6th Mar 2014 13:05
LONDON (Alliance News) - Vedanta Resources PLC Thursday said it has appointed Tom Albanese as its new Chief Executive Officer from April 1, a move that marks his return to the helm of a major mining company just a year after he quit Rio Tinto PLC when the mining giant swung to net loss amid an industry-wide downturn.
Albanese, who was one a several high-profile victims of the downturn that struck the mining industry in late 2012 and early 2013, will join Vedanta's board in April after taking over from outgoing CEO, M.S. Mehta, who is retiring at the end of March.
The CEOs of Anglo American and BHP Billiton also lost their jobs around the same time, as the mining companies were forced to start contracting in response to a severe downturn that had followed a boom in commodities process.
Vedanta said it also intends to recommend that Albanese replaces Mehta as CEO of its Sesa Sterlite Ltd subsidiary.
Mehta had been expected to stand down as CEO of Vedanta in December 2013, but agreed to extend his contract for a further three months in order for the Nominations Committee to make a decision on his successor.
Albanese has been working with Vedanta since September 2013, when he was made Chairman of its Vedanta Resources Holdings subsidiary, the holding company of its Sesa Sterlite operations in India and Konkola Copper Mines in Zambia. However, he wasn't appointed to the board of the parent company.
He quit Rio Tinto in January 2013 after the company swung to a 2012 pretax loss of USD2.57 billion, from a pretax profit of USD13.2 billion in 2011. A big writedown on two acquisitions the company made in 2011 was a major factor in the massive swing in fortunes.
Albanese said his focus at Vedanta will be on operational improvements, efficient cost management and sustainability to drive long term value for all our stakeholders.
Vedanta?s Indian billionaire boss, Anil Agarwal, continues to own most of the company and remains executive chairman.
"Tom Albanese's skills and experience in leading world-class mining companies will be of great value in supporting our strategic objective of creating sustainable long-term value for all our stakeholders," Agarwal said in a statement.
Shares in the firm were trading up 3.3% at 885.50 pence per share, putting it in the top ten risers on the FTSE 250 Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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