By Rhiannon Hoyle
SYDNEY--Rio Tinto PLC's (RIO) head of business development has
left the company at a time when the world's second-largest iron-ore
producer is working to overhaul its business following massive
writedowns last year and its first full-year loss.
Philip Mitchell, who spearheaded mergers and acquisitions talks
for the Anglo-Australian mining titan and was in the role for the
past six years, is no longer with the company, a person familiar
with the situation said. The person didn't give a reason for Mr.
Mitchell's departure.
Rio's director of business development for Australia, Matt
Halliday, will take over the role on an acting basis, according to
Bloomberg News, which cited an internal company memo.
Rio Tinto Chief Executive Sam Walsh last year pledged to pursue
greater value for shareholders and slash costs after the company's
balance sheet was hit by a sharp drop in commodity prices and more
than US$14 billion in impairment charges. That included switching
its focus from mergers and acquisitions to cost cutting and asset
sales.
Rio's asset writedowns stemmed in large part from costly and
poorly timed acquisitions, including the US$38 billion purchase of
Canadian aluminum company Alcan at the height of the market in
2007. The company, which cut costs by around US$2 billion last year
and will look to strip a further US$3 billion out by the end of
this year, will report is full-year 2013 results Thursday.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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