Australia’s richest person is urging Rio Tinto’s (ASX, LON: RIO) incoming chief executive, Simon Trott, to move the company’s headquarters to Western Australia, while casting doubt on the miner’s Simandou iron ore project in Guinea.
Gina Rinehart, whose Hancock Prospecting holds multiple iron ore joint ventures with Rio, made the comments as the miner reported its lowest first-half iron ore export volumes in a decade. Severe cyclones earlier this year caused widespread flooding and logistical disruptions, hitting Rio’s Pilbara operations hard.
The company shipped 150.6 million tonnes of iron ore between January and June, down 4.9% from the same period last year. While second-quarter shipments rebounded 13% to 79.9 million tonnes, the gains weren’t enough to offset the earlier slump. Rio now faces pressure to accelerate exports if it hopes to meet its 2025 goal of at least 323 million tonnes.
In a congratulatory message to Trott, Rio’s first Australian-born chief executive since Sam Walsh (2013-2016), Rinehart offered congratulations along with a pointed suggestion.
“Congratulations to Simon! When Sam Walsh went from iron ore chief to CEO, I suggested that he transfer Rio headquarters to where it makes most of its money, Western Australia,” she said as quoted by the Australian Financial Review. “Still think this would be good for WA, and much safer than Guinea!”
With the comment, Rinehart took a swipe at Rio’s Simandou project, which some have called the the “Pilbara killer” due to its potential to rival or surpass the Pilbara region as the world’s leading iron ore hub. Rio has pushed back on that label, instead calling Simandou a “Pilbara enabler”.
Rio said Wednesday that Simandou is on track to ship its first ore by November, with up to one million tonnes expected before the end of 2025.
Despite the African ambitions, Rio continues to pour capital into its Australian operations. The company has pledged more than $13 billion for new mines and equipment in the Pilbara through 2028.
As part of that investment drive, Rio and Hancock Prospecting agreed last month to jointly spend $1.6 billion on the Hope Downs 2 project, which includes the Hope Downs 2 and Bedded Hilltop deposits.
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Australia’s richest person is urging Rio Tinto’s (ASX, LON: RIO) incoming chief executive, Simon Trott, to move the company’s headquarters to Western Australia, while casting doubt on the miner’s Simandou iron ore project in Guinea.
Gina Rinehart, whose Hancock Prospecting holds multiple iron ore joint ventures with Rio, made the comments as the miner reported its lowest first-half iron ore export volumes in a decade. Severe cyclones earlier this year caused widespread flooding and logistical disruptions, hitting Rio’s Pilbara operations hard.
The company shipped 150.6 million tonnes of iron ore between January and June, down 4.9% from the same period last year. While second-quarter shipments rebounded 13% to 79.9 million tonnes, the gains weren’t enough to offset the earlier slump. Rio now faces pressure to accelerate exports if it hopes to meet its 2025 goal of at least 323 million tonnes.
In a congratulatory message to Trott, Rio’s first Australian-born chief executive since Sam Walsh (2013-2016), Rinehart offered congratulations along with a pointed suggestion.
“Congratulations to Simon! When Sam Walsh went from iron ore chief to CEO, I suggested that he transfer Rio headquarters to where it makes most of its money, Western Australia,” she said as quoted by the Australian Financial Review. “Still think this would be good for WA, and much safer than Guinea!”
With the comment, Rinehart took a swipe at Rio’s Simandou project, which some have called the the “Pilbara killer” due to its potential to rival or surpass the Pilbara region as the world’s leading iron ore hub. Rio has pushed back on that label, instead calling Simandou a “Pilbara enabler”.
Rio said Wednesday that Simandou is on track to ship its first ore by November, with up to one million tonnes expected before the end of 2025.
Despite the African ambitions, Rio continues to pour capital into its Australian operations. The company has pledged more than $13 billion for new mines and equipment in the Pilbara through 2028.
As part of that investment drive, Rio and Hancock Prospecting agreed last month to jointly spend $1.6 billion on the Hope Downs 2 project, which includes the Hope Downs 2 and Bedded Hilltop deposits.