Rio Tinto chair says mining permitting process a challenge for ESG
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The news: Rio Tinto’s chair says the permitting process has turned into a challenge in the decarbonisation of the world economy, as the mining giant looks to navigate the underlying tension between the environment and societal needs.
The context: Rio chair Dominic Barton told shareholders on Thursday the company saw a clear opportunity as the world looks to add renewable electricity generation at the fastest ever pace in the next five years. The infrastructure required for this would require materials produced by Rio, he said.
Barton said public perception does not reflect the importance of the mining industry to society. He said tensions remained between the environmental and social elements of ESG as society’s expectations evolved.
Rio's shares were down 0.5% to 128.68 in early trading on the ASX but over the past 12 months has risen 15.78%.
What they said: “At a global level, we know we need mining to avert a climate disaster, but the reality is sometimes challenged at a local level. Even where governments are supportive, one of the biggest challenges isn’t the mining operation itself, but the permitting process,” he said at Rio’s annual shareholder meeting in Brisbane.
The source: ASX announcement
