Latest news with #Stausholm
Yahoo
28-05-2025
- Business
- Yahoo
Rio Tinto split with CEO Stausholm over conflicting priorities, sources say
By Clara Denina, Ernest Scheyder and Melanie Burton (Reuters) -Rio Tinto's board and Jakob Stausholm agreed to part ways last week amid mounting concerns the CEO was reluctant to follow board priorities, including focusing on costs, after years of expansions in lithium, copper and iron ore, three sources said. Rio, the world's second-largest listed mining company, surprised investors last week by announcing Stausholm would step down later this year when a successor is appointed. No reason for Stausholm's exit was given, and sources said it was not tied to any scandal. The CEO had as recently as two weeks ago given no indication of his departure at a major industry conference in Spain, according to three sources who attended. Reuters spoke with six people who were familiar with board considerations, or who had been briefed on them, or briefed by management. They agreed to speak on condition of anonymity to discuss sensitive internal matters or private conversations. Rio Tinto declined to comment for this story, while Stausholm did not respond to requests for comment. Stausholm took the helm at Rio in 2021 at a low point in the company's history after his predecessor was sacked. The Dane started his tenure with a listening tour of the company's global portfolio, which stretches across every continent but Antarctica. He led a turnaround in the miner's fortunes by resetting relationships in Guinea and Mongolia to bring its next wave of iron ore and copper projects online. Stausholm also inked three major lithium deals in the past year. As his successes mounted, one source said Stausholm became more likely to push back on board suggestions and too quickly dismissed opportunities the board felt could have been better explored. One of those opportunities included Stausholm's rejection of an approach by Glencore executives last year seeking a potential merger, according to a person familiar with the matter. Another related to reviewing options around the stake of its largest UK shareholder Chinalco, which came up with investor pressure for the miner to review its dual Anglo-Australian share market listing, said the first source. While the board backed Stausholm's investments and strategic decisions, it held concerns that rising costs had to be dealt with now rather than in a few years' time, two of the sources said. Rio's average headcount has climbed by 22% to around 60,000 people since Stausholm's appointment in 2021, according to its most recent annual report. Meanwhile, revenue has dropped more than $10 billion over that time, with prices of its key profit generator, iron ore, expected to fall further in coming years. The board told Stausholm that he must put more focus on cost cuts and operational excellence, but he was resistant and they decided to part ways, three of the sources said. "Nothing else changes. The board is happy with the growth options, they are happy with lithium, the strategy is the same," one source said. DOUBLING DOWN Some investors criticised Rio for overspending on its $6.7 billion buy of lithium miner Arcadium after a plunge in prices for the battery metal. That deal was followed by more than $1 billion more in spending on two projects in Chile earlier this month. With the lithium market in the doldrums, it will take years to know whether Stausholm's bet will have paid off, although demand projections for the metal are strong into the next decade. Rio's lithium joint venture with Codelco "aligned with its growth and value creation strategy," Goldman Sachs, which has a "buy" recommendation on the stock, said last week. Rio investor Pendal Group has raised concerns about additional staffing costs at both Rio and larger rival BHP, said Pendal investment analyst Jack Gabb. As recently as February, Stausholm said that costs "hadn't been a focus," Gabb said. Rio's ballooning costs had been flagged internally for some time, including at a recent executive retreat in Australia by CFO Peter Cunningham, a source with direct knowledge said. Despite those warnings, Stausholm saw himself as a strategic leader rather than a cost-cutter, with the board increasingly preferring the latter, the person added. "Rio's got amazing assets, but a bloated bureaucracy, full of people looking for work to do. That's just not sustainable," the person said. Of Rio's internal bench of potential successors, iron ore head Simon Trott, Chief Commercial Officer Bold Baatar, and aluminum division boss Jerome Pecresse are seen as potential replacements, all of the sources said. Pecresse may have an advantage given his management style focused on cost-cutting, one of the sources said. "Rio doesn't need another visionary right now," the source added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Rio Tinto CEO to Step Down
On May 22, Rio Tinto Group (NYSE:RIO) announced that CEO Jakob Stausholm will be leaving his position later this year. This transition will happen as the mining giant pushes forward with significant expansion projects. Drills extracting gold from a gold mine, revealing the company's gold mining operation. Stausholm has been part of Rio Tinto since 2018 when he came on board as the Chief Financial Officer. He later took the company's reigns after which he 'reset the company's strategy to align the group to the opportunities of the energy transition and shaped a pathway to a decade of profitable growth.' Chair Dominic Barton emphasized that Stausholm has 'restored trust with key stakeholders' and built a strong foundation for future growth. Most importantly, Barton said, the CEO's succession will allow Rio Tinto to enter its next phase, focusing on operational excellence. As that happens, the company has revealed plans to expand its Amrun bauxite mine on Cape York Peninsula. The Kangwinon project aims to nearly double the bauxite production capacity from Rio Tinto's (NYSE:RIO) Weipa Southern operations. This $1.9 billion expansion would generate over 800 construction jobs and could increase annual production by up to 20 million tons. Rio Tinto (NYSE:RIO) is a global mining company that explores, mines, and processes mineral resources. The company operates through segments like Iron Ore, Aluminum, Copper, and Minerals. It produces iron ore, bauxite, alumina, copper, gold, silver, diamonds, borates, titanium dioxide, and lithium. While we acknowledge the potential of Rio Tinto Group (NYSE:RIO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIO and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Age
23-05-2025
- Business
- The Age
ASX:RIO Rio Tinto boss Jakob Stausholm to exit the $164b miner after almost five years at the top
Mining giant Rio Tinto has started a global search to replace chief executive Jakob Stausholm, who will step down from his position after spending almost five years at the top. The $164 billion dual-listed company, which has shareholders in London and Australia, said it was conducting a search to replace Stausholm but did not provide a reason for his departure, other than saying it was a 'natural moment' for the miner to appoint a successor. Rio's chairman Dominic Barton (left) and chief executive Jakob Stausholm at a mining summit in Perth. Credit: Trevor Collen '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,' Rio's chair Dominic Barton said, thanking the Danish national for his contribution. '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 realise the full potential of our assets,' Barton said. Rio is one of the world's biggest exporters of iron ore and suppliers of aluminum. The statement on Stausholm's departure came just an hour before Rio's rival Fortescue announced the retirement of the head of its energy division, Mark Hutchinson, and chief operating officer Shelley Robertson. Stausholm stepped up as boss of Rio in January 2021 after the disastrous destruction of two 46,000-year-old Juukan Gorge rock shelters in the Pilbara unleashed a wave of global condemnation, triggered a federal parliamentary inquiry in Australia, and plunged the company into crisis, prompting the exit of then CEO Jean-Sébastien Jacques and two other senior executives. The miner is still improving its cultural heritage processes and relationships with traditional owners. Soon after his appointment, Stausholm was plunged into an overhaul of Rio's workplace culture after then sex discrimination commissioner Elizabeth Broderick's investigation found a culture of bullying, sexual harassment, and discrimination. The company has focused on metals crucial to the energy transition, ramping up its copper output and, unlike its major peers, targeting lithium as a key growth area, buying projects in Argentina and Australia.
Time of India
23-05-2025
- Business
- Time of India
Rio Tinto CEO Jakob Stausholm to step down in surprise move
This is a representative AI image (Pic credit: Lexica) Jakob Stausholm, the CEO of mining giant Rio Tinto, will step down later this year, the company announced on Thursday, marking a surprise move. Stausholm, who led the company through a period of significant cultural and strategic transformation, will remain in his role until a successor is named. Rio Tinto did not specify the reason for Stausholm's departure, saying only that the succession process is already underway and this was deemed "a natural moment" for leadership change. Analysts, however, expressed surprise at the timing and lack of a clear rationale. "This news comes as a big surprise, and in our view was not expected," said Richard Hatch , an analyst at Berenberg. "It does not feel that natural to us." Stausholm took the helm in late 2020 following the destruction of the Juukan Gorge Aboriginal heritage site in Western Australia, an incident that triggered widespread condemnation and led to the resignation of his predecessor. One of his first major actions as CEO was to commission a comprehensive review of the company's workplace culture, which exposed systemic issues, including racism, bullying and harassment. Under his leadership, Rio Tinto committed to improving its environmental, social and governance (ESG) standards and pivoted toward future-facing minerals, most notably lithium. The company has made several strategic investments in battery metal, including the Rincon project in Argentina, a $6.7 billion acquisition of US-based Arcadium Lithium, and a $900 million investment in the Maricunga lithium project in Chile through a partnership with Codelco. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trade Bitcoin & Ethereum – No Wallet Needed! IC Markets Start Now Undo "We had expected Mr Stausholm to remain with the company and drive the integration of the lithium business, so his exit comes as a surprise," Hatch added. The company has yet to name a successor, but internal candidates reportedly include chief commercial officer Bold Baatar, head of iron ore Simon Trott, and aluminium division head Jerome Pecresse. However, the board is also expected to conduct an external search. The process may be further complicated by speculation that BHP CEO Mike Henry could also be stepping down soon. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News.com.au
23-05-2025
- Business
- News.com.au
Monsters of Rock: The West is talking the talk on critical metals, but it ain't walking the walk
Since 2020 critical minerals refining has become even more concentrated among the large producers, especially China Experts warn little will change without policy intervention Rio boss Stausholm announces exit, keeps picking up lithium on the way out Global critical minerals supply chains are becoming even more concentrated years after the International Energy Agency sounded the alarm on the domination of battery metals by its key suppliers. Coming as the world seeks to ween off China's dominance in the supply of metals key to the energy transition, defence and more, notably via the executive orders thrown down by Donald Trump in the heat of the US-China trade war, the IEA now says market forces will not address the imbalance. This has heightened the risk of supply shocks, notably from trade disruptions. China has infamously weaponised its dominance in minerals largely ignored by Western countries like heavy rare earths, gallium and germanium to place export controls in recent years. "Even in a well-supplied market, critical mineral supply chains can be highly vulnerable to supply shocks, be they from extreme weather, a technical failure or trade disruptions,' IEA executive director Fatih Birol said on the release of its 2025 Global Critical Minerals Outlook. 'The impact of a supply shock can be far-reaching, bringing higher prices for consumers and reducing industrial competitiveness.' According to the IEA, some 55% of strategic minerals tracked by the group are subject to export controls. Incumbent producers led by China in cobalt, graphite and rare earths and Indonesia in nickel, have flooded the market and kept a lid on prices. The average market share of the top 3 refining nations in the key critical minerals tracked by the IEA rose from 82% in 2020 to 86% in 2024, with 90% of the supply growth in the aforementioned commodities added by China and Indonesia. Where is it going from here? The IEA projects we'll see some outsiders eat into this supply chain dominance over the next 15 or so years. But the way we're going it's not much. For rare earths, the top three mining countries (China, Australia and Myanmar) are projected to remain stable at 86% by 2040. Refining will reduce from 92% to just 82% controlled by the top three producers, mainly China. On a general basis, the average share of the top three refiners across a swathe of commodities including copper, nickel, lithium, graphite, rare earths and cobalt is expected to decline to 82% in 2035. That puts us, effectively, back where we were in 2020. "Major risk areas for this broader group of strategic minerals include high supply chain concentration, price volatility and by-product dependency," the IEA report authors noted. "China is the dominant refiner for 19 of the 20 minerals analysed, holding an average market share of around 70%. Three-quarters of these minerals have shown greater price volatility than oil, and half have been more volatile than natural gas." Even with higher prices that could incentivise non-Chinese production, that could pose challenges to growing new markets, especially in the world of EV metals. A sustained supply shock could increase global battery pack prices by as much as 40-50% the IEA says. "Prolonged supply disruptions could widen cost disadvantages for other battery manufacturers vis-à-vis China, potentially hindering efforts to diversify manufacturing supply chains," the IEA warns. Experts say it shows how crucial government action is. "Even with the reduction in market concentrations from 2024 to 2035 across most refined critical minerals, the top 3 producers of refined rare earths, graphite and lithium control 92%, 90% and 85% of supply respectively," Commbank's Vivek Dhar said in a note. "These anticipated outcomes underscore the need for urgent policy intervention to diversify critical mineral supply chains." Rio's fresh path One of the biggest supporters of that on the mining side is global giant Rio Tinto (ASX:RIO), which has been reinvented since Jakob Stausholm entered as CEO in 2021. Stepping up from the CFO role in the wake of the Juukan Gorge scandal, the Dane has shown a steady hand in his efforts to revive trust with indigenous groups and foreign governments. But he's also reshaped Rio's portfolio, showing far more daring than competitors like BHP in the company's efforts to tap into the energy transition. Like BHP, Rio has focused on growing copper output in a bid to diversify from the iron ore market that has become the fulcrum around which the world's biggest miners delivered value for two decades. But it has also made significant steps via M&A and R&D in lithium, where the miner could be the world's second largest producer by 2035, scandium and gallium. Rio has also signalled an interest in other battery metals like graphite, a key focus of its near 20% investment in Malawi-focused graphite and natural rutile developer Sovereign Metals (ASX:SVM). Even with Stausholm's decision to transition out of the CEO's role on Thursday, which will occur by the end of this year, the company's counter-cyclical play in the lithium market has continued to expand. Having paid $10bn for Argentina producer Allkem and announced a US$2.5bn investment to build the 60,000tpa Rincon brine project in the same jurisdiction, it's this week established itself as a potential major player in global top 2 producer Chile. Rio is playing the long game, it doesn't think deficits will emerge in lithium until the end of the decade. But it likes the idea of having a stranglehold on a market growing at a CAGR of 10% through 2040. After announcing a partnership which will see Rio contribute up to US$880m to help Chile's State owned miner Codelco develop the Maricunga Salar, it was revealed as the 51% partner chosen by fellow Chilean State company ENAMI to develop the Altoandinos project. 'We are honoured to have been selected by ENAMI as the preferred partner for the Salares Altoandinos project, which has the potential to be a world-class lithium development," Stausholm said overnight on Thursday. 'We welcome the opportunity to develop our partnership with ENAMI, building on our interests in Nuevo Cobre and Salar de Maricunga, and to support Chile's position as one of the world's leading producers of minerals critical to the energy transition.' Lithium prices have not been so rosy, with lithium carbonate falling to US$8350/t overnight according to Fastmarkets. Spot lithium carbonate was fetching more than US$80,000/t in late 2022. Spodumene concentrate, the main feedstock produced by WA miners, was trading at US$645/t, around four year lows. Rio shares were 1% down on Friday morning. The ASX 300 Metals and Mining index rose 1.17% over the past week. Which ASX 300 Resources stocks have impressed and depressed? Making gains Adriatic Metals (ASX:ADT) (silver) +32.9% West African Resources (ASX:WAF) (gold) +19.8% Predictive Discovery (ASX:PDI) (gold) +19.7% Chalice Mining (ASX:CHN) (PGEs) +19% Eating losses Coronado Global Resources (ASX:CRN) (coal) -32.9% Liontown Resources (ASX:LTR) (lithium) -16.5% Pilbara Minerals (ASX:PLS) (lithium) -13.4% Mineral Resources (ASX:MIN) (lithium/iron ore) -9.7% Adriatic Metals was the biggest gainer, after revealing an approach from Dundee Precious Metals for a cash takeover of the London and ASX listed owned of Bosnia's Vares silver mine. Sky News UK suggested the price could clock in at over £700m (A$1.46bn). Gold stocks were also in favour as prices broke above US$3300/oz for the first time since the US and China appeared to normalise trade relations. Liontown fell from its frothy highs of last week along with other lithium producers as prices paid for WA spodumene dropped below US$650/t for the first time since 2021. Coronado shares fell as reports emerged in The Australian's Dataroom section that barrel-scraping Czech billionaire Pavel Tykac could move to secure the struggling met coal miner on the sly by purchasing its debt. From highs of $2.34 in 2022, when the Russian invasion of Ukraine sent coal prices and miners sky high, its shares are now worth just 12c.
