AngloGold names former BHP exec as new CEO

AngloGold Ashanti Ltd yesterday appointed former BHP Group executive Alberto Calderon to its top job, ending a nearly year-long head hunt that’s weighed on the shares of the No. 3 gold producer.

Calderon, a 61-year-old Colombian who once served as a junior minister in a government that fought drug lord Pablo Escobar, will join AngloGold on September 1.

The Ivy League economist, who was in the running to become chief executive officer at BHP before the position went to Andrew Mackenzie, served as CEO of Melbourne-based explosives maker Orica Ltd until February.

AngloGold hasn’t had a permanent CEO since Kelvin Dushnisky’s abrupt departure last September after holding the position for just two years.

The Johannesburg-based miner’s shares have underperformed peers in the past year as the CEO hunt dragged on and the company had to suspend operations at a mine in Ghana.

While Calderon’s experience lies in industrial metals, coal and oil, his background may help AngloGold to advance its key expansion projects in Colombia.

“It’s not going to be easy, but I hope I can explain what a world class mining company like AngloGold can do,” Calderon said in a video interview, commenting on his task of getting the Colombian authorities to approve the miner’s Quebradona and Gramalote projects. “I think I have a good chance of persuading them.”

While AngloGold emerged from a mining empire created by Ernest Oppenheimer a century ago, it sold its remaining South African mine last year to focus on more profitable operations elsewhere in Africa, Australia and the Americas.

The new CEO may face questions about whether the company could

finally move its primary listing from Johannesburg — an idea that’s been bandied about for years.

“It’s not the immediate priority for me but it’s something that in due time the board and myself will consider again and give our views to the market,” Calderon said.

A potential London listing is among the options that Calderon will consider as he tries to close the discount at which AngloGold trades to larger rivals Newmont Corp and Barrick Gold Corp.

“If we can bring credibility back to our projects, be more predictable in our production and cost focus, if we are seen as the excellent operators that we are, I think we can bring a lot of that discount value back into this company and that’s my plan,” he said.

Calderon will take over from interim CEO Christine Ramon, who will return to her previous position as AngloGold’s chief financial officer.

During her year at the helm, Ramon sketched out a plan to expand output at key operations in Tanzania, Ghana and Guinea, while potentially investing more than $2 billion in two new mines in Colombia from 2022.

Calderon, who gained experience of South Africa during his time as head of BHP’s aluminium business, was CEO of both Cerrejon Coal Co and Ecopetrol in his home country of Colombia.

Prior to that, he held leadership positions at the International Monetary Fund.

“It’s an excellent appointment, and it removes uncertainties about the leadership crisis,” said Rene Hochreiter, an analyst at Noah Capital Ltd. “In Colombia, he can probably get things done better than say an American or South African.”