KEY POINTS:
Rio Tinto Group director Jim Leng has quit and will no longer become chairman as announced less than a month ago.
London-based Rio said Paul Skinner had agreed to remain as chairman until mid-2009.
Rio gave no reason for Leng's departure and Amanda Buckley, a Melbourne-based spokeswoman for the company, declined to comment.
Rio Tinto, struggling under US$38.9 billion of debt after acquiring Alcan in 2007, is seeking to complete US$10 billion in asset sales this year to repay loans. Rio said last week that it was in talks with Aluminum Corp of China, known as Chinalco, to raise cash by selling debt and stakes in some units.
"The chairman-elect resigns with no explanation, and that coincides with rumours of a placement to Chinalco,"
Prasad Patkar, of Sydney-based Platypus Asset Management, said yesterday. "It makes you wonder if Rio's board was fractured on how best to address the company's need for debt reduction."
The process to appoint a new chairman has started and is expected to be completed by mid-2009, Rio said.
Leng, deputy chairman of Tata Steel and chairman of the Indian company's European unit, was announced as Skinner's successor on January 14. He was chairman of Corus Group from June 2003 before the company agreed to a 6.2 billion takeover by Tata two years ago.
Leng was also chief executive officer of chemicals maker Laportec from 1995 to 2001 when it agreed to be acquired by German company Degussa-Huels.
Paul Skinner, 63, may be hired by BP as chairman, the Daily Telegraph reported in October.
BP chairman Peter Sutherland has agreed to remain in the post beyond his planned departure date in April, the Financial Times reported on January 31.
- BLOOMBERG
