Rio Tinto Announces Strategic Overhaul, Streamlining Operations for Enhanced Shareholder Value

Rio Tinto (LON:RIO) today unveiled a new operating model and executive leadership team, signaling a strategic shift aimed at simplifying the organization and driving sustainable, profitable growth.

The move is said to be designed to increase accountability and focus on high-potential opportunities, ultimately delivering greater long-term shareholder value.

The company explained in a press release that the core of the restructuring involves streamlining the product group structure into three key world-class businesses: Iron Ore, Aluminium & Lithium, and Copper.

The focused approach is intended to position each business for operational excellence, maximize competitive advantages, and unlock growth potential, while leveraging the benefits of Rio Tinto's diversified portfolio.

Matthew Holcz has been appointed Chief Executive Iron Ore, leading the newly unified Iron Ore product group.

This portfolio integrates Western Australian Iron Ore operations with the Iron Ore Company of Canada and, upon completion, the Simandou project in Guinea. The aim is to combine the established performance of existing operations with the potential of Simandou, sharing best practices and technologies across the entire Iron Ore portfolio.

Rio Tinto's Lithium business will now be integrated into the Aluminium product group, led by Jérôme Pécresse. The combined group will consist of Atlantic Operations Aluminium, Pacific Operations Aluminium, and Lithium.

Rio Tinto said the move aims to create a streamlined structure centered on processing capability and downstream exposure, enabling the shared deployment of productivity initiatives.

Katie Jackson will lead the company's Copper business, focusing on the ramp-up of Oyu Tolgoi, stabilizing Kennecott, and advancing future options like the Resolution project in the USA and partnerships such as Nuevo Cobre in Chile. The Copper business is strategically positioned to capitalize on the global energy transition.

Rio Tinto Chief Executive Simon Trott emphasized the company's commitment to safety and a sharper focus on compelling opportunities.

Trott stated that the simplified business structure will enable the company to deliver new standards of operational excellence and value creation. He also highlighted the importance of a disciplined approach to operational performance and capital investment.

The company's Borates and Iron & Titanium businesses will undergo strategic review under the Chief Commercial Officer's portfolio.

Sinead Kaufman will depart Rio Tinto at the end of October 2025, after nearly 30 years. Trott thanked Kaufman for her significant contribution, particularly in leading the divestment from coal and establishing the company's lithium operations.

The role of Chief Executive Australia will also be phased out, with responsibilities for external relationships and stakeholder engagement transitioning to a new head of Australia role.

Kellie Parker will remain in her position during a transition period, reporting to Simon Trott. Trott acknowledged Parker's transformational leadership in Australia, particularly in setting the company on a path towards better community partnerships.