Rio Tinto’s new CEO carves path to growth for mining heavyweight
The new chief executive of Rio Tinto PLC said he wants to grow the commodities company by both building and buying mines and will cast the net wide for commodities that could help to power its next phase of expansion.
In doing so, Jean-Sébastien Jacques is taking a different approach from major rivals.
As a downturn in world commodities markets extends into its fifth year, most of the world’s top minerals exporters have been refocusing on fewer assets and commodities, a move they predict will make them stronger.
Anglo-Australian rival BHP Billiton Ltd. BLT, -2.17% BHP, +0.90% BHP, -0.22% last year carved off a large chunk of mine pits and smelters in places from Australia to Africa, shifting its focus to just four commodities. Anglo American PLC AAL, -2.32% is in the midst of a radical restructuring that involves selling more than half its mines, including once-prized coal deposits, to focus on a handful of its highest-margin businesses.
“We know that we need to grow,” Jacques, who became CEO of Rio Tinto RIO, -1.81%RIO, +1.55% RIO, -0.82% on Saturday, told The Wall Street Journal. “The growth strategy of Rio going forward will be: Build and buy smart.”
Two weeks ago, Jacques shook up the company structure, bidding adieu to iron-ore chief Andrew Harding, who had also been viewed as a CEO candidate, and reshuffling operational divisions. He succeeded Sam Walsh, who had been widely credited with turning around Rio’s fortunes in his three years on the job, mainly by cutting costs and investment.
source: http://www.marketwatch.com/story/rio-tintos-new-ceo-carves-path-to-growth-for-mining-heavyweight-2016-07-04?link=sfmw_tw