Rio exec to lead Gindalbie Metals

Gindalbie Metals has appointed former Rio Tinto executive Dale Harris as its new managing director to succeed the departing Tim Netscher, on a package about half that of his predecessor.

Mr Harris is a former chief operating officer at Rio Tinto Iron Ore and has also previously led Rio's Perth operations centre.

He will take the reins at the beginning of next month in line with a planned succession for Mr Netscher.

Mr Netscher's contract had been due to expire in June but he agreed to stay on until the end of the year to provide stability at the top while the company ramped up its Karara iron ore project in the Mid West.

Gindalbie chairman Keith Jones said today that Mr Harris's deep understanding of the iron ore business made him an ideal candidate to take the helm at Gindalbie.

"Dale's credentials, experience and achievements in the iron ore sector speak for themselves, including a distinguished career at Rio Tinto which saw him play a key role in the major expansion of Rio's iron ore business in Western Australia and the implementation of the technological breakthroughs with Rio's Perth operations centre which have attracted global attention," Mr Jones said.

Mr Harris will receive a $600,000 salary in a remuneration package that includes a short-term incentive bonus of up to 25 per cent of total fixed remuneration and long-term incentive bonus of up to 125 per cent of short-term incentive awarded as share options.

Mr Netscher received a $1.05 million salary with similar incentives upon commencing as Gindalbie chief executive in 2011.

His total remuneration for the 2012-13 financial year reached $1.42 million, including a $1.11 million salary.

Mr Jones said the outgoing Mr Netscher, who will return to his career as a non-executive director and consultant in the resources sector, had worked tirelessly on behalf of shareholders during a difficult period.

Gindalbie announced last month that Chinese steelmaker Ansteel had agreed to provide a further $US230 million injection of working capital into the Karara project, in a deal that would dilute Gindalbie's stake in the project to as little as 38 per cent.

Gindalbie shares were more than 4 per cent higher at 12.5 cents at 12:15PM WST.