Rio Tinto boss Jakob Stausholm resigns from mining giant
Rio Tinto will replace its chief executive before the end of the year with a mystery successor in a shock shake-up at the top of the mining industry. He is Rio’s fourth CEO exit in 12 years.
Rio Tinto will replace chief executive Jakob Stausholm before the end of the year with a mystery successor in a shock shake-up at the top of the mining industry.
The leadership upheaval suggests the Rio board, including chair Dominic Barton, did not consider Mr Stausholm the right leader to turnaround the performance of its mines and deliver new projects.
A source close to the company suggested Mr Stausholm was pushed, making him the fourth chief executive to leave on bad terms in 12 years.
Mr Stausholm often conceded that Rio had lost its status as the best operator in the mining industry by stating he wanted to “get back” a crown BHP was only too happy to claim.
Perth-based Simon Trott, who leads the company’s iron ore operations in WA, and Mongolian-born chief commercial officer Bold Baatar are considered leading contenders to take the reins from Mr Stausholm, who has been in the top job since January 2021.
Mr Trott is considered the clear favourite if he wants the job.
The succession race comes on the eve of the fifth anniversary of Rio blowing up ancient rock shelters at Juukan Gorge in WA, a scandal that earned international condemnation and ultimately cost then chief executive Jean-Sébastien Jacques his job.
Mr Stausholm was tasked with restoring Rio’s relationship with traditional owners and other stakeholders post-Juukan Gorge. He was acquisitive too: earlier this year he bought Arcadium Lithium for $US6.7bn.
The Arcadium deal has cast a long shadow and a writedown on the value of the asset appears imminent as lithium prices continue to fall, the source said, speaking on the condition of anonymity.
In a note to staff, Mr Stausholm said he expected a replacement to be named before Rio released its September quarter production results.
“As this work progresses, it is business as usual, and there will be plenty of time for us to reflect on our shared achievements and look to the future. So for now, I will sign off by simply saying thank you to you all,” he wrote.
The new chief executive will have to navigate a tricky transition in iron ore as Rio spends $US13bn on its next tranche of mines in WA, deliver on his strategic leap into lithium, and build on growth plans in copper that centre on South America and Mongolia.
Rio said a rigorous selection process, led by the board’s nominations committee, was already underway.
Rio declined to comment on speculation of a falling out between the chief executive and chair.
Mr Barton praised Mr Stausholm for his work in restoring Rio’s reputation but alluded to how the company needed to “double down” on operational performance.
“Under Jakob’s leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory,” Mr Barton said.
“Our focus on these things is undiminished and our strategic priorities are unchanged. This is a natural moment to appoint Jakob’s successor, as we look ahead to our next phase in which we will double down to deliver greater operational performance to realise the full potential of our assets.”
Mr Barton thanked Mr Stausholm for his “significant contribution to Rio at a critical time in its evolution”.
Mr Stausholm said it had been a privilege to lead Rio for the past four-and-a-half years.
“I would like to thank the deeply dedicated and talented people across the organisation that together have raised both operational performance and project execution. We have built on Rio Tinto’s historic strengths to deliver profitable, stable growth and significant shareholder value.”
Mr Baatar is the former head of copper. Mr Trott was chief commercial officer from 2018 to 2021, and has led the iron ore business for the past four years.
Others within Rio’s executive ranks thought to be potential contenders are Jérôme Pécresse and Mark Davies.
Mr Stausholm has spent most of 2025 visiting Rio’s global operations in what now looks like a farewell tour. He gave no indication he intended to leave at the company’s annual general meeting in Perth on May 1, saying he had been learning about Rio’s challenges and opportunities.
The next chief executive will be Rio’s fourth since 2013 when Tom Albanese was sacked in the fallout from a disastrous Mozambique coal acquisition.
Sam Walsh then spent three years in the job, followed by Mr Jacques who lasted four years. All were promoted from within Rio’s ranks.
The shake-up stunned the mining industry which had expected BHP to move first in replacing Mike Henry as it chief executive.
BHP’s leadership focus was expected to shift to finding a suitable successor for Mr Henry after it locked in former National Australia Bank boss Ross McEwan as its new chair in February.
Another diversified miner, South32, this month named Anglo American executive Matthew Daley to take over from Graham Kerr.
Mr Trott appeared at a mining conference this week where he reflected on a period when the company had lost its way.
Mr Trott said those events occurred when Rio was guilty of not being able to see problems from the perspective of others.
In his note to staff, Mr Stausholm said: “Resetting Rio Tinto’s purpose and strategy to align the group to the opportunities of the energy transition has unlocked opportunities that will provide us with a decade of profitable and sustainable growth.”
The Danish national also pointed to “reawakening our abilities in project excellence” based on progress with the Simandou iron ore project in Guinea that is set to start producing high-grade iron ore this year, a big boost in production at the Oyu Tolgoi copper mine in Mongolia and first production at the Rincon lithium mine in the Andes.
“And underpinning everything, is the work we have undertaken to better understand our culture – both the good, and the things holding us back. We have defined the values that make us Rio and taken meaningful steps towards becoming an organisation where everyone feels safe, respected and empowered to have a good day, every day,” he said.
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