The $52 billion super fund,which owns shares in Rio,also launched a push for the board to urgently address the"larger,systemic"issue surrounding the company's treatment of traditional owner groups by commissioning an independent external audit of all its agreements with First Nations people.
"Mining companies that fail to negotiate fairly and in good faith with traditional owners expose[themselves] to reputational and legal risk,"HESTA said in a statement."Without an independent review,we cannot adequately assess these risks and understand how they may impact value."
The destruction of the two culturally significant Juukan Gorge rock shelters,against the wishes of the area's traditional owners,the Puutu Kunti Kurrama and Pinikura (PKKP) people,has shed light on the power imbalance between resources giants and Indigenous groups. It has also sparked concerns about the inclusion of restrictive contractual obligations in some land-use agreements that prohibit traditional owners from voicing concerns and objections publicly
Mining companies that fail to negotiate fairly and in good faith with traditional owners expose[themselves] to reputational and legal risk.
HESTA
HESTA said it had lost confidence in the miner's ability to conduct the review on its own,and had contacted Allan Fels,a former head of the Australian Competition and Consumer Commission,to potentially conduct the review of Rio's agreements.
The super fund's pressure on Rio comes as another iron ore miner,the Andrew"Twiggy"Forrest-backed Fortescue Metals Group,faces a shareholder push to suspend works that would"disturb,destroy or desecrate"significant Aboriginal sites.
The resolution,which is being supported by leaders of key Indigenous land councils and native-title groups,asks for the moratorium to remain in place until an ongoing review of heritage-protection laws has been completed. It also asks Fortescue to remove clauses from land agreements preventing traditional owners from objecting to works.