THE world’s biggest mining companies are undergoing an unprecedented leadership overhaul as investor impatience with mergers and acquisitions features as a major reason for change at the top, said the Financial Times in an article on Monday.
George Cheveley, portfolio manager at investment group Ninety One, said M&A would remain high on the agenda across the big miners, noting “frustration in boards” about the need to move faster. “There’s a feeling that they need someone who can be more assertive with M&A,” he told the newspaper.
All four of the world’s largest iron ore producers are either undergoing or poised for leadership shake-ups. Rio Tinto announced Jakob Stausholm’s departure after almost five years as CEO, surprising investors and senior figures at the Anglo-Australian company. The board’s lack of a ready successor raised eyebrows across the industry.
BHP, the world’s largest miner, is expected to seek a new CEO next year when Mike Henry steps down, whilst Brazil’s Vale welcomed new head Gustavo Pimenta late last year. Australia’s Fortescue has also shuffled its top leadership.
The pace of change “is unprecedented, in terms of that turnover, in such a short period of time”, said Bob Brackett, mining analyst at Bernstein.
This new generation will lead an industry at a crossroads, as demand for iron ore—traditionally their most profitable product — flatlines and miners pivot to metals linked to high-tech industries and the energy transition.
The race to secure copper access has driven several unsuccessful mega-deal attempts. BHP’s £39bn bid for Anglo American was rejected, whilst Glencore and Rio held secret merger talks that failed to progress. Rio’s board and Stausholm reportedly disagreed on the Glencore merger.
At Rio, internal frontrunners for the top job include Simon Trott, head of iron ore operations, Jérôme Pécresse, head of aluminium, and chief commercial officer Bold Baatar. The selection process is well under way, with an appointment expected later this year.
Speaking at the opening of Rio’s Western Range iron ore mine, Stausholm said there had been “no misalignment” with the board but added it was “the right time to look for a successor”.
