[miningmx.com] — ANGLO American has replaced the head of its Brazilian iron ore operations, which includes its flagship $5bn Minas-Rio project, one of the world’s largest, naming its commercial director as chief executive.
Anglo said Paulo Castellari, currently the commercial director of Iron Ore Brazil, would replace Stephan Weber.
Minas-Rio, bought in 2008 before the financial crisis, has been one of Anglo’s more controversial acquisitions. Anglo has been criticised for overpaying and the project, which will include open pit mines and a beneficiation plant producing pellet feed, has seen cost overruns and delays.
It is currently scheduled to come into full production in the second half of 2013.
Industry investors fretted on Wednesday that the change at the top could mean further problems at Minas-Rio, which is a key growth project for Anglo. That would add to troubles for the miner, already embroiled in a legal dispute in Chile with state copper producer Codelco over southern Chilean assets.
One analyst pointed to the fact that Weber, appointed chief executive of Iron Ore Brazil in 2009, had been well regarded and was on Anglo’s executive committee.
“It makes me think the problems are bigger than Stephan and it is scapegoat time,” the analyst said.
One industry source, however, said the appointment was unlikely to have been sudden, given Castellari had been CEO of Anglo’s phosphates and niobium businesses, based in Brazil, before joining Iron Ore Brazil in May 2011.
“He would not have gone unless there were good chances of bigger things ahead,” the source said.
Weber will leave Anglo to explore other opportunities.
