Rio Tinto Reshapes Portfolio Under New CEO Simon Trott
Rio Tinto CEO Simon Trott Unveils Major Overhaul, Consolidates Divisions and Reviews Non-Core Assets
Rio Tinto’s new chief executive, Simon Trott, has announced a sweeping restructuring of the mining giant, consolidating its business into three core divisions—iron ore, copper, and aluminium–lithium—while placing several non-core assets under strategic review.
Trott, who officially assumed leadership this week after previously heading Rio Tinto’s iron ore business, said the changes are aimed at simplifying the company’s structure and sharpening its portfolio focus.
Iron Ore Division: Matthew Holcz has been appointed chief executive of iron ore, Rio Tinto’s most profitable unit.
The unified division will bring together operations in Western Australia, the Iron Ore Company of Canada, and eventually the Simandou project in Guinea.
Aluminium–Lithium Division: Jérôme Pécresse, based in Montreal, will oversee the newly combined aluminium and lithium business.
This division will include Atlantic Operations Aluminium, Pacific Operations Aluminium, and lithium projects.
Copper Division: Remains a core pillar of Rio Tinto’s strategy, as demand for the metal continues to rise with the global energy transition.
Several mineral operations are being transferred to Chief Commercial Officer Bold Baatar, who will lead a strategic review that could result in divestments. These include:
Richards Bay Minerals in South Africa
Canada’s iron and titanium operations
US borates mines
The overhaul is also accompanied by significant leadership exits. Kellie Parker, Rio Tinto’s chief executive for Australia who played a key role in repairing the company’s reputation after the Juukan Gorge scandal and internal misconduct allegations, will leave the company.
Sinead Kaufman, head of minerals and once considered a contender for the CEO role, is also departing.
The restructuring comes at a challenging time. Rio Tinto’s half-year profit for July fell to $4.8 billion, its lowest since 2020 and down 16% year-on-year, pressured by weaker iron ore and lithium prices alongside rising operational costs.
The minerals division under review has struggled with declining returns, reporting $143 million in underlying earnings in 2024, compared with $312 million in 2023.
The unit has remained cash-flow negative for two consecutive years as spending on growth projects outpaced revenue.
Demand weakness for borates—used in glass and cleaning products—and titanium dioxide, a pigment for paints and ceramics, has further weighed on performance.
Analysts at RBC Capital Markets noted the review focuses mainly on smaller, less profitable operations, calling them “low-hanging fruit.” They said they had expected a broader evaluation of the aluminium, iron ore, and lithium businesses, given competing investment demands in lithium.
With its streamlined structure, Rio Tinto is positioning itself to strengthen its core commodities portfolio while weighing options for underperforming assets.
