remains "subject to the timing of approvals for planned mining areas and heritage clearances."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
2 hours ago
- Reuters
TRADING DAY Buoyancy trumping uncertainty
ORLANDO, Florida, June 10 (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Global markets remain buoyant, awaiting the outcome of U.S.-China trade talks in London and U.S. inflation figures on Wednesday, both of which could have a bearing on guidance from the Federal Reserve next week and investor sentiment more broadly. In my column today I look at how the Trump administration's crackdown on immigration could cause labor market distortions and headaches for Fed officials. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. Today's Key Market Moves Buoyancy trumping uncertainty On the day The World Bank slashed global growth forecasts, warning of the "significant headwind" from tariffs and heightened uncertainty, global stocks clocked their fifth consecutive all-time high. Britain's benchmark FTSE 100 is a whisker from reaching new peaks and Germany's DAX hit an all-time high last week, while on Wall Street the Nasdaq and S&P 500 are within a couple of percentage points of new record levels also. Yet the reasons for equity investors to be fearful right now are plentiful - worries over growth, inflation, tariffs, long-term interest rates, U.S. debt and deficits, and the fact that China, the world's second-largest economy, is still mired in a low growth and deflationary funk. Something not quite adding up, right? Perhaps. On the other hand, the fiscal taps are being turned on in China and Germany, British finance minister Rachel Reeves outlines her multi-year 2 trillion pounds ($2.7 trillion) spending plan on Wednesday, and U.S. President Donald Trump's 'big beautiful bill' currently going through Congress is front-loaded with fiscal stimulus too. None of that is really fresh news but the upshot is a lot of liquidity coursing through the global economy. Right now it is something investors appear willing to accept even if the price is increased debt, and for the U.S. and UK in particular, worse public finances. Big corporate deals are being struck, like the OpenAI and Google cloud service tie-up and Meta Platforms reportedly paying $15 billion for a 49% stake in AI startup Scale AI, and implied equity and bond volatility is low. After a period of fretting more about deficits and spiking bond yields, investors may now be viewing the future with their glass half full. Fiscal stimulus is coming and interest rates around the world are being cut. The monetary outliers are Japan and the U.S., but the Bank of Japan could be near the end of its tightening cycle and the Fed may be about to begin easing later this year. On top of this, there's a general belief that Trump will back down from his hardline stance on tariffs and that a palatable deal with China will be reached, the so-called 'TACO' - Trump Always Chickens Out - trade. Fresh news on that front, at least, should be forthcoming on Wednesday. Trump immigration crackdown creates jobs distortions, Fed headaches Seismic shifts in immigration are distorting the U.S. employment picture, making it harder for investors and policymakers to know exactly how much the labor market is actually slowing. Assuming the Trump administration makes good on its pledge to reduce immigration, either by stopping the flow of people coming into the country or by deporting many already here, the labor supply will shrink. The long-term impact of lower immigration is generally agreed to be negative, as new workers are needed to replace retirees, fill job vacancies and drive economic growth. Over time, fewer new workers will likely mean lower growth. But in the short term, a smaller pool of workers results in a tighter labor market, which keeps a lid on the unemployment rate, albeit artificially and probably temporarily. This may already be playing out. Figures released last week showed that employment in May fell by 696,000 jobs. That's the biggest single monthly decline since the historic losses seen during the pandemic in early 2020. Some economists argue that the recent drop is a consequence of Trump's immigration crackdown. Nonfarm payrolls rose 139,000. Meanwhile, the unemployment rate held steady at 4.2%, which though higher than it was two years ago, is still historically low by any measure. All else being equal, this points to a tight labor market, which should put upward pressure on wages and perhaps even warrant a more hawkish policy stance from the Federal Reserve. But that is almost certainly a misreading. When labor supply and the labor force participation rate fall, this brings down a country's so-called 'breakeven' job growth. That's the number of net new jobs the economy needs to keep up with growth in the working-age population and maintain a steady unemployment rate. That figure is falling, and if the Trump administration toughens up its anti-immigration policies further, this decline is likely to accelerate. According to economists at Morgan Stanley, breakeven employment growth averaged 210,000 jobs a month last year, and is averaging 170,000 so far this year. They reckon it will fall to 90,000 by the end of this year and 80,000 next year. Ryan Sweet, chief U.S. economist at Oxford Economics, goes further, estimating that the breakeven rate is "quickly approaching" 50,000 jobs a month due to weakening labor supply growth, primarily because of reduced immigration. "The unemployment rate can remain low, but for the wrong reasons," Sweet says. If these projections prove accurate, monthly employment and job growth could continue to slow without raising the unemployment rate. The contradictory signals this sends could create confusion for both investors and policymakers. In his press conference after the most recent Fed policy meeting, Chair Jerome Powell repeatedly told reporters that the labor market is "solid". The unemployment rate "remains low," and the labor market is "at or near maximum employment." If these headline indicators are the gauge, Powell is absolutely correct. But he also stressed that policymakers are looking at the "whole huge array" of labor market indicators for a truer guide. One of those inputs in the months ahead will no doubt be net immigration. And that could generate significant uncertainty, as there are huge gray areas and wide margins of error when trying to estimate net immigration and its impact on the labor market. In January, the non-partisan Congressional Budget Office projected net immigration of 2 million people this year and 1.5 million next year, down from an estimated 3.3 million in 2023. With Trump seemingly hardening his stance on immigration, those projections could turn out to be far too high. Morgan Stanley's economists just slashed their immigration forecasts to 800,000 this year and 500,000 next year. If these figures turn out to be closer to reality, we could soon be looking at a "tight" labor market with monthly payrolls gains of well under 100,000. Pity the poor Fed Chair who has to communicate policy in that environment. What could move markets tomorrow? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, opens new tab, is committed to integrity, independence, and freedom from bias.
Reuters
4 hours ago
- Reuters
Brazil's fiscal package to include higher tax on interest on equity
BRASILIA, June 10 (Reuters) - Brazil's Finance Minister Fernando Haddad said on Tuesday that the government's new fiscal package includes an increase in the income tax rate levied on so-called interest on equity (JCP) payments to 20% from 15%. JCP is a form of shareholder remuneration that allows companies to deduct such payments from their corporate tax base. Speaking to reporters, Haddad said that the decision to include the measure - previously proposed by the government but not voted on by Congress - came at the request of lawmakers. Haddad also confirmed that the fiscal package includes the unification of income tax rates on financial investments at 17.5%, replacing the current sliding scale of 15% to 22.5%, which varies according to the investment's holding period. The new rate would apply to all investments, including stocks and bonds, except those currently exempt from income levy, which would begin to be taxed at 5%, as Haddad had already disclosed on Sunday. The minister, who spoke after returning from a meeting with President Luiz Inacio Lula da Silva, said the additional revenue generated by the package would be used primarily to revise the previously imposed financial operation tax (IOF) hike on forfait operations. The IOF decree, which had been introduced to boost public revenues and also raised the tax on private pension funds and some credit and foreign exchange transactions, triggered strong pushback from both Congress and market players, prompting the government to seek an alternative path as lawmakers threatened to overturn the measure. Haddad defended the new fiscal measures on Tuesday, arguing that they are likely to support the strengthening of the Brazilian currency, pave the way for interest rate cuts, and help ensure compliance with this year's and 2026 fiscal targets.
Scotsman
8 hours ago
- Scotsman
SBS Savings Barometer shows three in four people have seen their savings hit this year
Three in four people in Scotland expect their savings to be negatively affected this year as economic pressures continue to mount. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... This follows new data from Scottish Building Society, which paints a concerning picture for many people as they assess their financial outlook for the year ahead. The Scottish Building Society Savings Barometer surveyed people across Scotland about their financial habits and attitudes amid persistent economic uncertainty. Advertisement Hide Ad Advertisement Hide Ad Almost half of all respondents reported a decline in their savings over the past 12 months, with households continuing to grapple with rising costs. Paul Denton, SBS CEO While concerns were widespread, the data revealed particular pessimism among those aged 35 and under, which is unsurprising given both property prices and higher interest rates remain high. Indeed a significant 70% of 25–34 year-olds had to use their savings just to cover day-to-day costs. More than 30% of people have either reduced or completely abandoned their savings goals this year. The generational divide is especially stark, with 80% of 16–24-year-olds having postponed or reduced their savings ambitions, compared to just 40% of those aged 65 and over. Geographical differences also emerged, with savers in areas with below-average property prices more likely to have increased their savings. In contrast, those living in higher-priced regions have seen their savings impacted by elevated mortgage costs, often relying on their savings to mitigate this rising cost. Advertisement Hide Ad Advertisement Hide Ad Paul Denton, Chief Executive of Scottish Building Society, said: "The Scottish Building Society Savings Barometer offers a vital snapshot of the personal finances of Scottish savers. The findings reveal widespread pessimism, with the majority of people having seen their savings take a hit in the past year and even more bracing for a tougher year ahead. SBS CEO Paul Denton speaking at the recent AGM "When 75% of people say their finances have been negatively affected by current economic conditions, it's no surprise confidence is low. Nearly 60% have dipped into their savings to cover rising costs in the last six months, underlining the real impact inflation is having on household budgets." The data suggests age is a key factor, with those aged 65 and over in a significantly stronger position than working-age individuals. A combination of inflation-linked pensions, lower exposure to rising mortgage rates and generally larger savings pots has created a two-tier financial landscape. A third (33%) of over-65s reported no change to their savings in the last year – the highest of any age group. Advertisement Hide Ad Advertisement Hide Ad Mr Denton continued: "We can't ignore the role age plays in financial resilience, particularly during such a challenging time for the economy. "Only 29% of those aged 16–24 were motivated by interest rates and product range when choosing a savings product, compared with 57% of those aged 65+. These figures suggest that the growing complexity of the savings market is making it even harder for young people to get ahead, underscoring the need for straightforward savings products and on the provision of financial education at a young age." While 40% of people managed to save something, it was less than they had planned, suggesting the appetite to save is there, but circumstances are making it difficult. Mr Denton concluded: 'Only 5% of people were able to save more than they had planned in the past year. Market conditions are constraining people's ability to save despite a clear appetite to do so. It is vital that the UK Government recognises these conditions and protects savers from additional tax constraints. In particular, the Cash ISA needs to be given protection from changes to give people the confidence to make sound long-term financial decisions.'
