Rio names British American Tobacco's du Plessis as chairman

The appointment follows an unprecedented stoush with former chairman-designate Jim Leng resigned after less than a month in the role. He had clashed with chief executive Tom Albanese over Rio's plan to sell assets to China's Chinalco to reduce the mining company's US$38.9 billion of debt, according to a Financial Times report at the time.

Du Plessis replaces former chairman Paul Skinner, who stayed on when Leng bailed out and will step down at the AGM on April 20. De Plessis joined the board as a non-executive director on September 1.

"Our immediate focus must be on giving Rio Tinto the best possible platform to create shareholder value and to weather the tough and uncertain global economic conditions," de Plessis said in a statement. "Pursuing the completion of the transaction with Chinalco will give Rio Tinto this platform, from which we will be even better placed to prosper when we see economic recovery."

Du Plessis also singled CEO Albanese out for praise, saying he leads a "strong management team."

He will continue in his role at British American Tobacco, which he has held since 2004, and is also a non-executive director and chairman of the Audit Committee of Lloyds Banking Group, a role he plans to relinquish.

Rio owns 79% of the aluminium smelter at Bluff, whose output dropped by 36,000 tonnes to 315,000 tonnes last year, according to the company's annual report.

Output was reduced by dwindling power supplies when a drought early last year lowered hydro-lake levels and subsequently a transformer failed, knocking out the smelter's third potline.

Shares of Rio, which trade in the UK and Australia, fell 5.7% to 1982 pence in London overnight. The shares have gained almost 40% in the past three months after slumping through last year.

By Jonathan Underhill

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