Fortescue Promotes Chief Financial Officer to CEO Role
November 29 2017 - 9:12PM
Dow Jones News
By Robb M. Stewart
MELBOURNE, Australia--Fortescue Metals Group Ltd. (FMG.AU) has
tapped finance chief Elizabeth Gaines to lead the iron-ore company,
taking over from outgoing Chief Executive Nev Power.
Ms. Gaines, a director of the Australian company since 2013,
took on the role of chief financial officer in February, about
seven months before Mr. Power announced plans to retire early next
year after seven years as CEO.
Fortescue has flagged a more aggressive dividend payout for
shareholders even as it continues to chip away at debt, although in
recent months it has struggled with steeper-than-anticipated
discounts for the grades of iron ore it ships to China from its
operations in Australia's western Pilbara region.
Ms. Gaines will be the third CEO of Fortescue since it was
founded in 2003 by now Chairman Andrew Forrest as a challenger to
larger Australian rivals Rio Tinto PLC (RIO.LN) and BHP Billiton
Ltd. (BHP.AU). In recent years, it has focused on cutting debt
built up by developing mines, a rail network and port facilities
that have positioned it as the world's fourth-largest exporter of
the steel-making ingredient. More recently, the company said it had
begun exploring for other resources that could broaden its
focus.
In a statement, Ms. Gaines said she was "privileged and humbled"
to be chosen as the company's next CEO.
With her appointment, Mr. Forrest said current corporate finance
manager Ian Wells would be promoted to chief financial officer.
Julie Shuttleworth, general manager of Fortescue's Solomon mining
operation, would take on the new role of deputy CEO and director of
operations. Greg Lilleyman will become chief operating officer.
"Elizabeth will lead an organization where every person seeks
advice from their immediate principal as opposed to industry
accepted management method of upwards unilateral authority," Mr.
Forrest said, adding that directors would be called on to step in
on an occasional and part-time capacity to help drive Fortescue's
product diversification and asset development.
Mr. Power earlier this year said he would step down in February,
initially to spend more time with his family.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
November 29, 2017 20:57 ET (01:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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