Turquoise Hill ap­points in­terim CEO

The UB Post - - Business & Economics -

Turquoise Hill Re­sources an­nounced that its board of di­rec­tors has ap­pointed Chief Fi­nan­cial Of­fi­cer Luke Colton to the ad­di­tional po­si­tion of in­terim Chief Ex­ec­u­tive Of­fi­cer, ef­fec­tive July 1.

“The board is in the fi­nal stages of a ro­bust CEO search and ex­pects to make an an­nounce­ment in the near term. As pre­vi­ously dis­closed, cur­rent CEO Jeff Tyge­sen is re­tir­ing from the com­pany,” Turquoise said in a state­ment.

Prior to join­ing Turquoise Hill in Oc­to­ber 2017, Colton worked for Rio Tinto in var­i­ous prod­uct groups, in­clud­ing En­ergy & Min­er­als and Iron Ore. Prior to join­ing Rio Tinto, he was a se­nior ac­coun­tant with Ernst & Young.

The com­pany an­nounced the re­tire­ment of its for­mer CEO Jeff Tyge­sen in May. The board of di­rec­tors di­vulged that it was in the process of con­sid­er­ing suit­able can­di­dates, in­clud­ing those from Rio Tinto.

The sec­ond-largest share­holder of Turquouse Hill Re­sources, Sail­ingS­tone Cap­i­tal Part­ners re­cently called for the ap­point­ment of a “truly in­de­pen­dent” CEO and man­age­ment.

Sail­ingS­tone Cap­i­tal Part­ners, an em­ployee-owned US based in­vest­ment group, which holds an 11.3 per­cent stake in Turquoise Hill, has been crit­i­cal of the ma­jor­ity owner Rio Tinto for ex­ert­ing too much in­flu­ence on the Oyu Tol­goi mine. The mi­nor­ity share­holder called on the com­pany to ap­point a truly in­de­pen­dent chief ex­ec­u­tive that is not a sec­onded Rio Tinto ex­ec­u­tive.

“The re­cent re­tire­ment of Turquouse Hill’s CEO, Jeff Tyge­sen, pro­vides you with an op­por­tu­nity to ac­cel­er­ate the tran­si­tion to­wards a gov­er­nance struc­ture which is more con­sis­tent with a stand­alone, pub­licly traded com­pany,” Sail­ingS­tone said in a US reg­u­la­tory fil­ing, the Fi­nan­cial Times re­ported.

Sail­ingS­tone said in its fil­ing that the con­flict of in­ter­est has neg­a­tively af­fected the share price of Turquoise Hill, which un­der­per­formed its peers even though it has a con­trol­ling in­ter­est in one of the world’s big­gest cop­per de­posits.

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