21st Jun 2016 07:23
LONDON (Alliance News) - Anglo-Australian miner Rio Tinto PLC on Tuesday said it will realign its business structure under new Chief Executive Jean-Sebastien Jacques.
From July 2, Rio Tinto said its product group structure will shift to four operating divisions. These will be Aluminium, Copper & Diamonds, Energy & Minerals, and Iron Ore, plus a new Growth & Innovation corporate division to compliment the operating units. Rio's business previously also was split into four units, covering Aluminium, Iron Ore, Copper & Coal and Diamonds & Minerals.
Rio Tinto said the move will better-align its assets with its business strategy to drive further efficiencies in the company and optimise its performance.
"In the face of testing times for the industry, Rio Tinto is performing remarkably well. 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," said Jacques.
"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," the chief executive added.
In the Aluminium business, Rio Tinto will continue to focus on cash generation and cost-cutting from it high-quality bauxite, alumina and aluminium businesses. Alfredo Barrios will remain chief executive of the unit, based in Montreal.
The Iron Ore arm will focus exclusively on Rio's iron ore operations in Western Australia. Chris Salisbury, currently acting CEO of Copper & Coal, will become Iron Ore CEO, based in Perth. Andrew Harding, currently Iron Ore CEO at Rio, will leave the business on July 1.
The Copper & Diamonds arm will combine Rio's two marketing-led units into a single group. Arnaud Soirat will be CEO of the unit, moving from his position as Aluminium Primary Metal president.
Energy & Minerals, meanwhile, will bring together Rio's coal, uranium, salt, borates and titanium dioxide businesses, plus the Iron Ore Co of Canada division. Alan Davies will be CEO of the unit.
Shares in Rio were down 1.9% to 2,001.00 pence early Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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