TIDMXTA
RNS Number : 4607C
Xstrata PLC
16 April 2013
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN
PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD
CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH
JURISDICTION
NEWS RELEASE
Mick Davis not taking up role as CEO of Glencore Xstrata on
completion of merger, other Executive Committee members to step
down
Zug, 16 April 2013
Xstrata plc Chief Executive Officer Mick Davis has agreed with
Glencore International plc to not take up the six month role of
Chief Executive Officer and Executive Director of Glencore Xstrata
plc ("Glencore Xstrata" or "the Combined Group") following
completion of the merger.
Consequently Mr Davis will step down from Xstrata plc upon
completion of the merger, currently expected to be 2 May 2013,
allowing Glencore CEO Ivan Glasenberg to assume the role of Chief
Executive Officer of the Combined Group from the effective
date.
Mr Davis has agreed to act as consultant to the Combined Group
until 30 June 2013 in order to support the integration process.
Pursuant to the terms of the Merger, Mr Davis's position on the
Glencore Xstrata Board will be taken by a current Xstrata executive
from the effective date.
A number of other Xstrata plc Executive Committee members have
indicated their intention to step down from their roles on the
effective date. As previously announced, Xstrata's Chief Financial
Officer Trevor Reid has decided not to take up the position of
Chief Financial Officer of Glencore Xstrata plc upon completion of
the merger. Xstrata Copper Chief Executive Charlie Sartain, Xstrata
Nickel Chief Executive Ian Pearce, and Loutjie Smit, Interim Chief
Executive of Xstrata Alloys, will leave the company on the
effective date. Executive General Manager, Strategy and Corporate
Affairs Thras Moraitis, and Chief Legal Counsel Benny Levene will
also step down on the effective date but, along with Trevor Reid,
have agreed to act as consultants to the Combined Group for a
period of up to six months following the effective date in order to
support the integration of their respective functions.
Xstrata plc Chairman Sir John Bond said:
"The building of Xstrata over the past decade from modest
origins to a FTSE 20 global diversified mining major has been one
of the outstanding entrepreneurial achievements of our time. Based
on a vision about the impending mining super cycle and the
opportunities it created for a nimble new mining group, it was the
exceptional leadership, drive and business acumen of Mick Davis and
his team that turned this vision into reality. They built a
business that embedded an entrepreneurial spirit within a committed
but lean management team, combined with a clear sense of purpose
and dedication to sustainability, to deliver value in its broadest
sense to the many stakeholders in our business. As Xstrata
transitions into the merged company with Glencore, Mick and his
team can look back with pride on a decade of exceptional
achievement. They leave Xstrata with the warmest appreciation of
the Board for their outstanding accomplishments."
Mick Davis commented:
"I look back on the past eleven years at Xstrata with enormous
satisfaction. I have had the great pleasure and privilege of
working with a talented and committed group of leaders. Together we
were able to build a $50 billion global company from a $500 million
minnow, delivering significant returns to our shareholders in the
process. At the same time we created a unique culture that
empowered individuals to perform and identify opportunities to
create value, while making a positive and lasting contribution to
the communities and countries in which we work.
"My executive team and I are pleased to hand over to the new
Glencore Xstrata a company with a strong legacy for value creation
and growth, a high quality portfolio of operations and growth
options, supported by a very healthy balance sheet. As importantly,
we are certain that each of our 84,000 employees and contractors
will bring to the new merged entity the unique set of capabilities
and values which have made Xstrata so successful and, in
particular, an approach to sustainability which is looked to as the
model for the industry. All those who travelled on the journey
enjoy my most sincere respect and of course great appreciation. At
Xstrata we have been proud not only of producing the vital building
blocks of society, but also of the way we have gone about this
quest - with a clear understanding of the need to do so in an
entrepreneurial and sustainable manner that creates shared value
for all stakeholders. I look to my colleagues to keep this legacy
alive within the new Glencore Xstrata for many years to come. "
As referred to in the merger update announcement released by
Glencore today, following receipt of approval in China and Glencore
having now given effect to the commitments required by the European
Commission, completion of the Merger is now only conditional upon
completion of the Xstrata court process as further set out in the
New Scheme Document in connection with the Merger published by
Xstrata on 25 October 2012. The expected timetable in connection
with the Merger is as set out in Glencore's merger update
announcement.
Ends
Neither the content of the Xstrata's website nor the content of
any other website accessible from hyperlinks on the company's
website is incorporated into, or forms part of, this
announcement.
Xstrata contacts
Alison Flynn
Telephone +44 20 7968 2838
Mobile +44 20 7769 314374
Email aflynn@xstrata.com
www.xstrata.com
Aura Financial Stockwell Communications
Michael Oke +44 20 7321 0000 Philip Gawith +44 20 3370 0013
Andy Mills
Notes to editors
Mick Davis
Mick Davis became CEO of Xstrata AG in October 2001. He joined
Xstrata from Billiton, where as Executive Director and Chief
Financial Officer he was instrumental in achieving the merger of
BHP and Billiton. At Xstrata, he set about transforming a heavily
indebted $500 million ferroalloys and zinc business with limited
growth options into a major mining company. The first step on this
journey was an Initial Public Offering in London in March 2002 to
create Xstrata plc and the simultaneous acquisition of Glencore's
South African coal assets to expand the portfolio and create
scale.
Since that time, under his leadership, Xstrata has increased
operating profit by 2,800%, completed $35 billion of acquisitions
in 40 separate transactions, raised $17 billion from the capital
markets, delivered a total of $2.2 billion of real cost savings and
successfully developed 23 major growth projects, including the
recently commissioned Antapaccay copper mine in Peru and the newly
producing Koniambo nickel mine in New Caledonia. A further 10 major
projects are on track to reach completion in the next two
years.
During this period Xstrata's Total Shareholder Return of 338.5%
outstripped the FTSE 100 performance of 92.1% and the FTSE 350
mining index performance of 260.8%. Xstrata plc has been recognised
as a leading company in the mining sector for sustainability
performance, including as sector leader in the Dow Jones
Sustainability Index for five consecutive years.
Charlie Sartain
Charlie Sartain originally worked with MIM Holdings for more
than 20 years, initially in a number of mining engineering and
management roles at Mount Isa Mines, then as General Manager of the
Ravenswood Gold operations and General Manager of the Ernest Henry
Mine, all in Queensland, Australia. In mid-2000 he was appointed
General Manager of Minera Alumbrera in Argentina, and then
Executive General Manager - Latin America in mid-2002. In July 2003
Charlie was appointed Chief Executive Copper Americas for Xstrata,
before being appointed Chief Executive of Xstrata Copper in January
2004.
Charlie is a director and immediate past Chairman of the
International Copper Association, a Fellow of the Australian
Academy of Technological Sciences and Engineering, a member of the
Australasian Institute of Mining and Metallurgy, a member of the
Senate of the University of Queensland, Chairman of the Advisory
Board of the Sustainable Minerals Institute at the University of
Queensland, a director of Wesley Research Institute and a former
director of the Australian Government's Council on Australian Latin
America Relations.
Ian Pearce
Ian Peace is currently Chairperson of the Mining Association of
Canada. He has worked for more than 27 years in the metallurgy and
mining field. He joined Falconbridge in 2003 where he spearheaded
the advancement of major growth initiatives as Senior Vice
President of Projects, before being appointed chief operating
officer in 2006. He was appointed Chief Executive of Xstrata Nickel
following the acquisition of Falconbridge in August 2006.
Previously, Ian worked on Canadian oil sands projects as well as
metallurgical and mining projects for Fluor in Canada, Indonesia,
Chile and South Africa. He holds an engineering HND in mineral
processing and a BSc from the University of Witwatersrand.
Ian sits on the board of directors of the Mining Association of
Canada and the Nickel Institute, and is on the Advisory Board of
Canada's Most Powerful Women: Top 100.
Further Information
Defined terms used in this announcement, unless defined herein,
have the same meanings as in the new scheme circular published by
Xstrata plc on 25 October 2012.
This announcement is for information purposes only. It is not
intended to and does not constitute, or form part of, an offer,
invitation or the solicitation of an offer to purchase, otherwise
acquire, subscribe for, sell or otherwise dispose of any
securities, or the solicitation of any vote or approval in any
jurisdiction, pursuant to the Merger or otherwise nor shall there
be any sale, issuance or transfer of securities in any jurisdiction
in contravention of applicable law.
This announcement does not constitute a prospectus or prospectus
equivalent document.
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