Anglo-Australian mining titan Rio Tinto has selected its new CEO following the resignation of former chief Jean-Sébastien Jacques back in September after being linked to a string of controversies.
Former finance chief Jakob Strausman has been selected to replace former CEO Jacques. Credit: Rio Tinto
Jakob Strausholm, the company's former finance director, has been selected to replace Jacques as the company attempts to rebuild its reputation after a few former executives were let go following a shareholder meeting after the mining giant was accused to blowing up a 46,000-year-old cave system in Western Australia sacred to the Kurrama aborigines.
Read more: Rio Tinto CEO quits following Jukaan Gorge controversy
Danish-born Strausman's selection defied analyst and shareholder expectations. Initial predictions assumed the mining company would select an external candidate to take over the reins as CEO.
The head of major Rio Tinto shareholder HESTA said investors would be "watching closely" how the company's board and new senior leadership team take action to improve governance and oversight in the face of recent controversies.
Debby Blakey, HESTA's CEO, said: “Investors have an expectation of significant and lasting change. A vital first step is opening up all agreements with traditional owners to an independent review.”
A parliamentary inquiry into the Jukaan Gorge disaster has described the mining giant's actions as "inexcusable" and has called for a freeze to any mining operations that threaten indigenous land.
HESTA will be closely monitoring Tinto's response to the inquiry and taking action if required.
Read more: Rio Tinto's destruction of Juukan Gorge "inexcusable" say Australian lawmakers
The destruction of the caves at Jukaan Gorge is just one of a string of controversies Rio Tinto have been embroiled in this year.
The Anglo-Australian mining giant is currently facing mounting pressure from the Mongolian government as it seeks an extension for a gold mine just north of the border with China.
Officials want the company to form a special committee to review the case.
Tinto is also facing backlash and a class-action lawsuit following an investigation into a copper mine on the autonomous Papua New Guinea island of Bougainville that found it has not adequately cleaned up following its closure.
The pollution caused by the mine, which was closed in 1989, has poisoned local water systems and caused copious amounts of dust to fill the air.
The mine caused an uprising which escalated into a civil war, which resulted in a referendum where Bougainville chose to secede from Papua New Guinea.
Strausholm has admitted that restoring trust with Australian aborigines and other key stakeholders was "a key priority" for the company.
He will also be tasked with cleaning up the situation in Mongolia and leading the company through its various investigations and suits.
In a statement released on Thursday, Mr Strausholm said: “I am truly delighted and humbled to be given the opportunity to lead this tremendous company.
“Rio Tinto’s purpose is to produce the materials essential to human progress and I remain deeply committed to this after the difficult times we have faced during 2020.
“I am also acutely aware of the need to restore trust with traditional owners and our other stakeholders, which I view as a key priority for the company.”
Rio Tinto chairman Simon Thompson said “I am pleased to announce the appointment of Jakob as Chief Executive of Rio Tinto. His blend of strategic and commercial expertise, strong values and a collaborative leadership style are the ideal qualities for our next chief executive.
“Jakob has already made a significant contribution to the performance of the Group in his role as Chief Financial Officer. He has a proven track record as a senior executive with deep industrial and resources experience spanning strategy development and technology, as well as financial and risk management.
"He has also demonstrated the ability to build effective relationships and has a strong personal commitment to the role of business in promoting sustainable development.”
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