Tag Archives: J-S Jacques

Rio Tinto CFO Jakob Stausholm wins promotion

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Rio Tinto has appointed Chief Financial Officer, Jakob Stausholm, as its new Chief Executive, effective January 1, 2021. He replaces outgoing company head Jean-Sébastien Jacques.

Since joining Rio as an Executive Director and CFO in 2018, Stausholm has played a leading role in the group’s strong performance, maintaining capital allocation discipline and delivering significant shareholder returns, while strengthening the balance sheet, Rio said.

Stausholm is an experienced global executive, with 25 years in leadership roles in capital intensive and service industries across Europe, Latin America and Asia-Pacific. Prior to joining Rio, he was Group Chief Financial Officer and Strategy & Transformation Officer of A.P. Moeller – Maersk A/S.

Previously, he was Group Chief Financial Officer of the global facility services provider ISS A/S. Before that, he spent two decades with Royal Dutch Shell in numerous financial positions globally and as Chief Internal Auditor for the group.

Rio Tinto Chairman, Simon Thompson, said: “I am pleased to announce the appointment of Jakob as Chief Executive of Rio Tinto. His blend of strategic and commercial expertise, strong values and a collaborative leadership style are the ideal qualities for our next chief executive.

“Jakob has already made a significant contribution to the performance of the group in his role as Chief Financial Officer. He has a proven track record as a senior executive with deep industrial and resources experience spanning strategy development and technology, as well as financial and risk management. He has also demonstrated the ability to build effective relationships and has a strong personal commitment to the role of business in promoting sustainable development.”

Stausholm said: “I am truly delighted and humbled to be given the opportunity to lead this tremendous company. Since I joined two years ago, I have spent extensive time at our operations, meeting our excellent people and have also engaged with many of our valued partners.

“Rio Tinto’s purpose is to produce the materials essential to human progress and I remain deeply committed to this after the difficult times we have faced during 2020. I look forward to leading Rio Tinto and working with my colleagues across the business to ensure that we maintain strong safety, operational and financial performance, while progressing our growth, sustainability and technology strategies. I am also acutely aware of the need to restore trust with Traditional Owners and our other stakeholders, which I view as a key priority for the company.”

As a result of Stausholm’s appointment, Peter Cunningham will be appointed interim Chief Financial Officer of Rio Tinto, effective January 1. Cunningham was previously Group Controller for Rio Tinto and has held a number of senior finance and leadership roles across Rio Tinto in a career spanning 27 years with the company.

Given the effective date of Stausholm’s appointment, Jacques will step down from his role as an Executive Director and Chief Executive of Rio with effect from January 1 and will leave the group on March 31, 2021.

Thompson said: “I would like once again to acknowledge J-S’s strong leadership of Rio Tinto since 2016. He leaves the group in an exceptionally strong financial position, having delivered significant shareholder returns, sector-leading profitability and value creation, and an outstanding safety performance. J-S and the team have created a very solid foundation for future success.”

Rio Tinto reinforces strategy, technology and climate change focus

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Rio Tinto has added a new role to its Executive Committee as it considers the next phase of its transformation to, it says, reinforce the company’s commitment to strategy, technology and climate change in a new era.

Peter Toth will become Group Executive, Strategy and Development with a focus on leading Rio Tinto’s transformation efforts around portfolio, climate change, and closure, working in partnership with the product group and commercial teams. He will also assume responsibility for Rio Tinto Exploration and Ventures.

Stephen McIntosh, Group Executive of Growth & Innovation and Health, Safety & Environment (HSE), has decided to retire after more than 30 years with Rio, leaving the company on September 30. McIntosh joined the company as an exploration geophysicist in 1987 and led the exploration team from 2011 to 2016, joining the Executive Committee in 2016. During his time with the company, he built strong exploration, project and technology capabilities, Rio said.

With McIntosh’s departure, Mark Davies will assume the role of Group Executive, Safety, Technical and Projects, with a focus on maintaining the company’s longstanding commitment to safety, health and environment, while further building on the company’s efforts in technology and project delivery to support operational excellence in the years ahead, Rio said.

Both Toth and Davies will join the Rio Tinto Executive Committee on October 1, reporting to Chief Executive, J-S Jacques.

Toth, a dual Hungarian and Australian citizen, joined Rio Tinto in 2014 as Global Head of Strategy. In 2015, he became Head of Corporate Development with responsibility for corporate strategy (including climate strategy) and business development. He was the Chief Executive of ASX-listed OM Holdings, an integrated manganese and silicon company, between 2008 and 2014 and, prior to this, spent 14 years with BHP Billiton in a range of roles, including the Head of Marketing for carbon steel materials. He is based in London.

Davies, an Australian citizen, brings extensive international experience gained over 25 years with Rio Tinto in Australia, the US, the UK and Singapore, Rio says. He joined the company in 1995 as a senior mechanical engineer and has worked in various operational and functional leadership roles during this time. These include Chief Commercial Officer and interim CEO for the Iron and Titanium business unit, head of Group Risk and most recently, Vice President, Global Procurement. He will move to Brisbane.

J-S Jacques said: “We remain committed to strong performance, disciplined capital allocation and a focus on value over volume as we transform our business to make the most of future opportunities in an increasingly complex world. With Peter and Mark joining the executive team we will enhance our focus in areas that will be absolutely vital for Rio Tinto’s future performance and success – strategy, technology and climate change. I welcome them both to our team.

“As we welcome our new team members we also say goodbye to Steve, who has significantly contributed to our company over many decades. We are very grateful for his support and leadership in areas from exploration to innovation. We thank him for his commitment, and I wish Steve and his family all the very best for the future.”

Rio aims for ‘net zero emissions’ from operations by 2050

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Rio Tinto has announced plans to invest around $1 billion over the next five years to support the delivery of its new climate change targets and a company objective for net zero emissions from operations by 2050.

The new targets for 2030 are a further 30% reduction in Rio Tinto’s emissions intensity from 2018 levels, and a further 15% reduction in Rio Tinto’s absolute emissions from 2018 levels.

Under these targets, Rio Tinto’s overall growth between now and 2030 will be carbon neutral, the company said.

Rio Tinto Chief Executive, J-S Jacques, said: “Climate change is a global challenge and will require action across nations, across industries and by society at large. New technologies, partnerships and effective government policies will be key in achieving this goal but today there is no clear pathway for the world to get to net zero emissions by 2050.”

Jacques said while the ambition “is clear”, the “pathway is not” and the challenge for both the world and the resources industry is “to continue the focus on poverty reduction and wealth creation, while delivering climate action”.

He added: “This will require complex trade-offs which means we all need to face up to some challenging decisions and have an honest conversation.”

Jacques concluded: “For Rio Tinto, it is about setting a long-term ambition and establishing stretching, but achievable targets, like we have done for 2030 and 2050. We are fully committed to meeting that challenge and being part of the solution.”

Rio Tinto’s second climate report, published today and guided by the recommendations of the Task Force on Climate-related Financial Disclosures, sets out how Rio Tinto plans to achieve its ambition of net-zero emissions by 2050 through action in four areas.

Produce materials essential for a low-carbon future

The production of aluminium, copper and high-grade iron ore will play a part in the transition to a low carbon economy.

Reduce the carbon footprint of operations

Rio Tinto is taking steps to enhance productivity and efficiency, as well as exploring alternative sources of energy and developing pathways to reduce emissions. In February, Rio announced a $100 million investment in a new solar plant at the Koodaideri mine in the Pilbara, Australia, as well as a lithium-ion battery energy storage system to help power its entire Pilbara power network.

Partner to reduce the carbon footprint across the value chain

Climate change will only be solved through collective action by government, business and consumers across the globe, according to Rio. The company says it is working on innovative partnerships to stimulate action with customers and other parties across the value chain.

In September 2019, Rio Tinto launched an initiative in the steel industry, partnering with China Baowu Steel Group and Tsinghua University to develop solutions to help address the steel industry’s carbon footprint and improve environmental performance.

In 2018, Rio announced a new technology partnership with Alcoa, with support from Apple and the governments of Canada and Quebec, to further develop ELYSIS carbon-free aluminium smelting technology.

Enhance resilience to physical climate risks

Rio Tinto says it considers climate-related risks over the life of its operations from design to closure and beyond. The impact of extreme weather events is already being seen at many sites and work is underway to assess the probability and potential impact of these risks in the future. Seventy-six per cent of electricity consumption at managed operations is from renewable energy and most of the operations have significantly lower carbon intensities than sector averages.

Rio said: “Rio Tinto’s new 2030 climate targets are linked to executive remuneration. The Chief Executive’s Short Term Incentive Plan includes delivery of the group’s strategy on climate consistent with the new targets. These are cascaded down to relevant members of the Executive Committee and other members of senior management.”

Rio pushes back the life of Kennecott copper operation with $1.5 billion investment

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Rio Tinto’s Kennecott copper operation in the US is set to keep operating to 2032 following a $1.5 billion investment.

The investment will further extend strip waste rock mining and support additional infrastructure development in the second phase of the South Wall Pushback project, to allow mining to continue into a new area of the orebody and deliver close to 1 Mt of refined copper between 2026 and 2032, according to the mine.

The first phase of the South Wall Pushback, which is expected to be complete in 2021, extended production from 2019 to 2026. Some $300 million remains to be spent of a $900 million investment.

“It is a world-class project that will generate attractive returns and allow further exploration of the deposit and options for mine life extension,” Rio said.

This additional investment will commence in 2020 and is included in the company’s group capital expenditure guidance of $7 billion in 2020, and $6.5 billion in both 2021 and 2022 as development capital, it said.

With this project, Rio says it has invested more than $5 billion in modernisation, environmental stewardship and mine-life extension initiatives since it acquired Kennecott in 1989.

Rio Tinto Chief Executive, J-S Jacques, said: “This is an attractive, high value and low risk investment that will ensure Kennecott produces copper and other critical materials to at least 2032.

“The outlook for copper is attractive, with strong growth in demand driven by its use in electric vehicles and renewable power technologies, and declining grades and closures at existing mines impacting supply.”

He added: “Kennecott is uniquely positioned to meet strong demand in the United States and delivers almost 20% of the country’s copper production. North American manufacturers have relied on high-quality products from Kennecott for the past century and this investment means it will continue to be a source of essential materials into the next decade.”

Earlier this year, Rio announced that it would cut the carbon footprint associated with operations at Kennecott by permanently closing its coal fired power plant and sourcing renewable energy certificates.

Jacques added: “Kennecott will be supplying customers across North America with products that are not only produced in the region but responsibly mined with a significantly reduced carbon footprint.”

Kennecott’s operations include the Bingham Canyon mine, Copperton concentrator, Garfield smelter, refinery, power plant and associated facilities.

Rio addresses STEM skills shortage with new educational program

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Rio Tinto says it will work with leaders in Australia’s education and innovation sectors in a “new, disruptive approach designed to tackle a looming skills gap in the nation’s future workforce”.

The company will invest A$10 million ($6.8 million) in a four-year national program, targeted at school-age learners, that aims to fast-track the development of skills needed for the digital future, including critical thinking, problem-solving, automation, systems design, and data analytics.

Launched today at the Rio Tinto Centre for Mine Automation at the University of Sydney, and developed in partnership with startup accelerator BlueChilli and Amazon Web Services (AWS), the program will crowd-source and fund ideas from start-ups and schools, Rio says.

“Designed to prepare young Australians for work of the future, the initial phase of the program will identify existing EdTech projects aimed at enhancing future skills, that can be scaled-up quickly for the use of students, teachers and parents,” Rio said.

Data compiled by employment analytics firm Burning Glass shows there is a shortage of transferable, broad-based Science, Technology, Engineering and Maths (STEM) skills, such as systems analysis and programming, and broader expertise, such as communication and problem solving, needed for the digital revolution.

An advisory board of Australian education, innovation and business leaders, to be announced early next year, will guide the accelerator program and recommend future areas for investment. In 2020, startups selected for the program will each receive a grant from Rio Tinto, as well as training and mentoring from experienced entrepreneurs.

Rio Tinto will also encourage other business, education and innovation leaders to join the program, it says.

Rio said: “The initiative complements the A$14 million Rio Tinto already invests in education programs each year with universities, schools, governments and the not-for-profit sector to help meet growing demand for new and emerging skills.”

The existing investment includes a partnership with the West Australian Government and TAFE to develop the first nationally recognised qualifications in automation.

Rio Tinto chief executive, J-S Jacques (pictured), said: “This new program takes a bold and disruptive approach to identifying solutions that will help equip young people with the knowledge and skills for a changing world.”

He said rapid technological change was transforming people’s lives, and the pace of change is only increasing, challenging the company’s ability to attract, develop and retain the talent needed to run our operations of the future.

“Workers with transferable skills including broad-based Science, Technology, Engineering, Arts, and Maths are critical for Australia’s future productivity and global competitiveness,” he said.

He concluded: “Addressing the change in skills required by mining and other industries is a task that requires new thinking and genuine partnerships between business, governments and academia. This approach significantly expands the network of organisations focused on equipping people for a digital future.”

Amazon Web Services Head of Resource Industries for Australia and New Zealand, Sarah Bassett, said: “AWS is committed to helping Australians develop the skills needed to thrive in the future workplace and drive economic growth. We are delighted to work with Rio Tinto and BlueChilli, as well as some of the most innovative startups, to help enable their ideas through technology.”

University of Sydney Deputy Vice-Chancellor (Research), Professor Duncan Ivison, said the university has worked with Rio Tinto for over a decade in advanced robotics and AI technology.

“Programs like these are particularly important when you consider the automation of routine tasks will increase demand for higher order skills such as critical thinking and analysis,” he said. “We need to prepare young people for these changes and at a minimum ensure that with increasing digitisation of the workplace there is basic digital literacy across all workers.”

Anglo American, Rio Tinto back World Bank’s clean technology developments

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Anglo American and Rio Tinto have committed to the World Bank’s Climate-Smart Mining initiative by becoming founding donors to the Climate-Smart Mining Facility.

The Climate-Smart Mining Facility is the first-ever fund dedicated to making mining for metals and minerals a more sustainable practice that complements the global energy transition, according to Anglo.

Building on the World Bank’s initial $2 million investment, Anglo American and Rio have joined governments (the German government being one) as a donor. Anglo said it would provide $1 million to the facility over the next five years.

“The facility’s work will support the sustainable extraction and processing of mining products used in developing clean energy technologies, such as copper used in energy storage and electric vehicles,” Anglo said. “The fund will also work with governments and operators in developing countries to establish strategies for sustainable mining operations and legal frameworks that promote smart mining.”

Anglo American said it shares the World Bank’s view that the energy transition will be mineral-intensive, creating economic opportunities for resource-rich countries and the mining sector.

Mark Cutifani, Chief Executive of Anglo American, said: “To have real impact we must work together with governments and operators to bring changes. That is why we are supporting the World Bank with this facility, to provide funds that can transform our industry for the future.

“Mining cannot continue its long path of simply scaling up to supply what the world needs. We need to do things in dramatically different ways if we are to transform our footprint and be valued by all our stakeholders. Our first responsibility is to reduce our energy and water usage, and our emissions.

“At Anglo American, we have set ourselves on a journey to carbon neutrality operationally, with our 2020 and 2030 targets as staging posts. Our FutureSmart Mining™ technologies will be a key driver of this.”

Rio Tinto CEO, J-S Jacques, said: “The transition to clean energy solutions presents both a significant opportunity and responsibility for the mining industry, as it provides the materials that make these technologies possible.

“We want to be part of the solution on climate change and the best solutions will come from innovative partnerships across competitors, governments and institutions. Our collaboration with the World Bank and many others is aimed at making a real difference by promoting sustainable practices across our industry. We look forward to supporting the Climate-Smart Mining Facility by contributing not just funding but also expertise as a leader in sustainable mining practices.”

The World Bank said the facility focuses on “helping resource-rich developing countries benefit from the increasing demand for minerals and metals, while ensuring the mining sector is managed in a way that minimises the environmental and climate footprint”.

The facility, which supports the sustainable extraction and processing of minerals and metals used in clean energy technologies, such as wind, solar power, and batteries for energy storage and electric vehicles, will also assist governments to build a robust policy, regulatory and legal framework that promotes climate-smart mining and creates an enabling environment for private capital, the World Bank said.

Projects may include:

  • Supporting the integration of renewable energy into mining operations, given that the mining sector accounts for up to 11% of global energy use and that mining operations in remote areas often rely on diesel or coal;
  • Supporting the strategic use of geological data for a better understanding of “strategic mineral” endowments;
  • Forest-smart mining: preventing deforestation and supporting sustainable land-use practices; repurposing mine sites, and;
  • Recycling of minerals: supporting developing countries to take a circular economy approach and reuse minerals in a way that respects the environment.

Riccardo Puliti, Senior Director and Head of the Energy and Extractives Global Practice at the World Bank, said: “The World Bank supports a low-carbon transition where mining is climate-smart and value chains are sustainable and green. Developing countries can play a leading role in this transition: developing strategic minerals in a way that respects communities, ecosystems and the environment. Countries with strategic minerals have a real opportunity to benefit from the global shift to clean energy.”

The World Bank is targeting a total investment of $50 million, to be deployed over a five-year timeframe.

Rio’s productivity and innovation capabilities on show at Amrun bauxite mine

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Rio Tinto says it has completed commissioning of the $1.9 billion Amrun bauxite mine on the Cape York Peninsula in Queensland, Australia.

This follows the company completing the first shipment of bauxite back in December, six weeks ahead of schedule.

The mine and associated processing and port facilities will replace production from Rio Tinto’s depleting East Weipa mine, also in Queensland, and increase annual bauxite export capacity by around 10 Mt, the company said. This move comes at a time when higher-grade bauxite is becoming scarcer globally, Rio added.

Rio Tinto Chief Executive, J-S Jacques, said: “Amrun was completed early and under budget, demonstrating Rio Tinto’s productivity and innovation capabilities. By applying fresh thinking we also delivered safety, environmental, cost and timing benefits.”

Queensland Premier, Annastacia Palaszczuk (pictured right), said: “Weipa’s bauxite will be used to make aluminium for mobile phones, aeroplanes, vehicles and many other applications around the world. The Amrun project is one of the sector’s proudest achievements and I am delighted to be visiting this amazing mine and its workers once again.”

In an industry first, according to Rio, Amrun’s 1 km-long export facility was built in modules off-site and then brought to Amrun and connected. “This reduced over-water construction and painting in the culturally significant and environmentally sensitive region and reduced construction time by a year,” Rio said. It also increased safety by removing the need for 300,000 work hours that would have been spent at height and over water.

Rio Tinto Growth & Innovation group executive, Steve McIntosh, said: “Game-changing innovations and collaborations such as these are vital for advancing the future of the mining and metals industry globally in a safe, cost-effective and replicable manner.”

Amrun is about 40 km south of Rio’s existing East Weipa and Andoom mines. The mine, plant and export facility were approved in 2015, with a targeted start date of 2019.

At full production, Amrun will have capacity of 22.8 Mt/y, with options to expand.

Rio to consolidate technology developments with Koodaideri iron ore mine

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Rio Tinto says it will develop its most technologically advanced mine following the full approval of a $2.6 billion investment in the Koodaideri iron ore mine in Western Australia.

Koodaideri will deliver a new production hub for Rio Tinto’s iron ore business in the Pilbara, incorporating a processing plant and infrastructure including a 166 km rail line connecting the mine to the existing network.

Construction on Koodaideri Phase 1 will start next year with first production expected in late 2021. Once complete, the mine will have an annual capacity of 43 Mt, underpinning production of the company’s flagship iron ore product, Pilbara Blend.

Koodaideri Phase 1 will help sustain Rio Tinto’s existing production capacity by replacing depletion elsewhere in the system, Rio says.

“The project will increase the higher-value lump component of the Pilbara Blend, subject to market conditions, from the current average of about 35% to around 38%. It is expected to deliver an internal rate of return of 20% and capital intensity of around $60/t of annual capacity, highly competitive for a new mine considering the additional infrastructure of rail spur, airport, camp and road access required,” the company said.

The operation has been designed to use an increased level of automation and digitisation, helping to deliver a safer and more productive mine, which is expected to be Rio Tinto’s lowest cost contributor to its industry benchmark Pilbara Blend product.

“Through the use of digital assets, advanced data analytics and automation, Rio Tinto expects to significantly enhance the operation and maintenance of this new mine,” Rio says.

Rio Tinto CEO J-S Jacques said: “Koodaideri is a gamechanger for Rio Tinto. It will be the most technologically advanced mine we have ever built and sets a new benchmark for the industry in terms of the adoption of automation and the use of data to enhance safety and productivity.

“As we pursue our value over volume approach, targeted high-quality investments such as Koodaideri will ensure we continue to deliver value for our shareholders and Australians.”

The investment is underpinned by an orebody of high-quality Brockman ore more than 20 km long and 3 km wide. This contains some 269 Mt of proven reserves and 329 Mt of probable reserves.

In addition to mine infrastructure, an airport, mine support facilities and accommodation for employees will be built. Throughout the construction period Rio Tinto expects to employ over 2,000 people with 600 permanent roles created once the mine is operational.

Since completion of the prefeasibility study in 2016, additional capital has been included for productivity enhancements to increase capacity to 43 Mt, from the 40 Mt base case. The project scope was also broadened to incorporate significant safety improvements and the development of additional infrastructure such as an airport and site access roads. Cost inflation for labour and materials also contributed to the capital increase.

A $44 million prefeasibility study into Koodaideri Phase 2 has also been approved. The expansion could increase annual capacity from the Koodaideri production hub to 70 Mt and beyond. A final investment decision is subject to study outcomes and Rio Tinto’s value over volume approach, Rio said.

Koodaideri will feature technology already in use across Rio Tinto, such as autonomous trucks, trains and drills, and implement systems connecting all components of the mining value chain for the first time.

“The development will consolidate everything Rio Tinto has learned from its studies into finding advanced ways to extract minerals while reducing environmental impacts and improving safety, known as the Mine of the FutureTM programme,” the company said.

Koodaideri has more than 70 innovations in scope including:

  • A digital replica of the processing plant, accessible in real time by workers in the field;
  • Fully-integrated mine automation and simulation systems;
  • Advanced automation including an automated workshop, and;
  • Numerous data analytics capabilities and control loops to optimise production and reduce downtime.

Koodaideri is some 35 km northwest of Rio’s Yandicoogina mine, and about 110 km from the town of Newman in the Pilbara region. The development remains subject to final Western Australian government approval.

IM found out more about the Koodaideri development recently, carrying out a Q&A with Matthew Holcz, Managing Director of Planning Integration and Assets of Rio’s iron ore division. This article was featured in the November issue of IM.