Daily Stock Market News

Rio Tinto share price dips amid ‘important agreement’

two hands shake in close up at the side of a mine. One party is wearing high visibility gear and there is earth and heavy moving equipment in the background.

Image source: Getty Images

The Rio Tinto Limited (ASX: RIO) share price is in the red on Monday despite the company announcing an agreement with the Puutu Kunti Kurrama and Pinikura (PKKP) Aboriginal Corporation.

The agreement marks an effort to remedy the S&P/ASX 200 Index (ASX: XJO) iron ore giant’s relationship with the PKKP people following the destruction of two ancient rock shelters at Juukan Gorge in 2020.

Right now, the Rio Tinto share price is 1.85% lower at $103.70.

For comparison, the ASX 200 has slipped 0.49% at the time of writing. Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is underperforming, falling 1.49%.

Let’s take a closer look at Rio Tinto’s latest agreement and how the company’s share price is performing today.

Rio Tinto share price falls amid ‘important agreement’

The Rio Tinto share price is slipping despite the company shaking hands on the creation of the Juukan Gorge Legacy Foundation.

Under the agreement, the ASX 200 giant will provide financial support to the foundation, which will be led and controlled by traditional owners. The financial terms of the agreement will not be disclosed.

The foundation will work to progress major cultural and social projects. Such projects will include creating a new keeping place for storage of important cultural materials.

Today’s release from Rio Tinto reads:

In accordance with the right to self-determination, the agreement reflects the desire of the Traditional Owners to create a foundation that supports the cultural, social, educational, and economic aspirations of the group. The foundation … will also enable the delivery of broader benefits through commercial partnership opportunities.

Further discussions have centred on a new approach to co-management of Country and the ongoing rehabilitation of the rock shelters and their surrounds.

Rio Tinto CEO Jakob Stausholm commented:

We fell far short of our values as a company and breached the trust placed in us by the PKKP people by allowing the destruction of the Juukan Gorge rock shelters. As we work hard to rebuild our relationship, I would like to thank the PKKP people, their elders, and the Corporation for their guidance and leadership in forming this important agreement.

Today’s tumble included, the Rio Tinto share price is 4% higher than it was at the start of 2022. It has also gained 10% over the last 12 months.

Comparatively, the ASX 200 has fallen 5% year to date. The index is currently 0.5% higher than where it was this time last year.

Read More: Rio Tinto share price dips amid ‘important agreement’

You might also like
A note to our visitors

This website has updated its privacy policy in compliance with changes to European Union data protection law, for all members globally. We’ve also updated our Privacy Policy to give you more information about your rights and responsibilities with respect to your privacy and personal information. Please read this to review the updates about which cookies we use and what information we collect on our site. By continuing to use this site, you are agreeing to our updated privacy policy.