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.
