AKIPRESS.COM - Rio Tinto's chief executive Sam Walsh, who led the firm through a painful commodity price plunge, is to retire and be replaced by Frenchman Jean-Sebastien Jacques in July, IOL reports.

Walsh, who has helmed the Anglo-Australian firm for just over three years and overseen a cost-cutting drive as the mining sector battles through tough times, will also depart Rio's board at the same time.

London-based Jacques, who is currently global head of the firm's copper and coal division, will become deputy chief executive in the interim and joins the board with immediate effect.

“Today's announcement is the culmination of a comprehensive and deliberate executive succession process,” Rio Tinto chairman Jan du Plessis said.

The changeover at the top came as Rio – which is heavily reliant on iron ore – posted an annual net loss of $866 million in 2015 due to tumbling commodity prices, which have squeezed the bottom lines of small and big players alike.

Rio has been tightening its belt to combat the commodities crash, and last month announced a further slashing of costs by $1 billion this year and another $1 billion in 2017. It also slashed capital spending.

Walsh was appointed in January 2013 after the ouster of Tom Albanese on the back of Rio's first annual loss in 18 years in 2012 amid hefty writedowns on its Mozambique coal and aluminium businesses and a dip in commodity prices.

Du Plessis said Walsh transformed the business against the backdrop of a volatile economic environment, leaving it “a much stronger company, with a bright future.”