Mining giant Fortescue has defended its decision not to stand down a key executive accused of sexual harassment and bullying while an independent legal firm conducts an investigation into the claims.

The miner, chaired by billionaire Andrew Forrest, is also facing a separate class action lawsuit from female employees who allege widespread sexual harassment and assault at its remote mining sites, including reports of men stealing their underwear from public laundries and women being unable to go to the gym because men touched them inappropriately.

The fresh claim and ongoing investigation by MinterEllison into an executive in the top echelons of the company was first reported by the Australian Financial Review this month.

When asked directly, during the company’s annual financial results briefing on Thursday, why it had not stood down the executive as is normally the case when serious claims are being investigated, Fortescue’s chief executive for growth and energy Agustín Pichot said, “We have taken extensive external legal and governance advice to make the decisions we’re making.”

“Our top priority is our people and sexual harassment and unlawful discrimination and any behaviour that makes people feel unsafe has no place here under our leadership,” he added.

The company’s annual sustainability report, which was also released on Thursday, says Fortescue dealt with 29 cases of sexual harassment or discrimination over the year to July. One worker was sexually assaulted, 13 were subject to inappropriate sexual contact, another 10 were sexually harassed and five faced racism or related discrimination, the report notes.

BHP said this week 150 of its employees were subjected to sexual harassment, including indecent touching and stalking, or racial abuse in just 12 months, leading to 131 sackings and resignations at the mining giant in response.

Fortescue’s head of metals Dino Otranto revealed the miner had dismissed 11 employees for sexual harassment or discrimination over the past financial year.

Some of the cases detailed in company’s sustainability report may be the subject of a class action lawsuit filed by law firm JGA Saddler in June on behalf of female employees who allege widespread sexual harassment and assault against them and other women at the company’s remote fly-in, fly-out sites.

JGA Saddler lawyer Paris Hamrey said in June that when the firm had spoken to thousands of women who worked for Rio Tinto and BHP, Fortescue’s worksites were often mentioned as being unsafe for women. “One of the most disturbing regular reports is women on Fortescue worksites being warned against washing their underwear in on-site laundries because theft of female underwear is rife,” Hamrey said.

The mining industry, where large groups of mostly male workers stay for lengthy periods in remote camps, has suffered a series of damaging sexual harassment claims in recent years.

Mining giants BHP and Rio Tinto are subject to separate harassment and sex discrimination class actions lodged in 2024, and still before the courts. An independent report commissioned by Rio found in 2022 that sexual harassment was widespread among its fly-in, fly-out workers. A parliamentary inquiry uncovered similar allegations at BHP in 2021.

Fortescue is one of Australia’s largest mining companies with a market value around $55.6 billion. It operates multiple mine sites in Western Australia’s iron-ore-rich Pilbara region.

The company on Thursday reported a full-year profit of $4.1 billion after taking a big impairment relating to its Iron Bridge mine, and said it will pay shareholders a full-year dividend of $1.08 per share, representing a 65 per cent payout of underlying net profit after tax.

“Our record operating performance this year underpinned a 9 per cent increase in underlying EBITDA and a 25 per cent increase in free cash flow,” Otranto said.

Meanwhile, the Queensland government and Fortescue said they have reached a confidential settlement to resolve their dispute over $66 million in state subsidies given to the company to kickstart an electrolyser manufacturing factory in Gladstone. The project was meant to produce emissions-free hydrogen at scale but was killed off by Fortescue last May.

In a joint statement, the Queensland government and Fortescue said the terms of settlement were confidential, but the “value from the state’s $66 million investment has been retained in Queensland for Queensland taxpayers.”

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