Former Orica (ORI) chief executive Malcolm Broomhead will return to the company in 2016 as its chairman from the start of the New Year.
Mr Broomhead ran the explosives and mining services company from 2001 to 2005 when he retired to undergo treatment for cancer which was successful.
He will replace current chair Russell Caplan who will retire on December 31 after eight years on Orica’s board.
Orica CEO Alberto Calderon was a former board member of Orica before stepping in as interim CEO to replace Ian Smith who left the company in controversial circumstance in early 2014.
Mr Calderon was later made permanent CEO and has already moved to revamp the company by selling off assets and starting a round of cost and job cuts.
He will be familiar with Mr Broomhead’s leadership style. Mr Broomhead is a director of BHP Billiton and was on the mining giant’s board when Mr Calderon was a senior executive at the company. He left BHP when it chose Andrew McKenzie as its new CEO.
Mr Caplan yesterday praised his replacement, saying in a statement:
"Malcolm is a highly experienced business leader with extensive experience in industrial and mining companies globally. He brings to the board a deep understanding of both the mining and mining services sector, and exceptional leadership skills through every part of the resources cycle," Mr Caplan said.
His retirement comes two months after Mr Calderon unveiled a new operating structure at Orica as part of his revamp of the company.
The new model give the heads of Orica’s four regional businesses more power and accountability. Under the previous regime, Orica’s regional executives across its global operations had no access to their division’s earnings or costs data, with only the chief executive having access to that information. That has now changed with a more decentralised structure in place.
"After eight years on the Orica board, the time is right for me to leave…and for a change in board leadership," Mr Caplan said.
Orica shares edged up 1% yesterday to end at $18.74.
