Investing.com -- Rio Tinto (LON: RIO ) (NYSE: RIO ) has appointed Simon Trott as its next chief executive officer, succeeding Jakob Stausholm, who announced in May that he would step down.
Trott, currently leading the company’s iron ore division, will assume the role on August 25.
“Simon and the board are aligned that Rio Tinto’s next phase is about unlocking significant value for shareholders from our portfolio, driven by operational performance, and cost and financial discipline,” Chair Dominic Barton said.
Trott, who joined Rio more than two decades ago, previously served as chief commercial officer and has overseen the launch of the company’s largest new iron ore mine in over ten years in Western Australia. He is also spearheading a major effort to replace production volumes in the region.
Stausholm, who became CEO in 2020 following a public outcry over the destruction of the Juukan Gorge heritage site, led the company through major investments in lithium, as well as expansion in copper and iron ore.
Although Trott is seen as a steady hand within the company, some investors have voiced concern over declining ore quality in exports and challenges in meeting the upper range of production targets during his leadership of the iron ore unit.
The appointment comes as Rio Tinto pushes ahead with major growth plans, including a $13 billion investment in iron ore, several lithium ventures, and continued expansion in copper.
While the shortlist for the CEO role featured other internal contenders — among them aluminum division head Jérôme Pécresse and Chief Commercial Officer Bold Baatar — Trott emerged as the preferred choice.
But although he’s led the iron ore business for just four years, Trott was seen as a strong choice thanks to his role at the helm of Rio’s most profitable division.