New Rio Tinto chief executive Simon Trott has rung in the changes, with the company unveiling a new operating model and an executive shake-up as it looks to extract greater shareholder value.
As part of the refresh, effective immediately, Rio Tinto will simplify its product group structure to three businesses: iron ore; aluminium and lithium; and copper.
The iron ore business will bring together the company’s iron ore operations under the leadership of Matthew Holcz, who has been appointed chief executive iron ore.
The unified portfolio will integrate Rio Tinto’s Western Australian iron ore operations with the Iron Ore Company of Canada and the Simandou project in Guinea upon its completion.
The company said the new iron ore group “will combine the proven performance of the company’s established iron ore operations with the potential of Simandou”, while also “sharing safety best practices, cutting-edge technologies and operational experience across the entire iron ore portfolio to create an even stronger global business”.
The lithium business will move into the aluminium product group under the leadership of Jérôme Pécresse. The new group will consist of three businesses: Atlantic Operations Aluminium, Pacific Operations Aluminium and Lithium.
The company said the new structure will enhance processing capability and downstream exposure, while deploying shared productivity initiatives, such as the Safe Production System, a key driver of improved performance in the aluminium business.
Rio said that the copper business, led by Katie Jackson, “remains well positioned to capitalise on the global energy transition”, and will be “focused on the successful ramp up of Oyu Tolgoi, the stabilising of Kennecott and advancing future options, including the Resolution project in the USA and partnerships such as Nuevo Cobre in Chile”.
The reshuffle sees the exit of two long-term Rio Tinto executives, Kellie Parker, Rio’s chief executive of Australia, and minerals chief executive Sinead Kaufman.
Parker’s role will remain with the company during a transition period, with responsibilities for external relationships and stakeholder engagement moving to a new head of Australia role. Kaufman finishes up in October.
Trott, who was appointed in July and has been in the role for a week, said the changes aimed to bring greater focus and accountability to the company.
“A simplified business structure, grounded in our fundamental commitment to safety and with sharper focus on the most compelling opportunities we have, will enable us to deliver new standards of operational excellence and value creation,” he said. “It will bring greater accountability and focus to our teams, underpinned by a more disciplined approach to operational performance and capital investment.
“We have delivered resilient results this year, remain on track to deliver strong mid-term production growth, and continue to make progress against our objectives. Our focus now is on unlocking further shareholder value, putting both our capital and talent where it will deliver the greatest returns.”
Trott, who joined the company in 2000, took over from Jakob Stausholm as the company’s chief executive officer.
Outside of the three core product groups, Rio Tinto’s borates and iron and titanium businesses will move to the chief commercial officer’s portfolio for strategic review, with an update forthcoming on the outcome of the reviews.
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Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
