BHP Billiton chief executive Marius Kloppers is stepping down after nearly six years as head of the global mining giant.
Mr Kloppers will be replaced on May the 10th by Andrew Mackenzie, the 56-year-old Scottish head of BHP's metals business.
The news came as BHP posted a 43 per cent drop in underlying earnings, compared to a year ago.
Andrew Bolton reports.
BHP Billiton chairman Jac Nasser says despite a plunge in half-year profits, outgoing CEO Marius Kloppers has left the company in great shape.
"Under Marius' leadership we have seen BHP Billiton grow to one of the most valuable companies in the world, and that isn't an opinion - it's there in the results. And, in a sentence, Marius leaves BHP Billiton a stronger, safer and better company."
Mr Kloppers has been running the miner since October 2007.
He steered BHP Billiton through the global financial crisis and the South African warned, just last month, that China's steel surge has peaked and iron ore and steel growth are likely to decline.
In other words, the record commodity prices seen over the past decade will likely not be sustained.
The company has just reported its first-half profits dropped to 4.2 billion dollars on lower and volatile commodity prices.
Underlying earnings -- which exclude one-off writedowns -- dropped 43 per cent to $5.7 billion, which is in line with analysts' expectations.
So is that why he chose to retire now?
He says not.
"Retirement decisions are always difficult and they are especially difficult when you have got one of the best jobs in the world. They are a little easier if you have got people of the quality of Andrew working with you, but after spending time with my family and talking then to Jac and the board after that and reflecting on my 20 years-plus at the company, including nearly six years as chief executive, now is the time for me to pass the baton and for Andrew to take us to greater heights."
That baton is going to 56-year-old Scot, Andrew Mackenzie.
He has more than 30 years' experience in oil and gas, petrochemicals and minerals and joined BHP Billiton in November 2008.
Mr Mackenzie says it's a privilege to be asked to lead one of Australia's great companies and the world's leading diversified natural resources company.
"BHP Billiton is one of the most important resources companies in the world. It is the biggest mining company in the world. We have the licence to operate some of the world's best ore bodies and some of the most distinctive oil and gas fields. That means we have an absolutely critical role to play in ensuring the supply of the basic commodities that the world needs to grow - both in population and in wealth. And you can count on me to continue Marius' success of using the best management techniques possible and the appropriate technology to develop those ore bodies sustainably for the world and for the shareholders."
Mr Mackenzie has been promoted from chief executive of BHP's non-ferrous business, where he's managed 50-thousand people across four continents and oversees BHP's Escondida mine in Chile, the world's largest single source of copper.
He holds a Ph-D in chemistry and has previously worked at BP and Rio Tinto.
A father of two daughters, he speaks five languages, and has lived in six countries.
