Rio Tinto To Reduce Gross Debt By $3 Bln; Forms New Organizational Structure

(RTTNews) - Anglo-Australian mining giant Rio Tinto Plc (RTNTF, RIO, RIO.L, RTPPF) Tuesday announced that it will reduce its gross debt by a further $3 billion. This is after accepting for purchase a total of $1.252 billion of debt under its Maximum Tender Offer and $1.748 billion under its Any and All Offer.

Both offers commenced on June 7 and are part of Rio Tinto's ongoing capital management.

The final aggregate principal amount of Securities purchased under the Any and All Offer that expired on June 13 was $1.748 billion.

The Maximum Tender Offer, which will expire on July 5, was oversubscribed on June 20 and therefore $1.252 billion of Maximum Tender Securities will be purchased. Earlier in the day, the company announced new organisational structure and executive team to drive its performance under its new chief executive Jean-Sébastien Jacques. Rio Tinto's organisational structure will include four product groups - Aluminium, Copper & Diamonds, Energy & Minerals and Iron Ore. These will be complemented by a newly shaped Growth & Innovation group, which will focus on future assets and technical support.

Under the new structure, Aluminium will focus on high-quality bauxite, alumina and aluminium businesses with Alfredo Barrios remaining its chief executive.

Iron Ore will be exclusively focused on iron ore operations in Western Australia, and Chris Salisbury, currently acting Copper & Coal chief executive, will become Iron Ore chief executive.

Copper & Diamonds will combine two marketing-led businesses into a single product group, and Arnaud Soirat will join the Executive Committee as its chief executive.

Energy & Minerals brings together Rio Tinto's coal, uranium, salt, borates and titanium dioxide businesses, as well as the Iron Ore Company of Canada. Alan Davies, currently Diamonds & Minerals chief executive, will lead the division.

Growth & Innovation will provide strategic leadership and technical expertise and Stephen McIntosh, currently acting Technology & Innovation Group executive, will take up the role of its chief.

Andrew Harding, currently Iron Ore chief executive, will leave the business with effect from July 1.