Newcrest appoint former Rio executive Ian Smith as new MD

Gold miner Newcrest Mining has appointed former Rio Tinto executive Ian Smith at its new managing director, replacing the outgoing Tony Palmer.

Mr Palmer last month said he would leave the company in May, earlier than the previous timeframe of the middle of the year.

Mr Smith will take up the role in mid-August on a base salary of $1.7 million a year.

His remuneration package will also include a short term incentive of up to 50 per cent of his base salary if he meets targets, and if his performance is rated as outstanding he can double his salary.

Mr Smith has had over 20 years experience in the resources industry, having previously worked for Pasminco, WMC Resources and Rio Tinto.

"The board of Newcrest believes this experience will be important in improving Newcrest's operational outcomes and building shareholder value," Newcrest said.

His current position at Rio Tinto is the global head of operational and technical excellence, based in London.

He will relocate to Melbourne for the Newcrest role.

Newcrest has been battling operational issues at its flagship Telfer gold mine in Western Australia, encountering higher than expected arsenic levels and lower gold grades.

The company has advised its net profit for 2005/06 would range between $125 million and $135 million, after posting a first half profit $74.2 million.

Mr Smith takes over at Newcrest at a difficult time for the company. In February the company revised down its Telfer production forecast by 100,000 ounces to 700,000 ounces for the year.

Newcrest also recently divested itself of its interest in the the joint venture Boddington gold project, to allow it to focus on its Telfer operations, leaving Newmont and AngloGold Ashanti as the remaining joint venture players in Boddington.