The powerful Australian Council of Superannuation Investors (ACSI), whose 37 members own on average 10 per cent of every ASX 200 company, said it wanted to see the Rio board “increase its connection with Australian operations and communities”.

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“The destruction of the Juukan caves resulted in a devastating cultural loss,” ACSI chief executive Louise Davidson said.

“Today’s announcement is a step towards the company rebuilding relationships with traditional owners.”

The $58 billion super fund HESTA welcomed “appropriate” board renewal. Chief Debby Blakey said the move would allow for fresh perspective and renewed focus on “repairing and building stronger links with Indigenous communities in the countries in which Rio operates”.

“Rigorous board oversight and governance will be crucial to achieving future progress in this regard,” she said.

Rio Tinto, which is dual-listed on the Australia and London stock exchanges, has faced criticism from investors and politicians for years amid accusations it has been disengaged from Australia, where its iron ore operations make up more than 90 per cent of the group’s profit.

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In the months following the blasting of the Juukan Gorge site, Mr Thompson and his board became the target of an investor revolt after a board-led review conducted by Mr L’Estrange determined no one should be stood down over the matter and that executive bonus reductions were an appropriate response.

However, this failed to satisfy many shareholders and key First Nations leaders, who told the board that docking the pay of well-paid executives fell significantly short of true accountability for the loss of such a culturally significant site. Calls for greater accountability eventually forced out Mr Jacques, his iron ore boss Chris Salisbury and corporate affairs boss Simone Niven.

Mr Thompson on Wednesday said he was proud of Rio’s achievements over 2020, including its response to the COVID-19 crisis and strong shareholder returns.

“However, these successes were overshadowed by the destruction of the Juukan Gorge rock shelters,” he said. “And, as chairman, I am ultimately accountable for the failings that led to this tragic event.

If Mr Thompson had not announced his plan to resign, it is likely he and others on the board would have faced a sizeable protest vote at upcoming annual investor meetings in the UK and Australia.

The Australasian Centre for Corporate Responsibility, a shareholder activist group, said there was no reasonable prospect that the company could have begun the enormous task of repairing its culture, relationships and trust until those who oversaw the “degradation of the past few years” had moved on.

“The announced departure of Thompson and L’Estrange suggests that Rio understands this,” the group’s James Fitzgerald said. “However, the task is not yet complete, and other members of Rio Tinto’s board, like Sam Laidlaw, should reflect carefully about whether their continuance is in the interests of the company and its shareholders.”