Anglo American names new finance director

Global mining company Anglo American Plc on Friday named a new finance director with a track record in cost-cutting and debt reduction at Australian iron ore giant Fortescue.

Anglo American has been among the companies hardest hit by a deep commodities slide that last year saw miners stack up uncomfortable levels of debt and announce a flurry of asset sales.

Miners and commodity markets have since recovered and Anglo's shares have risen around 200 percent this year. On Friday, they eased around a percent in line with the broader sector.

Stephen Pearce, chief financial officer at Fortescue Metals Group Ltd, will join the Anglo American board on Jan. 30 and take up his position as CFO in April, allowing a transition period.

His predecessor Rene Medori, who leaves Anglo American at the end of next year and will step down from the board next April, announced his retirement in April this year.

Pearce, 52, has been CFO of Fortescue Metals Group since 2010 and has around 30 years experience in mining and energy.

He helped to steer Fortescue through strong growth and also had to address the challenges of last year's slump in iron ore prices, in part through highly competitive cost-cutting.

"His strong relationships with the debt and equity capital markets have proven immensely valuable in his role at Fortescue, as has his work across complex cost and other efficiency performance programmes," Anglo Chief Executive Mark Cutifani said in a statement on Friday.

"Through the portfolio restructuring and business improvement and efficiency programmes, we will create a very different investment proposition for Anglo American's shareholders," Pearce said.

Analysts agreed he was a strong choice.

"The critical issue will be whether he continues the conservative discipline that we have seen take precedence under Rene Medori over last few years," Paul Gait of Bernstein said.

"The general consensus would be that he did a good job at FMG, focussing on cutting costs and paying down debt," Edward Sterck of BMO Capital Markets said.

In response the commodities slump, Anglo American announced plans to slim down to 16 core assets from 45 previously, focusing on diamonds, platinum group metals and copper.

Its most striking asset disposal so far has been the sale of its niobium and phosphate businesses in Brazil to China Molybdenum for $1.5 billion, which analysts said was a big success towards shoring up its balance sheet.