Diggers not dealers

4 December 2017 By Clara Ferreira Marques

After a nine-month search, the $90 bln miner picked director Simon Thompson over former Xstrata boss Mick Davis to lead the board. His mining, emerging-market and buyout knowhow should prove useful. A fresh push to squeeze out cash is another sign Rio is keeping risks calculated.

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Rio Tinto said on Dec. 4 that Simon Thompson, an existing board member and former Anglo American executive, would be its chairman starting in March 2018, succeeding Jan du Plessis.

Former Xstrata Chief Executive Mick Davis had been the lead candidate, according to media reports in November. A group of powerful shareholders objected, however, removing him from the running.

Thompson was chairman of Tullow Oil from 2012 to 2017, and has been chairman of private equity firm 3i Group since 2015, a position he will retain. He has been on Rio's board since 2014.

Rio also said on Dec. 4 it expects to generate $5 billion of additional free cash flow over the next five years. It is targeting $1.5 billion of additional annual free cash flow from 2021.

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