Rio Tinto Unveils New Organizational Structure and Executive Team
Beginning in July, Rio Tinto’s product group structure will be adjusted to better align the company’s assets with its business strategy.
Beginning in July, Rio Tinto’s product group structure will be adjusted to better align the company’s assets with the business strategy to help drive further efficiencies and optimize performance. The group’s assets reportedly will be at the center of the business and will be supported by efficient and agile global functions.
“In the face of testing times for the industry, Rio Tinto is performing remarkably well,” said Jean-Sébastien Jacques, CEO. “Our ambition is to deliver superior performance day-in and day-out so that we create value for our shareholders and communities now and over the long term. Our strategy, commitment to balance sheet strength and focus on shareholder returns will not change; but we are strengthening our structure and delivery by placing our assets at the heart of the business to drive improved performance. I am pleased to unveil our new executive team, which represents seven nationalities and is as diverse as it is experienced. Each new team member has more than 20 years of experience in the resources sector, which complements the deep expertise of the existing executive team. We will work together with all of our employees around the world to build an even stronger company, well-positioned for delivering returns and building growth.”
Rio Tinto’s organizational structure will include four product groups: Aluminum; Copper and Diamonds; Energy and Minerals; and Iron Ore. These groups will be complemented by a newly shaped Growth and Innovation group, which will focus on future assets and technical support.
Under the new structure, aluminum will retain its focus on safety, cash and value creation from its bauxite, alumina and aluminum businesses. Alfredo Barrios will remain as chief executive, based in Montreal. Iron Ore will be exclusively focused on the company’s iron ore operations in Western Australia. Chris Salisbury, currently acting Copper and Coal chief executive, will become Iron Ore chief executive, based in Perth. Copper and Diamonds will combine two businesses into a single product group, which will help to maximize its technical underground mining expertise. Arnaud Soirat, currently Aluminum Primary Metal president and CEO, will join the executive committee as Copper and Diamonds chief executive, and will be based in London. Energy and Minerals will reshape Alan Davies’ current portfolio, bringing together Rio Tinto’s coal, uranium, salt, borates and titanium dioxide businesses, as well as the Iron Ore Co. of Canada. Davies, currently Diamonds and Minerals chief executive, remains based in London.
Growth and Innovation will provide strategic leadership and technical expertise for the end-to-end delivery and management of growth from exploration to projects. Stephen McIntosh, currently acting Technology and Innovation Group executive, will take up the role of Growth and Innovation Group executive, based in Brisbane. In addition, reflecting the group’s increased focus on health and safety, accountability for safety as a discrete unit will sit with an executive committee member for the first time. Joanne Farrell, currently the global head of Health, Safety, Environment and Communities, will take on the role of group executive for Health, Safety and Environment, based in Perth. Farrell will also become managing director of Australia. Andrew Harding, currently Iron Ore chief executive, will leave the business effective July 1, 2016.
“I want to thank Andrew for his dedication and commitment to Rio Tinto after almost 25 years with the business, including six years on the executive committee,” said Jacques. “Andrew has held important roles in Australia, the United Kingdom and the United States. During his long career with the company, he has led our global Iron Ore and Copper businesses, delivering marked performance improvements. We wish him the best for the future.”
The new Rio Tinto Executive Committee will be:
- Jean-Sébastien Jacques, chief executive
- Christopher Lynch, chief financial officer
- Hugo Bague, Organizational Resources Group executive
- Alfredo Barrios, Aluminum chief executive
- Alan Davies, Energy and Minerals chief executive
- Joanne Farrell, Health, Safety and Environment Group executive
- Stephen McIntosh, Growth and Innovation Group executive
- Chris Salisbury, Iron Ore chief executive
- Arnaud Soirat, Copper and Diamonds chief executive
- Debra Valentine, Legal and Regulatory Affairs Group executive
For more information, visit www.riotinto.com.