BHP iron ore chief quits

“Jimmy is a very experienced business leader who has more than 20 years’ experience with the Group,” said BHP Billiton Group Executive and Chief Executive Ferrous and Coal Marcus Randolph.

“He will build on Ian’s successful leadership to continue to grow the Iron Ore business, while ensuring it continues to operate to world class standards. Jimmy’s background includes successful roles as President of the Energy Coal and Stainless Steel Materials business groups and he brings deep operating and project experience to his new role in Iron Ore. I know that he and his family are looking forward to returning to Perth.”

Ashby made headlines 10 days ago when he announced that China’s steel growth rates “will flatten, and they have flattened,” before adding that “The big infrastructure build clearly will come to some end.” The negative message hacked billions off the mining majors. China’s ferocious demand for iron ore has been a central feature of the global mining industry over the past decade and the driving force behind the spectacular profit growth at mining’s big three – BHP, Rio Tinto and Brazil’s Vale.

BHP’s iron ore business is the company’s biggest revenue earner and the most profitable arm of the company. Ashby’s departure comes as BHP rolls out aggressive plans to expand its iron ore operations in the Western Australian Pilbara. The company plans to spend $11 billion to nearly double capacity to 240m tonnes per year.

In a rare statement to the media on the management shift, Reuters reported BHP Billiton CEO Marius Kloppers hailing Ashby’s leadership of the division:

“This is a highly efficient operation that is on track to deliver substantial, transformational growth over the next decade, which is testament largely to his leadership,” Kloppers said in an emailed statement to Reuters.

Image of Ian Ashby speaking at an iron ore conference in Perth