BHP names new CEO as industry enters era of austerity

REUTERS

MELBOURNE

BHP BILLITON Ltd. appointed the head of the non-ferrous company as its CEO, replacing Marius beaters, the fourth global miner this year if you want to change the top brass as the industry enters a new era of austerity.

Miners are now targeting the most out of their best assets after pressure by investors for splashing out on expensive projects and acquisitions and cost spiral out of control in the boom years making pinching.

BHP's appointment of Andrew Mackenzie, 56, as its CEO is a sign that miners are turning to men with strong operating credentials to focus on capital discipline, rather than deal makers, as raw material prices decrease.

Rival Rio Tinto iron ore chief Sam Walsh appointed former as its CEO last month.

"The era where this large mining companies such as BHP going out and join this expensive corporate deals is over. Mackenzie and Walsh prove that, "said Gavin Wendt, an analyst for MineLife in Australia. "They can no longer go out and spend and bring as their investors stand on the side and in grotesque look." Mackenzie, provoked by agitators of Rio Tinto in 2007, moved to the top job in May.

The appointment was announced as BHP reported a slump 43 percent in the first half profit to 5.68 billion dollars, the worst decline in profit in more than a decade, and took $ 3 billion in write-downs on its aluminum and nickel assets, in line with market forecasts.

BHP highlighted last november it was looking for a new CEO, but beaters, 50, took his own retirement date after nearly six years in the job and allowed retired was a difficult decision.

BHP's shares rose almost 1 percent to a 17-month high of $ 39.03 after Mackenzie the designation for dipping in a slightly firmer overall market.

Mackenzie the designation was not similar to the sacking of Rio Tinto chief executive Tom Albanese last month for untimely deals in aluminum and coal, analysts said.

Mackenzie, a prize-winning scientist who grew up in an industrial town near Glasgow, worked for oil and gas giant BP 22 years before he entered the mining industry, crucial experience in the most important raw materials BHP has targeted for growth as it seeks to ease its dependence on iron ore.

"He is a rare executive because he experience in the oil and gas, petrochemicals and minerals area of this company has."And that suits us, "BHP Chairman Jac Nasser told reporters.