BHP Anoints Whiz-kid To Top Job

BHP BILLITON has anointed South African-born whiz-kid Marius Kloppers as its new chief executive on the departure in September of its CEO of the past five years, Chip Goodyear.

The appointment of the relatively youthful Mr Kloppers over more seasoned candidates comes at a challenging time for the $US140 billion mining colossus, the burning issue being whether it buys into the North American aluminium shake-up, with both Alcoa and Alcan up for grabs.

Considered by the BHP board to have a marvellous knowledge of the resources industry and strategically brilliant, Mr Kloppers also has deep aluminium experience, having been largely responsible for the building of BHP Billitons aluminium business in South Africa and Mozambique. He is at present BHP Billitons group president, non-ferrous minerals (nickel, copper, aluminium and diamonds), as well as an executive director.

Mr Kloppers is no stranger to merger and acquisition activity and is credited with the well timed $9.2 billion takeover of WMC in 2005, and its seamless integration into BHP Billitons global empire.

That experience could be invaluable should there be any truth in the continued takeover speculation surrounding the $US90 billion Rio Tinto.

One of the two internal candidates long expected to inherit the top job, Mr Kloppers was all smiles yesterday as he moved through BHPs Lonsdale Street head office. But the 44-year-old also comes to the job with a reputation for a no-nonsense approach to the business.

BHP chairman Don Argus yesterday preferred a different description of Mr Kloppers business style. "Marius is an achievement-driven individual."

Mr Argus also dismissed suggestions that Mr Kloppers style was like that of his former boss at Billiton (BHP and Billiton merged in 2001), Brian Gilbertson. Mr Gilbertson was BHP Billitons CEO for six months before his abrupt departure in 2003 because of irreconcilable differences with the board over BHP Billitons strategic direction.

"Marius is his own man," Mr Argus said.

"We are in a time of considerable change in our industry, with the emergence of new markets and sources of supply. Marius vast experience in the resources sector and his demonstrated strategic capabilities provide the skills we need in the next leader," Mr Argus said.

As luck would have it, Mr Gilbertson is currently in Australia promoting his new private equity fund Pallinghurst. He said yesterday that Mr Kloppers was an inspired appointment. "He can be tough and ruthless when he needs to be and he can be absolutely charming, which is what he is most of the time," Mr Gilbertson told Bloomberg.

While a win for internal candidates over the four external candidates BHP had short-listed for the position, Mr Kloppers appointment to the top job is expected to result in the departure of several of the internal candidates.

The other leading internal contender for the job was former Broken Hill boy and BHPs group president of carbon steel materials, Chris Lynch. There was debate yesterday whether Mr Lynch, a former senior Alcoa executive, will now move on from BHP Billiton.

Neither Mr Lynch nor Mr Kloppers was available for comment yesterday, although a statement from BHP Billiton quoted Mr Kloppers as being "humbled by the trust placed in him by the board".

BORN August 1962, South Africa.

Married to high school sweetheart Carin. Three children. Lives in Melbourne, maintains home in South Africa.

SALARY IN 2006 $US1.7 million ($A2 million). Can expect about $US6.5 million ($A7.9 million) as CEO.

Holds BHP Billiton shares worth $13.8 million, plus rights and options over a further 765,071 shares ($24.12 million fully exercised).

Degree in chemical engineering from "Tukkies" (University of Pretoria, previously Transvaal University College), a PhD from MIT (US) and an MBA from Insead (France).

EARLY CAREER Petrochemicals with Sasol and materials research with Mintek, both in South Africa. After obtaining his MBA he was a management consultant with McKinsey & Co in the Netherlands.

PAST 14 YEARS Poached in 1993 by Gencor, a predecessor to Billiton, the aggressive out-of-Africa resources group headed by Brian Gilbertson before its "merger" with BHP in 2001. Helped establish Billitons aluminium business in South Africa and Mozambique, held a variety of roles — general manager of Hillside Aluminium (South Africa) and chief operating officer of the aluminium division.

After the creation of BHP Billiton, he became chief marketing officer and then chief commercial officer, where he created a name for himself as being somewhat daring in trying to rewrite key aspects of longstanding practices in contracts between suppliers and customers.

Credited with seamless integration of WMC, acquired for $9.2 billion in 2005.

JANUARY 2006: Confirmed as a rising star with his appointment as group president, non-ferrous materials, and an executive director of the company.

http://www.bhpbilliton.com

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