Rio Tinto’s new CEO shakes up leadership team, cuts executives
Rio Tinto's new chief executive has axed two senior female executives and appointed WA-native Matt Holcz to run its crucial iron ore division in a major leadership overhaul.
New Rio Tinto chief executive Simon Trott has put his faith in fellow West Australian Matt Holcz to run the mining giant’s all-important iron ore division and jettisoned two senior executives from the leadership team he inherited.
Mr Trott on Wednesday unveiled a leaner and meaner operating model and revamped executive team, with minerals boss Sinead Kaufman and chief executive Australia Kellie Parker shown the door.
Rio will sharpen its focus to iron ore, copper and aluminium and lithium, and has signalled all other mineral divisions are on the chopping block. The change in strategy could see Rio sell off interests in borates, titanium dioxide, scandium, diamonds and ferrous metals.
Mr Holcz joins the executive team as boss of the iron ore mines in the Pilbara, the Simandou project in Guinea and the Canadian business that produces high-grade iron ore and pellets.
The role is much bigger than the one Mr Trott previously held as boss of the WA iron ore mines, where Mr Holcz was a key lieutenant.
Mr Trott announced the changes from Guinea where he spending time with workers and the family of a contractor killed while working on the giant Simandou iron ore mine on Friday.
Frenchman Jérôme Pécresse has had lithium added to his responsibilities running the aluminium division and Katie Jackson remains in charge of copper.
Mr Pécresse and chief commercial officer Bold Baatar were considered the top internal contenders behind Mr Trott in the race to replace former chief executive Jakob Stausholm.
Mr Trott only took the reins at Rio on Monday after spending last week on a whirlwind tour of Africa, Argentina and the US, where he met president Donald Trump to discuss the future of the Resolution copper mine in Arizona and other Rio investments.
“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,” Mr Trott said on Wednesday
“It will bring greater accountability and focus to our teams, underpinned by a more disciplined approach to operational performance and capital investment.
“We have delivered resilient results this year, remain on track to deliver strong mid-term production growth, and continue to make progress against our objectives. Our focus now is on unlocking further shareholder value, putting both our capital and talent where it will deliver the greatest returns.”
Ms Parker was appointed to the then new role of chief executive Australia in 2021 – on the same day Mr Trott was named as iron ore boss - as Rio looked to strengthen relationships with traditional owners, governments and other stakeholders in the wake of blowing up 46,000-year-old rock shelters at Juukan Gorge.
He role is being terminated as part of the changes and she will leave Rio.
Ms Kaufman had a key role in Rio’s leap into lithium but her role as chief executive for minerals is also disappearing. She was the only member of the Rio executive committee with hardcore, frontline experience running mines across multiple commodities, including in the Pilbara.
Mr Trott also addressed the unusual reporting arrangements around former Arcadium chief executive Paul Graves’ appointment to run Rio’s lithium division in adding it to Mr Pécresse’s responsibilities.
Mr Graves, who was not part of the executive committee and reported directly to the former CEO, will now answer to Mr Pécresse.
Outside Rio three new core mining division, the borates and iron and titanium businesses will be moved to Mr Baatar’s portfolio for strategic review and potential divestment.
Mr Trott paid tribute to both Ms Parker and Ms Kaufman.
“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,” he said.
“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.”
The big winner from the shake up appears to be 46-year-old Holcz, who was general manager of the WA iron ore mines and acted as the boss of that business once Mr Trott became CEO in-waiting.
Mr Holcz started his career as a mining engineer in the Goldfields before joining io in 2007. He worked in London and South America for Rio before returning to his home state of WA and iron ore.
Like Mr Trott, Mr Holcz spent a large chunk of his childhood and teens living in country WA. He attended schools at Newman and Karratha in the Pilbara.
As well as the challenge nursing the Pilbara operations through a transition period that involves bringing on a new mine every year out to 2030 at a cost of about $US13bn, Mr Holcz will have carriage of Simandou where Rio has invested $US6.2bn as its share alongside Chinese partners.
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