Sydney - Mining giant Rio Tinto Thursday gave a vote of confidence in its top two executives by giving them open-ended contracts, with chairman Jan du Plessis praising them for establishing a “track record of delivering on their promises”.
The decision comes just weeks after the Anglo-Australian firm revealed it rejected a potential merger with Swiss mining rival Glencore in July.
Chief executive Sam Walsh, who was appointed in January 2013 after the ouster of Tom Albanese, and chief financial officer Chris Lynch will move on to rolling contracts with a 12-month notice period.
“Since their appointments early last year, Sam and Chris have led a transformation of the business and established a track record of delivering on their promises,” du Plessis said in a statement.
“The board believes Sam and Chris are the best team to lead us into the next phase of the delivery of our strategy.”
Walsh had been on a fixed term ending December 2015, while Lynch - who was appointed in April 2013 - was on a contract expiring in February 2017.
Their salaries are unchanged.
Rio, the world's second-largest mining firm, this month said its September quarter iron ore production had soared to a record high. The commodity dominates Rio's earnings.
Iron ore help Rio to a bumper net profit of US$4.4 billion (R48 billion) in the six months to June 30. - Sapa-AFP