Rio Tinto CEO Stausholm denies rift with chairman as leadership transition looms

Rio Tinto CEO Jakob Stausholm denies reports of a rift with Chairman Dominic Barton, emphasizing alignment on strategy amid leadership transition, cost concerns, and falling revenues.

Global mining giant Rio Tinto (NYSE, LSE, ASX: RIO) remains united at the top, according to outgoing CEO Jakob Stausholm, who pushed back against reports of a fallout with Chairman Dominic Barton.

Speaking publicly for the first time since the announcement of his departure two weeks ago, Stausholm told Australian media on Friday that Rio’s management and board are “absolutely aligned” on values, strategy, and performance. He added that his successor could “very well be” selected from within the company.

His comments come after a Reuters report last week claimed the board had grown concerned that Stausholm was not prioritizing cost control following years of business expansion. The report, which cited six unnamed sources familiar with board-level discussions or briefed by company insiders, fueled speculation about internal tensions at the top.

Rio Tinto shares edged 0.4% lower on Friday, closing at A$109.60 on the ASX, valuing the company at approximately A$154 billion.

Leadership amid expansion and scrutiny

Stausholm made his remarks during the opening of the Western Range iron ore project, a joint venture between Rio Tinto and China’s Baowu, located in Western Australia’s Pilbara region.

He joined Rio in 2018 and took the helm in 2021 following the destruction of sacred Aboriginal rock shelters at Juukan Gorge—an incident that triggered widespread investor and Indigenous outrage and led to the resignation of then-CEO Jean-Sébastien Jacques.

As CEO, Stausholm spearheaded efforts to diversify Rio’s portfolio beyond its Pilbara iron ore stronghold. Key milestones under his leadership include advancing the long-delayed Simandou project in Guinea, acquiring lithium producer Arcadium for $6.7 billion, and launching a $900-million lithium joint venture with Chile’s state-owned miner Codelco.

Rising headcount, falling revenues

Despite these strategic moves, Rio Tinto’s financial metrics have shown signs of strain. While the company’s workforce has grown by 22% to about 60,000 employees since 2021, annual revenues have dropped by nearly US$10 billion. With iron ore prices forecast to decline further, the board is reportedly pushing for stronger cost discipline and operational efficiency.

As Rio Tinto prepares for a leadership transition, the mining world will be watching closely to see whether the next CEO will double down on expansion or steer the company toward a leaner, more cost-focused path.