Rio Tinto Chairman Jan du Plessis to Step Down -- Update
March 09 2017 - 3:57AM
Dow Jones News
By Rhiannon Hoyle
SYDNEY-- Rio Tinto PLC said Chairman Jan du Plessis plans to
step down in the coming year, ending a run of more than eight years
at the world's No. 2 mining company, which is facing scrutiny from
authorities over some of its former African operations.
He joins a growing list of departures from the top ranks of
global miners as the industry emerges from a multiyear downturn.
BHP Billiton Ltd. Chairman Jac Nasser and Anglo American PLC
Chairman John Parker have also signaled their intentions to stand
down.
Rio Tinto said it has been looking for a successor to Mr. du
Plessis, a South African and British citizen, since last June,
after the appointment of Chief Executive Jean-Sebastien Jacques,
who is known as J.S.
Mr. du Plessis will become chairman of British
telecommunications company BT Group PLC in November. Rio Tinto said
it expects to name his replacement this year.
"When we announced the appointment of J-S as chief executive a
year ago, I committed to the board to serve as chairman for another
two years, as part of a planned leadership transition," Mr. du
Plessis said in a statement Thursday. "Today's announcement is the
next step in that plan."
Mr. du Plessis has been a Rio director since 2008 and he became
chairman a year later, as a China-led resources boom was gaining
momentum. He was also chairman of British American Tobacco PLC and
SABMiller PLC.
His departure closes out a year in which the company swung to a
profit of $4.62 billion from a year-earlier loss due to a global
commodities recovery and an aggressive campaign of cost-cutting and
efficiency improvements.
The mining company, which had as recently as 2014 been a
takeover target for Swiss commodities trader Glencore PLC, sold
assets, cut jobs and jettisoned a stable dividend policy to
conserve cash as the mining boom fizzled. Now, it is buying back
shares and investing in new projects.
"The company has withstood the challenges of a cyclical industry
and performed well," Mr. du Plessis said.
Last month, Anglo American's Mr. Parker said he would step down
later this year. Mr. Nasser said he won't seek re-election this
year either, now that work is under way to remediate an
environmental disaster at a Brazilian operation that it runs with
Vale SA.
As Mr. du Plessis plans his departure, Rio Tinto is facing
investigations into some of its former African businesses,
including an iron-ore deposit in Guinea.
Last year, Rio fired one of its most senior operational
executives, as well as its head of legal and regulatory affairs,
amid a probe into emails from 2011 that reference a $10.5 million
payment to a consultant who helped secure mining rights for
Guinea's Simandou deposit. This week, Australian Federal Police
said they were investigating allegations related to the alleged
payment.
During the boom, Simandou was a coveted prize as miners fought
to dig up more iron ore, which used to make steel. In October, Rio
Tinto agreed to sell its stake to Aluminum Corp. of China for $1.1
billion to $1.3 billion.
In December, Rio said it was also under investigation for a $3
billion impairment that was included in its 2012 accounts tied to
coal assets in Mozambique, which have been sold.
Rio Tinto says it is cooperating with the relevant authorities,
including the U.S. Securities and Exchange Commission. It
self-reported the Simandou issue to authorities in the U.S., U.K.
and Australia.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
(END) Dow Jones Newswires
March 09, 2017 03:42 ET (08:42 GMT)
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