(This story has been refiled to expand the company name of Rio Tinto in the headline)
By Melanie Burton, Clara Denina
MELBOURNE/LONDON (Reuters) -As Rio Tinto searches for a new CEO, the miner will cast a wide net due to a very short list of possible internal candidates, sources said, in contrast with laser-focused succession planning at its main rival BHP.
Rio, the world’s largest iron ore miner, took investors by surprise on Thursday when the company announced CEO Jakob Stausholm will step down later this year once a successor is appointed. It gave no reason for the move.
One source familiar with the matter said the board had held meetings on the succession in recent months with the help of executive recruitment firm MWM Consulting, vetting internal candidates including Bold Baatar, Simon Trott and Jerome Pecresse, while looking for external leaders too.
“The next generation of big mining leaders will have to be more aggressive than the last. There’s less copper around and they will have to take bigger risks to get it,” said one person who consults for top executive appointments in the industry.
Both mining giants are in the midst of changing CEO at a critical juncture as the hunt for copper is crucial due to demand for use in multiple technologies including artificial intelligence and the clean energy transition.
A febrile atmosphere characterised 2024 as diversified miners failed in pulling off big ticket M&A – something both companies might hope to succeed in with new leadership. Among Rio’s internal suite of candidates, Singapore-based Baatar, Rio’s chief commercial officer, has found some strong support.
“We believe Baatar’s communication, portfolio knowledge and problem-solving skills (as showcased during his role at Oyu Tolgoi mine in Mongolia and Simandou mine in Guinea) would prove key in leading Rio,” RBC analysts said in a note.
The Mongolian has worked in leadership positions in Rio’s marine, iron ore sales and marketing divisions. He joined the Executive Committee in 2016, running the Energy & Minerals product group, before heading its copper division.
Head of iron ore Trott, a more than 20-year veteran at Rio, has brought to market its biggest new iron ore mine in more than a decade, in Australia, and is building out a huge programme of replacement tonnes.
But he has faced pushback from investors because the quality of ore in Rio’s exports has dropped during his tenure and has also fallen short of production targets.
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Pecresse was appointed head of the aluminium division in October 2023, joining the company from General Electric (GE) Renewable Energy. He worked at Alstom and Imerys prior to that, and is seen internally as a very sharp, but understated leader. His wife is French politician Valerie Pecresse.
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