Mining Week 3’/13: New CEOs for Anglo American and Rio Tinto
January 19, 2013
- Mark Cutifani is Anglo’s new CEO
- Anglo announced the appointment of Mark Cutifani, CEO or AngloGold, as the new CEO, replacing Cynthia Carroll in April. The departure of Mrs. Carroll had been announced some time ago.
- Mr. Cutifani has been heading AngloGold since 2007, working as COO of Inco before that. He is an Australian nation, but has extensive experience in South Africa, which should help Anglo to both manage the important government relations in South Africa and become less dependent on the country.
- Sources: Anglo press release; Financial Times Videos; Wall Street Journal
- Walsh replaces Albanese as CEO of Rio Tinto
- Rio Tinto announced the sudden replacement of CEO Tom Albanese by Sam Walsh, who had been heading the company’s iron ore group since 2004. Albanese and Doug Ritchie, the head of the coal group, stepped down because of write-downs of $14bn on acquisitions, including $10-11bn on the acquisition of Alcan in 2008, and $3bn on recent coal acquisitions in Mozambique.
- Sources: Rio Tinto press release; Reuters Videos; Wall Street Journal
Trends & Implications:
- With the departure of Albanese as CEO of Rio Tinto, each of the top 5 diversified miners has a replacement of CEO in a timeframe of 2 years. Only BHP Billiton has not yet announced who the new CEO will be. The previous group of CEOs started their jobs during the high-growth period in which the size of their companies grew exponentially, and then had to lead the same companies through the global financial crisis and debt crisis. The new chief executives will have to manage the performance of their companies in a period of lower growth and potentially more stability in terms of asset base and outlook.
2013 | Wilfred Visser | thebusinessofmining.com