Fortescue Metals Group has announced that its chief executive Andrew Forrest will retire from his current role, and will succeed Herb Elliott as chairman of the company.
Fortescue Metals Group has announced that its chief executive Andrew Forrest will retire from his current role, and will succeed Herb Elliott as chairman of the company.
The company also announced that chief operating officer Nev Power, who joined the business early this year as chief operating officer, will be its new chief executive.
Mr Elliott will become lead independent director in the role of deputy non-executive chairman.
Mr Forrest will retire as chief executive with effect from 18 July 2011, the eighth anniversary of the company's establishment. He will assume chairmanship of the company at the Board's next meeting on 18 August.
Mr Elliott praised Mr Forrest for his passionate and determined efforts over the past eight years to build Fortescue as one of the world's great business and mining success stories.
Mr Forrest said his decision to step back from the day-to-day running of Fortescue did not indicate any lessening of his commitment and passion for the company he founded in 2003.
"Fortescue is now recognised for its ability to deliver on its targets and, with Nev's extensive experience and knowledge available to lead the Company, this is a perfect time for me to move away from my day-to-day, hands-on role," Mr Forrest said.
Mr Forrest said he intended to focus increased energy, time and attention on philanthropic activities, particularly assisting to rid Australia of its Indigenous disparity.
Mr Elliott said Mr Power's extensive hands on mining and construction experience as Chief Executive Australian Operations at Thiess Pty Ltd, together with his broad experience in senior executive positions with Smorgon Steel and within the mining industry made him ideally suited to lead Fortescue as Chief Executive Officer.
"Nev has quickly become an integral part of the Fortescue team and his extensive business experience across the mining, steel making and construction industries give him the perfect background to continue to build Fortescue into one of the world's leading resource houses," Mr Elliott said.
Mr Power said he looked forward to his new role serving Fortescue's extremely talented team in the rapid delivery of the Company's organic growth plans.
"I am surrounded by a very strong team and look forward to supporting them as we build the next major chapters in the Fortescue growth story to 155 million tonnes per annum."
Mr Forrest's move to the role of chairman comes after a Federal Court judge found him in breach of the Corporations Act in February; a decision which many believed would put him in danger of being banned from directing Fortescue.
The Federal Court was ruling on an appeal by the Australian Securities and Investments Commission on a decision that cleared Mr Forrest and Fortescue of misleading investors in regards to agreements with Chinese companies in 2004
Mr Forrest said at the time Fortescue would consider all available legal options after the company and its legal advisers had fully reviewed the decision.
