Mining management: BHP Billiton, Rio Tinto and Vale
BHP Billitonis a leading global resources company with a goal of creating long-term shareholder value through the discovery, acquisition, developmen...
BHP Billiton is a leading global resources company with a goal of creating long-term shareholder value through the discovery, acquisition, development and marketing of natural resources. The company is among the world’s largest producers of major commodities such as iron ore, coal copper and uranium, including interests in nickel and potash as well as conventional and unconventional oil and gas.
How is BHP’s management team leading the industry?
Australia’s biggest and most successful global company, BHP is an enterprise that continues to be the nation’s biggest taxpayer by far and is a storage of future wealth for just about every Australian with a superannuation account and a retirement to pay for. With BHP recently shedding a number of its non-core assets into a new business called South32, the company may be setting a trend others will follow.
2014 Revenue: $67.2 billion
2014 Profit: $13.8 billion
Production notes: nine percent increase in production compared from 2013
Chief Executive Officer – Andrew Mackenzie
Mackenzie has over 30 years of experience in oil and gas, petrochemicals and minerals. He joined BHP Billiton in 2008 as Chief Executive Non-Ferrous and commenced as Chief Executive Officer in 2013. Prior to BHP, Mackenzie was Chief Executive of Diamonds and Minerals at Rio Tinto, and held a number of senior roles at BP, including Vice President for Technology and Engineering, and Vice President for Chemicals.
Chief Financial Officer – Peter Beaven
Joining BHP Billiton in 2003, Peter Beaven was appointed Chief Financial Officer in October 2014 after Graham Kerr was appointed Chief Executive Officer of South32. Beaven was previously the President of Copper and prior to that President of Base Metals, President of Manganese, and Vice President and Chief Development Officer for Carbon Steel Materials. He holds a Bachelor of Accountancy from the University of Natal, Pietermaritzburg, South Africa and is a Chartered Accountant.
Director – Jac Nasser
Jac Nasser was appointed Director of BHP Billiton in 2006 and Chairman in 2010. Before joining the company, he spent the better part of his career with Ford Motor Company holding various leadership positions, including serving as President and Chief Executive Officer of Ford from 1998 to 2001. In addition, external appointments for Nasser include non-executive director and chairman of SABMiller plc since 2014 and July 2015 respectively, non-executive director and senior independent non-executive director of Marks and Spencer Group plc from 2008 and 2012 respectively until March 2015.
Rio Tinto is a leading global mining and metals company focused on finding, mining and processing the Earth’s mineral resources in order to maximize value for our shareholders. The company has been in operations for over 140 years and specializes in commodities such as aluminum, copper, diamonds, coal, iron ore, uranium, gold and industrial minerals, with operations in more than 40 countries across six continents.
How is Rio Tinto’s management team leading the industry?
Rio Tinto continues to combat today’s challenging market conditions with a clear and effective strategy that focuses on six key drivers: a world-class portfolio, quality growth, operating and commercial excellence, balance sheet strength, capital allocation discipline and free cash flow generation.
2014 Revenue: $47.7 billion
2014 Profit: $6.5 billion
Production notes: Rio set production records for iron ore, bauxite and coal.
Chief Executive Officer – Sam Walsh
Following 20 years in the automotive industry at General Motors and Nissan Australia, Sam Walsh joined Rio Tinto in 1991. Before becoming chief executive in 2013, Walsh held a number of management positions during his career at Rio, including chief executive of the Aluminum group from 2001 to 2004, chief executive of the Iron Ore group from 2004 to 2009 and chief executive, Iron Ore and Australia from 2009 to 2013.
Chief Financial Officer – Christopher Lynch
Lynch has nearly 30 years’ experience in the mining and metals industry. Prior to joining Rio Tinto, Lynch was chief executive officer of the Transurban Group, and his career includes seven years at BHP Billiton. He also spent 20 years with Alcoa Inc. where he was vice-president and chief information officer, as wella s chief financial officer Alcoa Europe in Switzerland. Mr. Lynch became director of Rio Tinto since 2011 and chief financial officer since 2013.
Chairman – Jan du Plessis
Du Plessis was appointed chairman in 2009. The South African and British citizen became group finance director of Compagnie Financière Richemont, the Swiss luxury goods group, in 1988. In 2004, he was appointed chairman of British American Tobacco plc, a position which he held until 2009.
Vale is global mining company with a mission to transform natural resources into prosperity and sustainable development. Headquartered in Brazil, Vales operates in over 30 countries and specializes in iron ore and nickel, including other commodities such as copper, coal, manganese, ferroalloys, fertilizers, cobalt and platinum group metals.
How is Vale’s management team leading the industry?
Vale adopts management procedures compatible with the regulations of the markets in which it operates and seeks to guarantee international standards of transparency. At Vale, innovation continues to be the foundation for its development, which helps to create and achieve their vision of being the most important natural resources company in the world by creating long-term value.
2014 Revenue: $37.5 billion
2014 Profit: $657 million
Production notes: Became the world’s largest producer of nickel in 2014
Chief Executive Officer – Murilo Ferreira
With over 30 years’ experience in the mining sector, Murilo Pinto de Oliveira Ferreira has spent his entire career at Vale. He commenced his professional career in 1977 as a financial and economic analyst with Vale, and was appointed as president and CEO in May 2011.
Chief Financial Officer – Luciano Siani
As Vale’s Chief Financial Officer, Luciano Siani has an extensive professional experience in the areas of finance, capital markets and strategic planning. Before being appointed CFO, Siani held the positions of global director of Strategic Planning and global director of Human Resources and Governance for the company.
Executive Director – Galib Chaim
Galib Chaim took up the post of executive director, Capital Projects in November 2011. He has worked at Vale and its subsidiaries since 1979, notably in capital project management, international project implementation and corporate relations with government and private sectors. He graduated in engineering at Universidade Federal de Minas Gerais and obtained an MBA in business management at Fundação Getúlio Vargas, both in Brazil.
Barrick profit beats expectations as copper, gold prices up
Barrick Gold has reported a 78% jump in first-quarter profit, beating analyst expectations thanks to rising gold and copper prices, and said it was on track to meet annual forecasts.
Production in the second half is expected to be higher than the first, the gold miner said, thanks in part to the ramp-up of underground mining at the Bulyanhulu mine in Tanzania and higher expected grades at Lumwana in Zambia, reports Reuters
Barrick’s first-quarter gold production fell to 1.10 million from 1.25 million ounces due partly to lower grades at its Pueblo Viejo mine in Dominican Republic.
Adjusted profit surged 78% to $507mn in the quarter ended March 31, from $285mn a year earlier, and Barrick announced a 9 cent per share quarterly dividend.
Stronger prices helped boost Barrick’s revenue from its copper mines in Chile, Saudi Arabia and Zambia by 31% from the fourth quarter. Overall earnings per share were $0.29, ahead of analysts’ estimate of $0.27.
“We expect a positive stock reaction to the earnings beat and strong cash flow,” said Credit Suisse analysts.
Potential for South Africa merger
Barrick CEO Mark Bristow, who has championed mergers across the gold industry, said he backed the idea of South Africa-listed miners Goldfields and AngloGold Ashanti combining.
Speculation has been swirling around the two companies and Sibanye-Stillwater, whose CEO Neal Froneman floated the idea of a three-way merger.
“I’m a South African, and this country has such a great mining history and it would be great to see a real gold business come out of the many failed discussions that we’ve seen,” said Bristow.
Goldfields declined to comment. In a statement, AngloGold Ashanti said it was focused on delivering on its growth plan to unlock value from its portfolio of gold assets.
Bristow also said he had met with the Democratic Republic of Congo’s new mines minister and other officials and was continuing to work on getting $900mn belonging to its Kibali mine joint venture out of the country.
“We have a solution, it just needs to be sanctioned by the appropriate authorities which haven’t been around for a while,” he said, referring to a recent government overhaul by President Felix Tshisekedi.