MELBOURNE (Reuters) - Ivanhoe Mines (IVN.TO) appointed a new chief executive to replace founder Robert Friedland, who was ousted last month when the Canadian miner’s majority owner, global miner Rio Tinto (RIO.AX), took control over management.
Ivanhoe said late on Tuesday that Kay Priestly, who served as interim CEO, would stay on as the new chief executive. Ivanhoe also appointed Chris Bateman as chief financial officer.
Priestly and Bateman, both plucked from Rio Tinto’s (RIO.L) ranks, take on their roles just as Ivanhoe’s key asset, the massive Oyu Tolgoi copper and gold mine run by Rio Tinto in Mongolia, moves toward production.
Priestly was chief financial officer of Rio Tinto’s global copper division while Bateman was chief financial and business development officer for Rio’s diamonds and minerals group.
Rio Tinto won management control of Ivanhoe last month in return for agreeing to buy more shares in the company and guaranteeing $3.3 billion needed for Oyu Tolgoi to reach commercial production on target in the first half of 2013.
Ivanhoe’s shares closed 1.6 percent lower at C$11.35 ($11.53) on Tuesday.
($1 = 0.9843 Canadian dollars)
Reporting by Sonali Paul; Editing by Matt Driskill