Mining giant Rio Tinto last week made the shock announcement that CEO Tom Albanese would step down after the company reported a $14-billion impairment for 2012.
Iron-ore chief Sam Walsh has been appointed his successor, effective immediately.
Rio’s energy chief, Doug Ritchie, who led the acquisition and integration of the Mozambique coal assets, has also stepped down by mutual agreement.
“While I leave the business in good shape in many respects, I fully recognise that accountability for all aspects of the business rests with the CEO,” Albanese said.
The group also expected a number of smaller asset writedowns in the order of $500-million.
Rio Tinto chairperson Jan du Plessis paid tribute to both Albanese and Ritchie, who have been with the company for 30 and 27 years respectively.
“We are fortunate to have such a capable and highly experienced executive as Walsh to take over and ensure there will be a rapid and seamless transition. He is ideally placed to cast a fresh eye over how we address the challenges and opportunities in the business, and derive greater value from it,” Du Plessis said.