London listed mining giant Vedanta Resources has appointed Tom Albanese, former Chief Executive of Rio Tinto, as chairman of its subsidiary Vedanta Resources Holdings Ltd.
“Tom Albanese is joining the Group as the Chairman of its subsidiary, Vedanta Resources Holdings Ltd. In this role, Tom will be actively involved in continuing to develop the company’s strategy, policies and growth objectives,” Vedanta said in a statement.
This marks the return of Albanese into the mining industry eight months after he had stepped down as the Chief Executive of the British-Australian Rio Tinto over a $14 billion write down by the mining giant in January owing to some bad deals.
The write down pertained primarily to two buyout deals - Riversdale and Alcan - under his 6-year leadership.
He will not be part of Vedanta’s main firm (the listed entity) but will head Vedanta Resources Holdings, which is in between the main company and its operating subsidiaries, Sesa Sterlite and Konkola Copper Mines.
“I am excited to welcome Tom to our team and I look forward to him bringing his considerable experience and energy to Vedanta to support our twin aims of delivering sustainable growth and creating long-term value for our shareholders,” Vedanta Chairman Anil Agarwal said.
Commenting on his new role, Albanese said he is “equally excited to be working with Vedanta” and has recently visited many of company’s operations. “I am impressed with Vedanta’s world class businesses and its Board’s vision,” he added.
Despite being reportedly forced out of Rio Tinto, Albanese is viewed as a top shot of the global mining industry and his appointment has given Vedanta its “first global face”, industry insiders said on his appointment.
The Anil Agarwal-led company, despite having assets across the world and being part of FTSE 100, is considered India-focused miner only by Vedanta’s global peers and many investors.
Last month, the company has completed restructuring of its subsidiaries by merging two group firms, Sesa Goa and Sterlite Industries. The new company, Sesa Sterlite, has also been made holding firm of all Vedanta group entities, except Konkola Copper Mines in Zambia.