Melbourne - Rio Tinto Group, the world’s second-biggest mining company, named new heads to lead its key iron ore and copper divisions as its incoming top executive prepares to take up his post next month.
Chris Salisbury, 49, becomes head Rio’s top-earning iron ore division from July, switching from his current role in charge of copper and coal, the London-based company said on Tuesday in a statement. Arnaud Soirat, 51, takes a new role in charge of copper and diamonds in a re-organisation of the producer’s asset portfolios into four product groups.
Rio in March named then copper division head Jean-Sebastien Jacques to replace CEO Sam Walsh in a move regarded as a pivot toward growth after years of aggressive cost-cutting amid waning prices and faltering demand in China. In February, BHP Billiton, the biggest miner, overhauled its management structure and replaced the heads of its iron ore and petroleum divisions.
Mining companies including Rio and BHP are rethinking organisational structures as their priorities shift toward potential investment and output growth, Ben Davis, a London-based analyst at Liberum Capital, said by phone. “It’s setting out your stall for what you see as important going forward,” he said. “For Rio, that’s aluminium, iron ore and copper.”
‘Stronger structure’
Rio’s board and its partners last month approved a $5.3 billion expansion to more than double output at the Oyu Tolgoi copper mine in Mongolia.
The reorganisation of Rio’s portfolio leaves aluminum assets under the charge of Alfredo Barrios and combines copper and diamonds operations. Salisbury’s portfolio will focus on the producer’s iron ore operations in Western Australia, with mines in Canada overseen by a energy and minerals unit led by Alan Davies that will also manage coal and uranium assets.
“Our strategy, commitment to balance sheet strength and focus on shareholder returns will not change,” Jacques said in a statement. “We are strengthening our structure and delivery by placing our assets at the heart of the business to drive improved performance.”
Andrew Harding, the current head of the iron ore division and regarded as a rival to Jacques for the CEO post after a 24-year career with Rio, will leave the company from next month, according to the statement. Walsh, appointed as CEO in 2013, is scheduled to retire on July 1, Rio said in March. Soirat is currently aluminium primary metal president.
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