Mining Giant Rio Tinto Caught Into Water Nightmare At Two Mines: Report
Portfolio Pulse from Lekha Gupta
Rio Tinto PLC (NYSE:RIO) faces pressure from socially conscious investors and lenders due to water management issues at its Oyu Tolgoi copper mine in Mongolia and an ilmenite mine in Madagascar. The Local Authority Pension Fund Forum (LAPFF) has raised concerns, which could affect Rio Tinto's efforts to gain approval for new mines in Serbia and Arizona. LAPFF, representing U.K. pension funds with over $445 billion in assets, plans to push for an independent water impact assessment at Rio Tinto's mine sites. The company has been graded 'F' by environmental adviser CDP for not disclosing water data since 2016. Rio Tinto will report its Q4 FY23 results on February 21, 2024.
February 12, 2024 | 10:49 am
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Rio Tinto PLC faces investor and lender pressure over water management issues at its mines, which could impact its project approvals and overall reputation.
The pressure from LAPFF and the negative grading from CDP highlight significant environmental and governance concerns that could deter investors and affect the company's ability to secure approvals for new projects. This situation, combined with the upcoming financial results announcement, could lead to increased volatility in Rio Tinto's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100