Global miner Rio Tinto Limited (LON:RIO) (ASX:RIO) has announced the surprise departure of its chief executive.
Rio, which has been battered by falling commodity prices, said Sam Walsh will retire from the business on July 1.
The chief executive of the company's copper & coal division, Jean-Sébastien Jacques, will succeed him and will become deputy chief executive immediately.
Walsh took up his post about three years ago and faced the task of streamlining Rio amid falling commodity prices after an expansion drive under predecessor Tom Albanese.
He has slashed costs and abandoned Rio's progressive dividend policy, cutting pay-outs to at least US$1.10 in 2016 from US$2.15 last year, due to lower commodity demand and prices.
Chairman Jan du Plessis said: "The board appointed Sam as chief executive at a challenging time for our company and I am very grateful for his tremendous leadership during the past three years.
"Against the backdrop of a volatile economic environment, Sam and his team have transformed the business, removing more than US$6bn of costs, strengthening the balance sheet and returning more than US$13bn to shareholders. Sam leaves Rio Tinto as a much stronger company, with a bright future."
Walsh said: "I have been seriously fortunate to lead one of the world's best companies. After 25 great and enjoyable years with Rio Tinto, now is the right time to pass the reins on to Jean-Sébastien."
Chris Salisbury will become acting chief executive of the copper & coal product group.
Shares in Rio rose 5% to 2025.5p, although the price has fallen from 3030p in May last year.