Rio Tinto overhaul cuts to three units, axes execs, reviews mines

Rio Tinto’s (ASX, LON: RIO) new chief executive Simon Trott has launched a sweeping overhaul of the miner’s structure, consolidating operations into three core divisions while placing several non-core assets under review.Trott, who took the helm on Monday after leading the company’s iron ore business, said the restructuring would simplify Rio Tinto’s portfolio into iron ore, copper, and aluminium–lithium units.Matthew Holcz has been appointed chief executive of iron ore, Rio Tinto’s biggest profit driver. The newly unified division will combine Western Australian operations with Iron Ore Company of Canada (IoC) and, once operational, the Simandou project in Guinea.Some mineral assets are moving to a different portfolio for review. Richards Bay Minerals in South Africa, Canada’s iron and titanium operations, and US borates mines will be transferred to Chief Commercial Officer Bold Baatar, who will oversee a strategic assessment that could lead to sales.Rio Tinto is merging its lithium business with aluminium under the leadership of French national Jérôme Pécresse, based in Montreal. That group will comprise Atlantic Operations Aluminium, Pacific Operations Aluminium, and Lithium.Executives exitThe shake-up also brings leadership changes. Kellie Parker, the chief executive of Australia who played a key role in rebuilding Rio’s reputation after sexual assault claims and the 2020 destruction of a sacred Indigenous site, is leaving the company. Minerals head Sinead Kaufman, who had been considered for the top job, is also departing.The revamp comes as Rio Tinto grapples with falling iron ore and lithium prices and rising costs. Its July half-year profit of $4.8 billion was the lowest since 2020 and 16% lower than a year earlier.The minerals division under review has been under pressure. It generated $143 million in underlying earnings in 2024, down from $312 million in 2023, and remained cash-flow negative for two straight years as growth spending outpaced revenue. Borates, used in glass and industrial cleaners, and titanium dioxide, a pigment for paints and ceramics, have both faced weak demand and prices.Analysts at RBC Capital Markets said the scope of the review appeared limited, noting they had expected possible divestments in aluminum, iron ore and lithium. They described the review of borates and titanium as “low-hanging fruit” in a portfolio facing competing demands for lithium investment.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com