Thursday’s release of his new executive team came with the welcome news that former Pilbara occupational therapist, Kellie Parker, will be Rio’s new “chief executive Australia”.
The message he attempted to send from the executive moves were that relationships matter, and Rio needs a step change to underline that reality.
The internally-based management shake-up, after his December appointment, shows the company a new boss has started and change is necessary.
Stausholm spent time with three of the company’s external headhunters to develop his management team, which also shows his recognition of the need to have the right people in the job.
With the exception of former Egon Zehnder executive James Martin, as chief people officer, the new executive team are reshuffled Rio executives.
That said, Stausholm has made a good start and clearly understands the cultural change needed.
The former Shell executive, while understanding the company needs to fight to restore its social licence to operate in the wake of Juukan Gorge debacle, knows now is not the time for panic.
He is taking things a step at a time and will spend his time in Australia to get to know all the right people and start making amends for the caves’ destruction.
Investors will want to see changes at board level to help boost confidence in the company after the attempted whitewash by Michael L’Estrange, in his board report on Juukan, clearly missed on every level.
The appointment of Arnaud Soirat as chief operating officer shows Stausholm is aware the miner needs to take a more holistic approach to operating excellence which extends way beyond digging out more safely. It starts with having the community support for its work.
Australia is not Rio’s only trouble spot with the Resolution Copper joint venture with BHP in the US a fight waiting to happen with the local Apache landowners.
The proposed underground mine was approved in the final days of the Trump administration and sits in the middle of sacred land in the Tonto National Forest.
Stausholm, having reshuffled Rio’s leadership, will now be seeking stability as slowly but surely his team rebuilds lost trust.
Australian boss Parker, the daughter of Pilbara pharmacists from the town of Wickham, will take up lodging in Melbourne, re-establishing the base in Australia.
Local lead director Simon McKeon is also Melbourne-based, as are many of the company’s vocal shareholders.
Another West Australian local, Simon Trott, will take on the leadership of iron ore, which is the engine room for Rio but also the source of of its Juukan debacle.
Stausholm has days looking out the window of his Perth hotel ahead of him, but that gives him plenty of time to make the necessary phone calls to start the rehabilitation. Today’s moves were a step in the right direction.
Rio Tinto boss Jakob Stausholm is in the early stages of a 14-day quarantine in Perth, ahead of what is planned to be a couple of months spent starting to restore the mining giant’s reputation in Australia after the destruction of ancient rock shelters.