Rio Tinto is on the hunt for a new CEO, yet again. Following a recent CEO announcement by a peer company, South32, Rio Tinto has confirmed that current CEO Jakob Stausholm will depart later this year once a successor is appointed. This latest leadership change, coming amidst a period of strategic realignment and heightened investor scrutiny, prompts a closer look at the criteria for the next leader and the potential candidates.
The Search for Stausholm’s Successor
Stausholm, who took the helm in January 2021 after the contentious Juukan Gorge incident, has been credited with restoring trust and steering the company towards commodities crucial for the energy transition. His departure marks what the board calls a “natural moment” for a transition as Rio Tinto seeks to “double down to deliver greater operational performance to realise the full potential of its assets.”
The search, aided by executive recruitment firm MWM Consulting, is casting a wide net, reportedly looking at both internal and external contenders. The core criteria highlight strong operational experience and a proven track record of delivering growth.
Bold Baatar: A Frontrunner from the Copper Sector
While names like Simon Trott, head of the iron ore business, and Jérôme Pécresse, who leads the aluminum division, are circulating, one internal candidate, Bold Baatar, stands a particularly strong chance. Baatar, currently Chief Commercial Officer, has earned significant praise for his communication, portfolio knowledge, and crucially, his problem-solving skills, particularly as showcased during his role in stabilising Rio Tinto’s immense Oyu Tolgoi copper project in Mongolia. This complex undertaking, fraught with technical challenges and governmental disputes, reached its critical underground expansion phase under his direct oversight. His ability to navigate such a high-stakes asset’s development aligns perfectly with the board’s stated need for leaders who can realise the full potential of Rio’s assets.
Complicating the leadership search, recent tensions emerged amongst some shareholders, notably hedge fund Palliser Capital and over 100 others, who pushed for an independent review of Rio Tinto’s dual-listed company structure, arguing it was value-destructive. Though ultimately rejected by the majority of shareholders, this dynamic highlights the persistent influence of investor activism on corporate strategy and board decisions.
Having previously worked alongside both Jean-Sébastien Jacques and Tom Albanese, the pattern of copper-sector leaders rising to the CEO role at Rio Tinto is a familiar one, suggesting Bold Baatar’s experience aligns well with the company’s historical preferences. Jacques, Stausholm’s predecessor, rose through the ranks after heading the copper and coal businesses. Similarly, former CEO Albanese, who had a significant stint as Chief Executive Copper and Exploration before taking the top role, further underscores this pattern. Albanese also had experience with Palabora Mining Company (PMC) in South Africa, further evidencing this pattern and, critically, the global nature of leadership development at Rio Tinto.
Baatar’s extensive experience, which includes leadership positions across marine, iron ore sales and marketing, and the Energy & Minerals product group before his copper leadership, provides a broad understanding of the company’s diverse portfolio. His recent appointment as Chief Commercial Officer further demonstrates his strategic value.
Shifting Gears: A Broader Industry Trend in Leadership Changes
As Rio Tinto prepares for its next phase of growth, emphasising operational excellence and harnessing the power of its tier-one assets, Bold Baatar’s track record, particularly his success in Mongolia, positions him as a compelling and well-aligned candidate for the CEO role.
Musical chairs have also occurred at South32, which recently announced the appointment of Matthew Daley as its new Chief Executive Officer (CEO). Daley, who comes in from Anglo American, will succeed Graham Kerr, who will step down from the helm of South32 later in 2026 after a distinguished tenure since the company’s 2015 demerger from BHP.
Editorial: Lloyd Nedohe, @lloydnedohe_ on X. Email: info@esgfrontiers.co.za
