When cave blast dust settles the buck stops with bosses

The Juukan Gorge in Western Australia is one of the earliest known sites occupied by Aboriginals. Picture: PKKP Aboriginal Corporation via AFP

The amount of iron ore Rio Tinto stood to extract by its destruction of the ancient Juukan Gorge caves was tiny — not only to its massive Pilbara iron ore operations, but also in comparison to the immense reputational damage inflicted on the company.

Rio chief executive JS Jacques and his iron ore chief Chris Salisbury were sufficiently contrite and transparent in Friday’s parliamentary inquiry hearing, but it remains to be seen whether they have done enough to save their jobs.

The revelation that Rio included the caves in its mine planning to collect a further eight million tonnes of iron ore, with a value of $US134m, is particularly jarring when measured against the scale of the miner’s operations and profits.

The eight million tonnes represents just over a week’s production for the huge iron ore mines, and just 0.03 per cent of the more than 23 billion tonnes of iron ore resources Rio has up its sleeve in the Pilbara.

And the $US134m in net present value of that ore pales in comparison to the $US9.6bn — or $13.3bn — in underlying earnings before interest, taxation, depreciation and amortisation that Rio amassed in the first six months of this year.

Many of the decisions that led to the destruction were made prior to Jacques and Salisbury moving into their current roles. Asked if anyone had been disciplined or fired over the incident, Jacques said it was a “complex” issue that involved many different people over 17 years.

But the highly paid pair clearly had ultimate responsibility when the caves were drilled, packed full of 66 tonnes of explosives and — despite a desperate eleventh-hour plea by the local traditional owners — destroyed. While Jacques may not yet have determined just who is responsible, the rest of the world seems in little doubt it ultimately rests on the shoulders of him and Salisbury.

It says a lot about the universal outrage over the incident that politicians from across the spectrum — from former resources minister and passionate mining advocate Matt Canavan and Queensland Liberal National Party MP George Christensen through to Greens senator for WA Rachel Siewart — were equally aggressive and probing in their questions.

Jacques and Salisbury have been called back to testify before the committee again. Beyond that, there is a strong chance their cards have been marked.