logo
Rio Tinto accused of not being upfront with shareholders about its environmental impacts at Perth AGM

Rio Tinto accused of not being upfront with shareholders about its environmental impacts at Perth AGM

Rio Tinto has been accused of failing to address what a group of traditional owners in Western Australia's north describe as "decades of hurt" caused by some of its mines.
The company owns two iron-ore mines within the Robe River Kuruma native title area in the state's Pilbara region, 1,400 kilometres north of Perth.
Rio Tinto has been at loggerheads with those traditional owners over how much groundwater it was extracting from the area for its mining operations.
There's been iron-ore mining on Robe River Kuruma country in the Pilbara since the 1970s.
(
ABC News: Charlie Mclean
)
At Rio Tinto's annual general meeting (AGM) in Perth on Thursday morning, Robe River Kuruma woman Deanna McGowan accused the company of not giving her people a fair share of revenue from one mine and for not rehabilitating areas damaged by mining back in the 1980s.
"We do not forget. We cannot forget," Ms McGowan said during public question time.
"Until you remedy your past, it stains our future together too."
Rio Tinto chairman Dominic Barton told Ms McGowan the company was committed to updating its agreements with her people, and solving the dispute over water.
"We acknowledge the impact mining is having on water and we are committed to rectifying and improving that,"
Mr Barton said.
Rio Tinto chair Dominic Barton speaking ahead of the company's 2024 AGM.
(
YouTube: Rio Tinto
)
The company's iron ore chief executive Simon Trott repeated the company's plans to reduce its groundwater use in the Pilbara by pivoting to a desalination plant currently being built in Dampier.
"The desal plant is progressing well. We will turn that on next year," Mr Trott said.
He also acknowledged the two parties were further away from reaching an agreement over compensation for historical mining damage.
"There are some issues where we need to continue to work with each other to find a solution."
Investors not getting the full story
Robe River Kuruma Aboriginal Corporation chief executive Anthony Galante said the details of these disputes weren't being fully reported to investors in Rio Tinto's Environmental, Social and Governance (ESG) reports.
"These are just examples where Rio Tinto tells you what they want you to hear," Mr Galante told the ABC ahead of the meeting.
"And doesn't provide all the data that is required to have a full and proper understanding of the impacts of its operations."
Photo shows
A waterfall within a deep red and blue gorge, as seen from a low angle.
The condition of Karijini National Park's spectacular gorges worries traditional owners and business operators as the tourism season looms.
Since the early-2000s, a desire for "ethical investing" in the financial sector has put pressure on multi-national companies to produce detailed ESG reports.
But Mr Galante said for the most part these reports lack independent scrutiny, with companies given free reign on what evidence they choose to highlight.
"I'll give an example in relation to water," Mr Galante said.
"Rio Tinto has established a website to track the amount of surface water it uses, but it emits to tell the story about how much groundwater it uses."
"That's an important issue because Rio Tinto has an aquifer in our country and we believe they have been over extracting water."
Global scrutiny
The Robe River Kuruma people aren't the only group accusing Rio Tinto of glossing over environmental issues linked to its global mining operations.
At the company's London AGM last month, human rights collective the London Mining Network accused the company of down-playing the environmental impacts from five of its mines in five separate countries.
Photo shows
Two dark-skinned hands holding some red dirt in their hands
Increasing demand for water and longer dry spells contribute to mass tree deaths in the state's mining heartland, say traditional owners.
"Rio Tinto has repeatedly undermined these concerns, silenced voices, ignored research findings ... and insisted upon its own frequently unsubstantiated technical and ESG claims," a London Mining Network statement said.
A Rio Tinto spokesperson told the ABC it welcomed the scrutiny of its stakeholders, communities and civil society organisations.
"We have engaged with the London Mining Network and their members on multiple occasions about these five sites," the spokesperson said.
"In some cases, outcomes require complex, multi-stakeholder processes."
The company also denied claims its ESG reports lacked independence.
"We use independent experts at all our operations and are members of leading global initiatives that determine our standards for working with communities and environment."
Big investment in WA mines
Mr Barton also used the AGM to outline further investment in the company's WA operations, including the development of what the company says may become the biggest iron ore mine in Australia.
"Over the next three years we expect to invest more than US$13.3 billion in new mines, plant and equipment in the Pilbara," Mr Barton said.
"We're also studying Rhodes Ridge, which may one day become the biggest iron ore mine built in Australia, potentially producing more than 100 million tonnes per annum."
Loading
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The world's biggest iron ore windfall is fading for Australia, with no clear successor
The world's biggest iron ore windfall is fading for Australia, with no clear successor

West Australian

time5 hours ago

  • West Australian

The world's biggest iron ore windfall is fading for Australia, with no clear successor

Flying deep into the heart of Western Australia, Rio Tinto Group executives, politicians and media step off a chartered jet into a Pilbara airport, little more than a sunbaked shed with metal detectors. Cameras roll. Smiles flash. They are here for the unveiling of Rio's Western Range, a new open-cut mine designed to pump out 25 million tonnes of iron ore a year. But behind the fanfare, a harsher truth looms: Western Range isn't about growth. It's about keeping the machine running. In the Pilbara — home to the world's largest iron ore output — Rio Tinto is swapping out old deposits for new just to maintain current production. The powerhouse sector that helped Australia sidestep the 2008 global financial crisis, churned out billionaires, and fed China's skyline ambitions is no longer booming - it's plateauing. Less than two months after the ribbon was cut at Western Range, a more muted signal followed. On Wednesday, Rio Tinto reported its lowest first-half profits in five years after iron ore prices slumped. The result wasn't a collapse, but a reminder that the cracks are widening - and the boom years are getting harder to hang onto. The steelmaking material that underpinned Australia's economic rise is losing its edge: ore quality is falling, margins are tightening, and the vast deposits that built decades of prosperity are slowly being exhausted. None of this will be swift, but the once-reliable resource may not be able to pull Australia through the next financial calamity. And there's not much of a fallback plan. The Pilbara — bigger than California — has fuelled the global iron ore trade since the first shipment set sail for Japan nearly six decades ago. Warnings of an impending slowdown have surfaced before, only for the industry to prove its resilience time and again. But this time, the headwinds are stronger and mining giants are pouring billions into what comes next, as the foundations of the industry begin to shift. 'It's a very significant risk that sits across the Pilbara,' said Greg Lilleyman, a veteran mining executive who served as Fortescue's chief operating officer and spent 26 years at Rio Tinto. 'Customers want higher quality iron ore, lower emissions per tonne of steel, higher productivity from smaller footprints' The lack of any clear successor to iron ore's economic heft is leaving a hole that Australia is unsure how to fill. As the Pilbara's dominance starts to wane, broader pressures are mounting: the re-elected Labor government is rallying top business leaders to tackle stagnant productivity with a budget stuck in deficit. The so-called Lucky Country is being forced to confront the original irony of its nickname: a nation long-cushioned by resource windfalls, now facing the cost of prolonged complacency. As China's hunger for Australian iron ore peaks, Canberra forecasts prices dropping to $US74 a tonne by 2027, around 40 per cent below the average price over the past five years. That spells trouble for the federal budget, with revenue from the sector expected to drop by more than $19 billion in the next two years alone. Furthermore, production volumes are expected to peak within three years. It's a sharp reversal for a sector that Westpac estimates drove more than half of the nation's living standards gains in the first two decades of the century. Without major productivity reform, the bank warns the end of the 'mining dividend' could cost each Australian $75,000 in lost income over the next decade, senior economist Pat Bustamante said in a July report. Not everyone is publicly acknowledging the scale of the challenge. 'Iron ore is the bedrock of Australians' prosperity and the thread which binds us to the global economy,' Madeleine King, Australia's minister for resources, told reporters at the Western Range mine opening in June. The 'project is further proof that Australia's iron ore sector is the best and most stable in the world.' Iron ore still makes up more than 4 per cent of Australia's economy and has long been the backbone of state and federal budgets. But keeping up production and funding exploration is getting harder and more expensive as ore quality declines. At the same time, steelmakers are under pressure to cut emissions, accelerating a pivot toward higher-grade ores that produce less carbon - much of it now coming from new mining hubs outside Australia. In West Africa, Guinea's long-delayed Simandou project, backed by Rio Tinto and Chinese state-linked investors, is finally nearing production, with its first shipment expected by year's end. Home to some of the world's highest-grade untapped iron ore reserves, Simandou spans over 100 kilometres and is projected to produce more than 100 million tons annually at full tilt. Australian media has dubbed Simandou the 'Pilbara killer' - an overstatement, but one that underscores the stakes. Its development reflects Beijing's long-term ambition: to break its dependence on Australian ore and gain greater control over a key input to its steel industry. Chinese state-owned companies are increasingly partnering with global miners, including China Baowu Steel Group Corp., which owns 46 per cent of Western Range. 'We are not just unveiling a new operation, we are celebrating the next chapter' in the Baowu partnership, Jakob Stausholm, outgoing CEO of Rio Tinto, said at the mine's opening, speaking just meters from a building-sized driverless truck dumping piles of ore into a crusher. The speeches were intended to emphasize strength and continuity: ore from the new pit was being piled onto an 18-kilometer conveyor belt that would roll all the way to Rio Tinto's existing Paraburdoo plant. But the plant has now been processing material for half a century - as China diversifies supply and demands cleaner ore, the Pilbara is starting to show its age. For much of this century, iron ore fines with 62 per cent metal from the Pilbara have set the global standard - it's the grade that's priced, traded, and shipped around the world. But that benchmark is now under pressure. As the quality of the material slips into decline, pricing agency Platts is planning to drop the benchmark to 61 per cent from next year - a small shift that signals a bigger challenge to Australia's dominance. High-grade ore is crucial as the world shifts from coal-heavy blast furnaces to cleaner electric-arc technology to cut emissions. Australia wants to lead the green steel race - Prime Minister Anthony Albanese underscored iron ore's role in decarbonization during his visit to Shanghai last month - but most Pilbara deposits fall short of the 67 per cent purity typically required, stuck between 56-62 per cent. Closing that gap will demand investing billions in renewables, hydrogen, and processing - no small task amid weak productivity and tight finances. 'What got us to this point won't get us where we need to go,' Tim Day, head of Western Australia iron ore operations at BHP, said at a June industry event in the Pilbara. 'We are playing in a global game, where the rules are changing radically as we speak.' Australia's mining giants, including global leader BHP, still boast some of the lowest production costs in the world, with hefty margins. But the fundamentals are shifting. Future output may rise in volume, but not in value. It's an even bigger concern given that this revenue stream is expected to bankroll the transition to clean energy, the only long-term strategic bet the mining majors are currently making. With rich deposits of lithium and rare earths, Pilbara miners that built their fortunes on red dirt iron are now redeploying capital into projects aimed at powering the energy transition and meeting soaring demand from data centers and tech industries. But earnings from these ventures remain a fraction of iron ore profits, and the investment risks remain significant. After more than a decade on the sidelines, Rio Tinto is back in dealmaking mode, betting big on the future of battery metals. Its $US6.7 billion acquisition of Arcadium Lithium last year positioned the miner for a bigger role in the global lithium supply chain. The timing, however, isn't ideal - prices remain mired in a downturn, and Rio is currently revising the cost of its Jadar lithium project in Serbia. BHP has also turned to strategic dealmaking to reshape its future. The world's biggest miner launched a bold $US49 billion takeover bid for Anglo American last year, driven largely by a desire to secure more copper, a metal critical to the global electrification push. While the bid ultimately failed, it signalled BHP's intent to pivot more aggressively toward alternative growth-drivers. Despite the growing momentum behind battery metals, China remains firmly in control of the supply chain and is likely to for years to come. Lithium, copper, rare earths and other key inputs to the energy transition currently generate only a fraction of the revenue that iron ore has delivered for decades. Annual iron ore exports were estimated at $116 billion in latest government data, compared with $13 billion for copper shipments and $4.6 billion for lithium. 'Critical minerals are important to Australia's economy, diversified commodity portfolio and Net Zero plan ambitions, but are not a viable alternative for iron ore,' said Caroline Tiddy, a geologist and associate professor at the University of South Australia. Fortescue founder and billionaire Andrew Forrest is one of the industry's loudest advocates for green technology, and has warned the Pilbara risks becoming a 'wasteland' if Australia fails to adapt to shifting global demand. Rio Tinto's incoming CEO Simon Trott, currently head of its iron ore division, remains more sanguine, arguing the region will anchor the economy for generations. The truth likely lies somewhere in between. Meanwhile, external threats to the Pilbara keep mounting. Beyond the challenge of replacing iron ore and coping with declining grades, US President Donald Trump's tariffs are already threatening broader global demand. Rivals like Brazil's Vale are ramping up output and supplying higher-grade ore, intensifying competitive pressure. Simon Trott has his work cut out. As he prepares to take the helm of the world's top iron ore exporter on August 25, he struck a confident tone just days before opening the new Western Range mine. 'Iron ore in the Pilbara will be continuing long after I'm gone - and long after my children's children have gone,' Mr Trott said in an interview. 'The Pilbara will last for many decades to come.' Bloomberg.

ASX miners slump on Thursday but market's rally extends into July
ASX miners slump on Thursday but market's rally extends into July

The Australian

time12 hours ago

  • The Australian

ASX miners slump on Thursday but market's rally extends into July

Weaker than expected earnings from Rio Tinto, troubles travelling to the US and tariffs starting to impact listed businesses, all dragged on the ASX during Thursday's trading. On a mixed day on the market, the benchmark ASX 200 on Thursday fell 13.60 points or 0.16 per cent to close the month of July at 8,742.80. The broader All Ordinaries also slipped down 16.40 points or 0.18 per cent to 8,999.00. Australia's dollar traded 0.26 per cent higher to 64.63 US cents. While the overall market dropped, eight of the 11 sectors traded higher, with gains out of the information technology and consumer discretionary sectors offset by the major miners slumping. The falls followed Rio Tinto announcing its earnings update after trading on Wednesday, informing the market that first half profits came in at their lowest point since 2020, on the back of falling iron ore prices. BHP fell 2.41 per cent to $39.25, Rio Tinto slumped 3.55 per cent to $111.70 and Fortescue slipped 2.31 per cent to $17.77. IG market analyst Tony Sycamore said even with Thursday's wobbles, July's reputation of being a good month for Australian investors continued in 2025. 'As it enters the home straight, it is poised for a 2.35 per cent gain for the month and on track for a fourth straight month of gains made more memorable by its 1580 points (22 per cent) rally from its early April 7169.2 low,' he wrote in an investment note. Consumer discretionary shares jumped after 11.30am after a surprising bounce in retail sales. Shares in JB Hi-Fi were up 1.30 per cent to 411.70, Harvey Norman gained 1.05 per cent to $5.80 and Lovisa Holdings jumped 2.15 per cent to $34.14 on the retail figures. According to the ABS retail sales gained 1.2 per cent for the month of June, its biggest lift since the end of the Covid lockdowns. AMP economist My Bui said June's retail strength, which came off the back of end of financial year sales and the release of the Nintendo Switch 2, might not be a sign of a strong economy. 'In addition, the strong June result has benefited from one-off releases and promotions, which is not necessarily a sign of strength,' she said. Overall though, Australia's market was unable to follow a jump on Wall Street, with the S & P 500 futures up more than 1 per cent on the back of major tech companies beating expectations. Microsoft futures are up 8 per cent and Meta surged 11 per cent as the two tech giants smashed quarterly earnings forecasts. In company news, shares in Flight Centre slumped 7.3 per cent to $11.94 after the business missed its guidance. The travel group said a combination of Middle East tensions, additional costs out of Asia and difficult travel conditions in the US added to the unexpected result. Champion Iron slumped 13.12 per cent to $4.17 after brokers downgraded the miner following a weaker-than expected trading update on Wednesday. Luxury retailer Cettire shares plunged 23.5 per cent to $0.26 after the business said it was accessing the impacts of US President Donald Trump's tariffs on the business. Shipments to the United States represent approximately 40 per cent of Cettire's gross revenue. Read related topics: ASXRio Tinto Business Breaking News End-of-financial-year sales and Australians flocking to one electrical item have triggered an unexpected retail boom. Business Breaking News A key Reserve Bank official has hinted at an August rate cut after welcoming new inflation figures showing the lowest rate since 2021.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store