Rio Tinto Undergoes Major Shake-Up with New CEO Simon Trott at Helm

Rio Tinto's new CEO, Simon Trott, has announced a shake-up of the miner's operations and leadership team. The company will review the future of its borates and iron and titanium divisions and reorganize into three core units: iron ore, aluminum and lithium, and copper. A new leadership team will also be appointed, with Sinead Kaufman leaving the company later this year and the role of Australia chief executive being eliminated.

Rio Tinto's new CEO, Simon Trott, has launched a sweeping overhaul of the mining giant's operations and leadership team. The company will review the future of its borates and iron and titanium divisions, while reorganizing into three core units: iron ore, aluminum and lithium, and copper. This strategic move comes as Rio Tinto grapples with falling iron ore and lithium prices and rising costs.

Trott, who took the helm on Monday after leading the company's iron ore business, said the restructuring would simplify Rio Tinto's portfolio. Matthew Holcz has been appointed chief executive of iron ore, the company's biggest profit driver. The newly unified division will combine Western Australian operations with Iron Ore Company of Canada (IoC) and, once operational, the Simandou project in Guinea.

Richards Bay Minerals in South Africa, Canada’s iron and titanium operations, and US borates mines will be transferred to Chief Commercial Officer Bold Baatar for a strategic assessment that could lead to sales. Rio Tinto is merging its lithium business with aluminum under the leadership of French national Jérôme Pécresse, based in Montreal.

The shake-up also brings leadership changes. Kellie Parker, the chief executive of Australia who played a key role in rebuilding Rio’s reputation after sexual assault claims and the 2020 destruction of a sacred Indigenous site, is leaving the company. Minerals head Sinead Kaufman, who had been considered for the top job, is also departing.

The revamp comes as Rio Tinto grapples with falling iron ore and lithium prices and rising costs. Its July half-year profit of $4.8 billion was the lowest since 2020 and 16% lower than a year earlier. The minerals division under review has been under pressure. It generated $143 million in underlying earnings in 2024, down from $312 million in 2023, and remained cash-flow negative for two straight years as growth spending outpaced revenue. Borates, used in glass and industrial cleaners, and titanium dioxide, a pigment for paints and ceramics, have both faced weak demand and prices.

Analysts at RBC Capital Markets said the scope of the review appeared limited, noting they had expected possible divestments in aluminum, iron ore, and lithium. They described the review of borates and titanium as “low-hanging fruit” in a portfolio facing competing demands for lithium investment.

Mining major Rio Tinto has placed its Richards Bay Minerals (RBM) operations in KwaZulu-Natal, along with its Canadian iron and titanium operations and US borates mine, under strategic review as part of an operational shake-up by new CEO Simon Trott. The company on Wednesday announced a new operating structure that consolidates its activities into three business units and shifts its Borates and Iron and Titanium divisions to the portfolio of COO Alf Barrios for review.

RBM, a producer of titanium dioxide (TiO2) slag, rutile, zircon, and pig iron, is Rio Tinto’s most significant South African asset. The Zulti South project, which was suspended in 2019 amid community unrest, is central to RBM’s long-term future. Rio Tinto has previously said that without the expansion, RBM’s existing operations would decline, reducing production capacity and affecting jobs.

In addition to RBM, the group’s Iron and Titanium business includes the Rio Tinto Iron and Titanium, or RTIT, operations in Quebec. Rio Tinto’s titanium operations have been under pressure, with output falling 11% last year to 990,000 t amid weaker demand. The company ran only six of nine furnaces in Quebec and three of four at RBM in 2024. In the first half of this year, it produced 500,000 t of TiO2 slag and has guided full-year production of between 1-million and 1.2-million tonnes.

The Borates business, meanwhile, operates the Boron mine in California. Boron is a mineral essential to plant growth and widely used in fertilisers, glass manufacturing, and wood protection. Rio Tinto said that an update on the outcome of the strategic review of these assets would be communicated “in due course.” “Throughout this review process, these businesses will continue to focus on running safely and profitably to meet customer commitments,” said the company.

Rio Tinto, under new CEO Simon Trott, is restructuring operations to focus on core assets like iron ore, aluminum-lithium, and copper. Key moves include integrating Guinea's Simandou mine with Australian iron ore operations and streamlining high-demand battery metal divisions. Leadership changes see Matthew Holtz leading iron ore while Cynthia Kaufman exits, reflecting strategic simplification and cost control. The overhaul aims to strengthen resilience against global challenges, prioritizing operational efficiency for long-term growth.

The restructuring is seen as a critical step in the new management's efforts to drive the company's transformation, following the dismissal of the previous CEO, Jacob Stausholm, earlier this year. Stausholm, a Danish national, had initially helped the company overcome some challenges, but the board believed that a more innovative strategic approach was needed. The restructuring is part of a broader strategy to enhance the company's resilience and adaptability in the face of global challenges, including geopolitical instability and supply chain disruptions. By focusing on its core assets and simplifying its operations, Rio Tinto aims to position itself for long-term growth and success in the global mining industry.

References:
[1] https://www.mining.com/rio-tinto-overhaul-cuts-to-three-units-axes-execs-reviews-mines/
[2] https://www.miningweekly.com/article/rio-tinto-weighs-future-of-richards-bay-minerals-quebecs-rtit-and-us-mine-2025-08-27
[3] https://www.ainvest.com/news/rio-tinto-restructures-operations-ceo-focuses-core-assets-2508/