By: Creamer media

The changes, effective immediately, simplify Rio Tinto’s portfolio, with executives saying the move will enable safer, more sustainable and profitable growth while positioning the company to capitalise on future demand from the global energy transition.

“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,” said Simon Trott, who became CEO this week. “It will bring greater accountability and focus to our teams, underpinned by a more disciplined approach to operational performance and capital investment.”

The new structure consolidates all iron-ore operations, including the Pilbara mines in Western Australia, the Iron Ore Company of Canada, and the Simandou project in Guinea, into a single global business unit. Matthew Holcz, previously head of Rio’s Pilbara iron-ore operations, has been appointed CE of Iron Ore.

“I want to welcome Matt to his new role leading our global Iron Ore business,” Trott said. “With over two decades of international mining experience, deep roots in the Pilbara where he currently oversees 18 mines - and as a role model for Rio Tinto’s values - he is the kind of leader we need to drive safety standards, performance, and strong partnerships with communities, in our largest global business.”

Rio Tinto’s lithium business will be folded into the Aluminium division, under CE Jérôme Pécresse, creating a combined portfolio of Atlantic Operations Aluminium, Pacific Operations Aluminium, and Lithium. The grouping is intended to capture synergies in processing capabilities and downstream markets, while deploying productivity initiatives such as the company’s Safe Production System across the combined unit.

Copper, led by Katie Jackson, will continue to focus on ramping up production at Mongolia’s Oyu Tolgoi mine, stabilising operations at Kennecott in the US, and advancing development options including the Resolution project in Arizona and partnerships in Chile.

Outside the three main product groups, Rio Tinto’s Borates and Iron and Titanium businesses will be moved under COO Bold Baatar for a strategic review. The company said an update would be provided “in due course".

The reorganisation will also trigger leadership changes. Sinead Kaufman, CE of Minerals, will depart at the end of October after nearly three decades with the company.

“I would like to thank Sinead for her significant contribution over almost 30 years with the company,” Trott said. “Sinead joined Rio in 1997 as a geologist in the UK and has built an exceptional career, holding senior leadership roles across a range of commodities, including leading our divestment from coal and establishing our lithium operations.”

The company will also phase out the CE Australia role. Current incumbent Kellie Parker will remain during a transition period before stepping down.

“Kellie has been a transformational leader through a challenging period for Rio Tinto in Australia, setting us on a path towards being a better partner to the communities in which we operate,” Trott said. “Kellie approached this work with sincerity and courage and has successfully instilled important lessons and practices into our business, which we will sustain.”

Excutive line-up

Following the changes, Rio Tinto’s executive committee will comprise Trott as CEO, Baatar as COO, Georgie Bezette as chief people officer, Peter Cunningham as CFO, Mark Davies as chief technical officer and Isabelle Deschamps as chief legal, governance and corporate affairs officer, as well as Holcz, Jackson and Pécresse in their respective roles.

Trott emphasised the changes build on the company’s “resilient results” this year and position it to capture “strong mid-term production growth", while aiming to “unlock further shareholder value, putting both our capital and talent where it will deliver the greatest returns".