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BHP Billiton appoints new CEO as miner suffers worst profit drop in decade – by Sonali Paul (Reuters/National Post – February 20, 2013)

The National Post is Canada’s second largest national paper.

MELBOURNE — BHP Billiton Ltd appointed the head of its non-ferrous business as its CEO to replace Marius Kloppers, the fourth global miner this year to change its top brass as the industry enters a new era of austerity.

Miners are now focusing on squeezing the most out of their best assets after coming under pressure from investors for splashing out on expensive projects and acquisitions and allowing costs to spiral out of control in the boom years.

BHPís appointment of Andrew Mackenzie, 56, as its CEO is a sign that miners are turning to men with strong operational credentials to focus on capital discipline, rather than deal makers, as commodity prices wane. Rival Rio Tinto appointed former iron ore chief Sam Walsh as its CEO last month.

The era where these big mining companies such as BHP go out and engage in these 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 spend as their investors stand on the side and watch in bemusement. Mackenzie, wooed by Kloppers from Rio Tinto in 2007, will move into the top job in May.

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BHP’s Andrew Mackenzie: A new chief, a new direction – by Paul Waldie (Globe and Mail – February 20, 2013)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

LONDON — The new chief executive of mining giant BHP Billiton PLC says mergers and acquisitions will not be a major part of his strategy.

Andrew Mackenzie, who is taking over as chief executive officer from Marius Kloppers, said during a media conference call Wednesday that his main priority will be to “run our very impressive ore bodies extremely well.” He added that while BHP won’t completely rule out mergers, they are “not central to my strategy.” Instead, he plans to concentrate on cutting costs and improving the company’s “capital discipline.”

BHP announced late Tuesday that Mr. Kloppers will resign in May after a near 20-year career at the miner including nearly six as CEO. He had come under pressure recently for sharp writedowns of some assets and a couple of failed takeovers including a $40-billion (U.S.) bid for Potash Corp. of Saskatchewan Inc. in 2010 which was thwarted by the Canadian government.

Mr. Kloppers, 50, said during the conference call Wednesday that the decision to leave was difficult but he that he felt “the time is right to pass the baton to Andrew.” He added that he was leaving with pride at what he had accomplished at BHP. And he said he has no plans after leaving BHP beyond returning to his native South Africa for a while.

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