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Rio Tinto has named Simon Trott as chief govt following the shock exit of Jakob Stausholm, tasking the corporate veteran with steering the miner throughout a interval of business consolidation.
The FTSE 100 firm stated Trott, who heads Rio’s iron ore enterprise, would take the highest job on August 25.
The Australian govt, a 25-year veteran, will take the helm as the corporate is engaged on integrating its new lithium enterprise, and has been contemplating whether or not to pursue greater offers with rival miners.
Rio, the world’s second-largest mining firm, held preliminary merger talks with Swiss miner Glencore final 12 months however didn’t strike a deal.
Richard Hatch, analyst at Berenberg, stated Trott was the “consistency candidate” who “telegraphs the established order for Rio”.
The appointment “might open the door barely for Glencore to return into the image”, Hatch wrote in a analysis notice, including that Trott could also be much less aggressive than the opposite chief govt candidates in preventing again any provide.
Different inner candidates for the function included Daring Baatar, chief industrial officer, and Jérôme Pécresse, head of Rio’s aluminium unit.
Iron ore is Rio’s largest enterprise, accounting for almost all of earnings final 12 months, however the firm has been diversifying by increasing in copper and lithium.
It’s also planning to speculate extra within the US, the place it owns a copper smelter and is engaged on growing the large Decision copper mine in Arizona.
Whereas President Donald Trump’s tariffs on copper, aluminium and metal have rocked the metals business, analysts stated that Rio was nicely positioned to learn from the shifting US insurance policies, relative to its rivals.
Trott will turn into Rio’s fourth chief govt in a decade, following the early departures of the earlier three.
Below Stausholm, who led the corporate for practically 5 years, the corporate struck a number of massive lithium offers, together with the all-cash $6.7bn acquisition of Arcadium.
Rio introduced Stausholm’s surprising departure in Might, with the board saying it could search a frontrunner with extra operational experience.
Stausholm, whose background is within the power business, presided over a significant push for cultural change on the mining firm, which employs greater than 60,000 folks. His predecessor Jean-Sébastien Jacques was fired after the corporate blew up a sacred Aboriginal web site in 2020.
Dominic Barton, chair of Rio, stated: “Simon and the board are aligned that Rio Tinto’s subsequent part is about unlocking important worth for shareholders from our portfolio, pushed by operational efficiency, and price and monetary self-discipline.”
Funding banker Simon Robey, a longtime Rio adviser, stated Trott was “a kind of uncommon individuals who has been someplace for a very long time, and might nonetheless convey freshness and independence of considering.”
Robey labored with Trott throughout Rio’s defence in opposition to BHP’s takeover bid in 2008, when Trott was on the enterprise improvement crew.
“I assumed then that he would find yourself operating the corporate at some point,” stated Robey. “He’s actually obtained a grip on stuff.”
Former Rio chief govt Leigh Clifford, who ran the corporate from 2000 to 2007, praised Trott’s appointment.
“Should you develop up in Western Australia, as Simon did, you might be residing and respiratory the mining business,” stated Clifford, who stays a shareholder.
“Iron ore is the engine room of the Rio Tinto organisation. Simon understands it, and he’ll have the ability to make it possible for this momentum is sustained.”
Firm veteran Trott will earn a base wage of £1.3mn, consistent with Stausholm’s in 2024. Rio’s share worth rose 0.2 per cent on Tuesday on information of the appointment.
