6 days ago
Rio Tinto mining partner Gina Rinehart tells local lad Simon Trott to shift miner's HQ from London to Perth
Australia's richest person has suggested Rio Tinto's incoming chief should move the company's headquarters to WA and made a tongue-in-cheek dig at the mining giant's African iron ore ambitions.
Gina Rinehart, who has multiple Pilbara iron ore mining joint ventures with Rio Tinto, invoked a conversation she had with Sam Walsh in a congratulatory message to Simon Trott.
It was announced on Tuesday that Mr Trott would ascend from being Rio's iron ore boss to overseeing the miner's entire global business from August 25.
Mr Trott, a Christchurch Grammar old boy from WA's Wheatbelt, will be Rio's first Australian-born chief executive since Mr Walsh — who held the reins between 2013 and 2016.
It is understood the incoming CEO, like his predecessors in the role, will re-locate to London where Rio's head office is based.
'Congratulations to Simon! When Sam Walsh went from iron ore chief to CEO of Rio, I suggested that he transfer Rio headquarters to where it makes most of its money, WA,' Mrs Rinehart said.
'Still think this would be good for WA, and much safer than Guinea!'
Mrs Rinehart's comment about Guinea was a reference to the Simandou iron ore complex that Rio has poured more than $10 billion of investment into despite upheaval in the West African country.
Rio said on Wednesday that Simandou would ship first ore by November with up to a million tonnes setting sail before the end of 2025.
Simandou has been dubbed the 'Pilbara killer' owing to its potential to supplant the Pilbara as the world's premier region for iron ore.
Rio in response to the moniker has said Simandou is the 'Pilbara enabler'.
The Anglo-Australian company claims Simandou allows it to bring lower-grade iron ore mines in the Pilbara online and mix their output with Simandou's higher-grade ore.
The mixed iron ore product is then shipped to China's steel mills.
Rio has committed to spending $20b on new mines and equipment in the Pilbara by the end of 2028.
As part of this cash splash, Rio and Mrs Rinehart's Hancock Prospecting agreed last month to spend $2.5 billion extending the life of the Hope Downs mining province.
