Rio Tinto said Chief Executive Jakob Stausholm will step down later this year, and that it has started the process for appointing his successor.
Stausholm has led the world’s second-biggest mining company since the start of 2021, brought into the top job as the company battled to repair its reputation with investors, lawmakers and indigenous groups.
His predecessor, Jean-Sébastien Jacques, was ousted after the miner destroyed ancient rock shelters in Australia containing a trove of artifacts that indicated they had been occupied by humans more than 46,000 years ago.
Stausholm has sought to pivot the giant mining company, which relies on steel ingredient iron ore for the bulk of its profits, to increase output of commodities expected to be essential for the energy transition.
Stausholm’s successor will take the helm at a time when the company is ramping up production of critical minerals, including a new lithium business it recently acquired via a $6.7 billion acquisition of Arcadium Lithium. It is also preparing to start up a big African iron-ore development that could make its existing mines in Australia less profitable should the project weaken global iron-ore prices.
“This is a natural moment to appoint Jakob’s successor, as we look ahead to our next phase in which we will double down to deliver greater operational performance to realize the full potential of our assets,” Rio Tinto Chair Dominic Barton said Thursday.
The company recently fended off an activist bid for an independent review of the miner’s dual-listed structure.
Palliser, a U.K.-based hedge fund, wants Rio Tinto to become a wholly Australian company with a primary listing in Sydney. It argues that Rio Tinto’s structure is outdated and inefficient, restricting the miner’s ability to pursue stock-based deals and fully utilize Australian tax credits-claims that the miner rejected.
The company said it will continue to engage with shareholders on the issue.
Stausholm, who had previously been Rio Tinto’s chief financial officer, sought to rebuild trust with traditional owners, communities and lawmakers after the Juukan Gorge caves were destroyed by the company as part of an expansion of a big iron-ore mine in Western Australia.
Rio Tinto said that Stausholm, who joined the company in 2018, would continue to lead the company while the process to replace him continues.
“Under Jakob’s leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory,” said Barton.
“Our focus on these things is undiminished and our strategic priorities are unchanged.”
