Heads roll at Australian miner Rio Tinto after destruction of Aboriginal heritage sites

Rio Tinto's chief executive Jean-Sebastien Jacques will resign from the company "by mutual agreement" following the destruction of Aboriginal heritage sites by the company this year, ABC news reports.

The company's head of iron ore Chris Salisbury and head of corporate relations Simone Niven have also stepped down.

Salisbury and Niven will leave the company by the end of the year, following handover periods with their replacements.

Jacques will stay at the company until March 31, 2021, or until his successor is appointed, which Rio Tinto said is to "ensure business continuity.''

Rio has been under intense pressure to sack the three executives following the miner's decision to destroy ancient Aboriginal heritage sites in the Juukan Gorge in May.

"What happened at Juukan was wrong and we are determined to ensure that the destruction of a heritage site of such exceptional archaeological and cultural significance never occurs again at a Rio Tinto operation," Rio chairman Simon Thompson said in a statement.

"We are also determined to regain the trust of the Puutu Kunti Kurrama and Pinikura people and other Traditional Owners."

Thompson acknowledged that shareholder concerns played a significant role in the eventual decision to part ways with the three executives who were seen as directly accountable for the Juukan Gorge blasting.

"We have listened to our stakeholders' concerns that a lack of individual accountability undermines the group's ability to rebuild that trust and to move forward to implement the changes identified in the board review."

Initially, Rio Tinto only proposed reducing the bonuses of key executives involved in the Juukan Gorge decision.

Michael Slack, the head of research at fund manager Martin Currie Australia, said his firm met with Rio Tinto management again this week "to discuss the Juukan Gorge mismanagement".

"Rio has suffered significant reputational damage here and investors believe something has failed within the company," he said today.

The Australian Council of Superannuation Investors (ACSI) welcomed the departure of the three executives, describing the process as "drawn out" but praising the miner for listening to stakeholders.

"Rio Tinto now has the opportunity to address the necessary remediation, cultural heritage and risk processes with fresh eyes," ACSI chief executive Louise Davidson said in a statement.

"Rio Tinto must prioritise working with traditional owners, the Puutu Kunti Kurrama and Pinikura people, to rebuild their relationship.

National Native Title Council (NNTC) welcomed the dismissal of Rio Tinto's three executives, but said this was only the first step.

"I think we are all in agreeance that the initial measures doled out by the Rio board in cutting executive bonuses did not go far enough," the NNTC chief executive Jamie Lowe said.

"Several million dollars in lost income is a drop in the ocean for these individuals, whose governance failings and calculated decisions robbed Australia and Traditional Owners of a world heritage-significant site."

The NNTC has also called for an "open, transparent and independent review into Rio's processes and company culture to prevent an incident like the Juukan Gorge destruction from happening again.

Rio's share price dropped by 0.9 percent in early trade today but rebounded to be trading 0.2 percent lower than yesterday's close, at A$100.69, by 11:07am local time.-Photo: Supplied: Puutu Kunti Kurrama And Pinikura Aboriginal Corporation, Composite ABC News