Rio Tinto

Over the first two decades of the 21st century, Rio Tinto, a 150-year-old global mining leader, faced significant volatility as it navigated an increasingly globalized and financialized economy. Mining companies, heavily reliant on commodity prices, struggled after the 2008 Great Recession, leading to cost-cutting measures and changes in how they managed their global operations.

In May 2020, Rio Tinto legally blasted two sacred, 46,000-year-old caves at Juukan Gorge in Western Australia to access $135 million worth of iron ore. The decision deeply distressed the Traditional Owners, who had long opposed the action, and sparked widespread criticism from the government, investors and communities. The fallout led to the resignation of Rio Tinto’s CEO, two senior executives, and the board chair. Jakob Stausholm, formerly CFO, became CEO in January 2021. This case provides background and traces the events that precipitated Rio Tinto’s decision to blow the Juukan Gorge caves—and the ensuing stakeholder backlash.