Rio Tinto restructure results in iron ore boss Andrew Harding losing job

With iron ore settling at a more realistic price of $50 per tonne which would result in the commodity glut lasting to around 10 years, uncertainty over iron ore appears to loom also over mining executives. One iron ore executive who just lost his job is Andrew Harding of Rio Tinto.

Herald Sun reports that the mining giant announced on Wednesday an executive reshuffle resulting in the sacking of Harding who was considered CEO material to replace Sam Walsh. That means Harding, based in Perth, would have his last day in Rio Tinto on July 1.

To take over the post of Harding – whose career with the miner started as a mining engineer at Rio’s Brockman 2 mine in Western Australia’s Pilbara region at age 26 and lasted 25 years – is Chris Salisbury, acting chief executive of Rio’s Copper and Coal group.

Walsh would be replaced by Jean-Sebastien Jacques who would also begin his term on July 2, the same day that Salisbury would become the new iron ore boss, reports The Sydney Morning Herald. Harding led Rio’s fight against the push by Andrew Forrest to probe falling iron prices.

In turn, Salisbury would be replaced in the Copper and Coal group by Alan Davies who was boss of Diamond and Minerals. That would mean a shift in Davies’ role to searching for uranium, salt, borates and titanium dioxide but would eventually exclude coal as Rio moves away from its coal interests.

With the move, diamonds and copper would be merged into a single unit under Arnold Soirat who currently heads the Aluminium group. Jacques explains that the revamp targets to make Rio Tinto “even stronger, well positioned for delivering returns and building growth.” He adds that the mining giant is performing remarkably well amid the projected decade-long commodity glut.

Meanwhile, Rio Tinto would also cut its gross debt by another $3 billion after accepting for purchase $1.252 billion debt under its Maximum Tender Offer and $1.748 billion under its Any and All Offer. The two offers started on June 7 which form part of the miner’s ongoing capital management.

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