Long-serving Elliott will remain on the board until the end of next year and in his role until a successor has been appointed.

He has been a director and CFO for 10 years but has been with Rio for 32 years in various roles including president of Rio Tinto Brazil and head of business evaluation.

Rio chairman Jan du Plessis and chief executive officer Tom Albanese thanked Elliott for his contribution, especially during the global financial crisis when Rio was hit particularly hard.

As Elliott also led the company’s strategy, his departure has prompted changes to the executive team.

Energy chief Doug Ritchie has been appointed to the new London-based role of group executive, strategy from January 1, 2013.

Ritchie has been with Rio for 25 years and was previously strategy managing director prior to his current role.

Diamonds and Minerals chief executive Harry Kenyon-Slaney will take over Ritchie’s Brisbane-based Energy role from September 1.

Iron ore international operations president Alan Davies will join the executive committee and will be the new Diamond and Minerals chief to be based in London.

Davies will retain responsibility for the Simandou iron ore project in Guinea and Dampier Salt will transfer to the Diamond and Minerals division from Iron Ore.

Albanese said it was important to develop people’s careers by giving them new challenges.

“Adding a strategy role to the executive committee underlines the priority we place on this key area and on continuity of our strategic direction,” he said.

Rio shares shed 2% or $A1.15 to $54.50 this morning.