Rio Tinto’s CEO, Jakob Stausholm, addressed a gathering of mining professionals at a conference in Barcelona, providing valuable insights into the company’s history and its relevance to the mining industry today.
Mr Stausholm emphasised the lessons learned from Rio Tinto’s beginnings and how they are shaping the company’s strategy and future growth.
“The learnings are important to extract here, that mine was actually producing for 5,000 years by the Phoenicians and by the Romans and it was seen as a depleted resource,’ said Mr Stausholm.
“The King tried to get money out of it, he lost money on it, he also lost the throne.
“The new republic, they were interested in getting a little bit of money and they decided to sell the mine, and exactly 150 years ago, a few English investors established the Rio Tinto company and bought the mine, which was seen as a very risky investment at this time.”
He highlighted the significance of innovation and technology in the mining industry.
“Buying a depleted resource in at that time an unstable country, but with innovation, with technology, they rebuilt the mine,” said Mr Stausholm.
“They built a railroad which you probably saw and they built a port. Within ten years, this mine was the world’s largest producer of copper, an amazing story.”
Stausholm expressed his belief that the mining industry can learn from Rio Tinto’s history.
“But that is what goes with the history of a company, the key thing is you learn a lot and you become stronger both from the high points and the low points, and there is still so much we can learn from our history,” he said.
Mr Stausholm acknowledged that Rio Tinto’s name originated from a mine located near the Rio Tinto river in Andalucia, where mining activities were carried out by Phoenicians and Romans for over 5,000 years
Turning to Rio Tinto’s current strategy and performance, Mr Stausholm mentioned his belief that Rio Tinto is entering a new exciting chapter in its history.
“I believe we have the right strategy and I believe we are facing an opportunity-rich world,” said Mr Stausholm.
He also highlighted the company’s commitment to operational excellence.
“The roll out of SPS, our investment in lifting the health of our assets, and a shift in culture and mindset is achieving results,” said Mr Stausholm.
“This is particularly true for our iron ore business in the Pilbara where we have consistently improved performance.”
“In the last two quarters, this business achieved record operational results.”
“Starting underground production at the Oyu Tolgoi mine is a significant achievement, 1.3 kilometers beneath the remote Gobi Desert, the end result of this acquisition is less, not more, work for our team, as we unlock increased production and value from an asset we are already operating,” said Mr Stausholm, regarding portfolio management and growth opportunities.
“And we continue to progress the Rincon lithium project in Argentina.
“These three projects will add tonnes in materials essential to the energy transition and strengthen our ability to deliver strong returns for the long term.”
Mr Stausholm concluded by expressing Rio Tinto’s commitment to sustainability and growth.
“We are uniquely positioned to accelerate the decarbonisation of our portfolio, to invest and grow in the commodities needed for the energy transition, and to grow our value and future dividend potential,” he said.
