Mining Week 8/’13: BHP names new CEO
February 24, 2013
- Oil man Andrew Mackenzie named BHP Billiton CEO
- BHP Billiton announced this week that CEO Marius Kloppers will step down in May and will be succeeded by Andrew Mackenzie, the current head of the company’s non-ferrous division, who worked for BP for 22 years and who worked for Rio Tinto prior to joining BHP Billiton.
- Sources: BHP Billiton press release; ABC interview; Youtube Reutersvideo
- Iron ore prices at 16-month high
Trends & Implications:
- BHPB’s appointment of a chief executive with extensive experience in the oil and gas business signals a further shift of focus from mining to natural resource extraction in general. Given the importance of cost control in the coming years, and considering the company’s asset base in oil and gas and the limited understanding of the oil and gas industry by most miners, appointing an insider with good knowledge of the full range of assets is a logical choice.
- The increase of iron ore prices is expected to be a relatively short-term development driven by weather expectations and the annual cyclical demand of Chinese importers. which peaks in Q4 and Q1. Long-term price expectations are still much below the current level as additional production capacity is being added at a high pace.
2013 | Wilfred Visser | thebusinessofmining.com