Rio Tinto streamlines group structure to cut costs, splits up energy division

Diversified mining group Rio Tinto has announced plans to streamline its product groups and corporate functions, dividing up its energy division as it looks to cut costs and simplify its structure.

Under the new arrangements, which will come into effect immediately, the group is to condense from the current five product groups into four: aluminium, copper and coal, diamonds and minerals, and iron ore.

The energy division, which currently houses its coal and uranium assets, is being split up, with uranium joining the diamonds and minerals unit.

As such, energy boss Harry Kenyon-Slaney will leave the business.

Rio also plans to reshape a number of key corporate functions to further reduce costs and improve effectiveness.

Rio Tinto chief executive Sam Walsh said: "These changes are part of our continuing business transformation to reduce costs, simplify and strengthen our company and deliver sustainable value for shareholders.

"Our coal and uranium assets remain a part of our world-class portfolio. We will work hard to ensure there is a smooth transition for our colleagues in the Energy product group and continue to maximise efficiencies in our coal and uranium operations.”