Leading A Mining Giant

Tom Albanese is the chief executive officer and board member of Rio Tinto one of the largest mining firms in the world. Albanese was born in New Jersey on September 9, 1957.  He equipped himself well academically for the job earning a bachelor’s degree in mineral economics from the University of Alaska Fairbanks. Later Albanese got a master’s degree in mining engineering from the same university.

As it often happens the path to the top is not programmed. Early on Albanese did not imagine himself heading Rio because he worked for another company called Nerco.  In 1993, Nerco was acquired by Rio and Albanese was on his way to getting the top job.

He held various management positions and was appointed chief executive of the Industrial Minerals group in 2000. Albanese was then named chief executive of the Copper group and head of Exploration in 2004. 

Outside of Rio he has been a director of Ivanhoe Mines Limited from 2006 to 2007, director of Palabora Mining Company from 2004 to 2006. On the academe Albanese since 2009 has been member of board of visitors, Duke University, Fuqua School of Business.

The company that Albanese heads has a unique structure. There is Rio Tinto plc, a London listed public company based in the U.K. and Rio Tinto Limited, which trades on the Australian Stock Exchange and has headquarters in Melbourne. These two companies are called the Rio Tinto Group, joined in a dual listed companies (DLC) structure as a single economic entity. Rio has five principal product groups – Aluminum, Copper, Diamonds & Minerals, Energy and Iron Ore; with two support groups: Technology and Exploration.

Due to its size a whole country’s economic situation can have a huge impact on the company.  Take for example the case of China. Rio and Albanese watch closely the economic growth of this country as it has a significant impact on its bottom line. Last year with the cut in the forecast for Chinese growth Rio had to also cut its on sales and profitability forecast.  Albanese had to also make the tough calls to cut costs including jobs.  He also refused to receive a bonus when the company did not do well.