Rio Tinto has appointed Simon Trott as its next CEO, selecting the current head of its iron-ore division to succeed Jakob Stausholm effective August 25.

Trott, a 25-year veteran of the company, was chosen following a formal search process that considered internal and external candidates. As iron-ore CEO, he oversaw operational improvements, safety performance and strengthened relationships in a division that accounts for a significant share of Rio’s earnings.

“Simon is an outstanding leader with a deep understanding of mining and a track record of delivering operational excellence and creating value across our business,” said chairperson Dominic Barton.

“Simon and the board are aligned that Rio Tinto’s next phase is about unlocking significant value for shareholders from our portfolio, driven by operational performance, and cost and financial discipline.”

Trott previously served as Rio Tinto’s first chief commercial officer, where he built out the company’s commercial operations and expanded customer relationships. He has also held senior roles across multiple commodities and regions.

“It is a privilege to have the opportunity to lead Rio Tinto, and I am excited about our future,” Trott said. “The progress we have made over recent years gives us a foundation to build on with discipline and focus to deliver improved performance.”

Stausholm, who took over as CEO in 2021 amid the company’s efforts to rebuild its reputation following the destruction of sacred Aboriginal sites in Australia, will step down from both the executive role and the board once Trott assumes the position.

“It has been an absolute privilege to lead Rio Tinto for nearly five years, during an important chapter in its history,” Stausholm said. “As the chief executive of our largest business during this time, Simon has been an integral part of the journey.”

Matt Holcz, currently MD of Pilbara Mines, will assume interim responsibilities for the iron-ore division until a permanent successor is named.

Trott will receive a base salary of £1.340-million a year, in line with Rio Tinto’s executive remuneration policy. His package includes standard benefits, incentive plan participation and pension contributions.