Rio Tinto plc (NYSE:RTP), the world's third-largest mining company,
named Jan du Plessis chairman of the board, effective April 20. In January, debt-laden Rio named Jim Leng -- deputy chairman of India's Tata Steel Ltd. -- as chairman-elect to replace a retiring Paul Skinner. But
Leng quit after differences with the board over corporate strategy, namely over how to resolve its $39 billion in debt.
Du Plessis will continue as chairman of British American Tobacco plc (AMEX:BTI), a role he's had since 2004. He is a nonexecutive director and chairman of the audit committee of Lloyds Banking Group plc (ADR:LYG), although he intends to stand down from that role. Du Plessis has also been a nonexecutive director of Marks & Spencer Group plc since November.
On creating a platform to boost shareholder value and weather the current economic storm, Du Plessis said in a statement, "Pursuing the completion of the transaction with Chinalco will give Rio Tinto this platform." Leng didn't see it that way. And quite a few others with political heft share this view in a big way.
Last month, Rio Tinto agreed to a stock and asset sale worth $19.5 billion to its biggest customer, Aluminum Corp. of China, or Chinalco. On Monday, the Aussie government announced a
90-day extension to review the deal.
Reuters even got wind of
politicians taking to the airways to voice their concern over giving China a strong foothold in its resources. Senator Barnaby Joyce said in a TV ad, "The Australian government would never be allowed to buy a mine in China. So why would we allow the Chinese government to buy and control a key strategic asset in our country." But Trade Minister Simon Crean was cited as saying Australians needed to understand the importance of more two-way investment between Australia and China, which is Australia's largest bilateral trading partner and Australia's second-largest export market.
In
Rio Tinto's annual report, released Tuesday, outgoing chairman Skinner said in his outlook that we could see metals and minerals demand
pick up rapidly when the economy recovers and China particularly may surprise the
market -- "just as
China decelerated sharply, with a strong
impact on metals demand, it will also work
powerfully in the upswing." -
Baz HiralalGo to the Rio Tinto announcementTV ads to add to pressure on Chinalco-Rio deal
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