BHP Billiton plc‘s (LON:BLT) new chairman has defended the global miner’s chief executive officer, Andrew Mackenzie after attacks from activist investor Elliott Advisors prompted speculation a change in boss was imminent.
Pressure been has mounting on BHP Billiton - the world's biggest miner - and its CEO ever since Elliott went public in April with its criticisms of the Anglo-Australian firm’s strategy.
READ: BHP Billiton sees quarterly iron ore output fall but still expects to hit annual production targets
But Reuters reported that BHP Billiton’s chairman, Ken MacKenzie told reporters after his first annual general meeting yesterday since taking office at the start of September: "Any suggestion there is a set timeline around Andrew's tenure is simply false and without merit."
In the meeting, asked by a shareholder whether it was Elliott or the BHP board that was running the company, the chairman replied that "MacKenzie and Mackenzie" were running BHP, although he did not specify the order of the pair who share the same names, but with slightly different spelling.
Reuters said at least five representatives from Elliott Advisors, which holds a 5% stake in of BHP Billiton, attended the meeting in London but did not ask questions from the floor.
Elliott had welcomed the new chairman's appointment back in September.
Work in progress
At the meeting, BHP Billiton’s chairman reiterated that work is in progress to sell its shale assets, which is one of Elliott's main demands, and that further action would take place to refresh the board of directors.
On Wednesday, the miner had reported a 4% drop in quarterly iron ore output following a fire at its Mount Whaleback mine in Australia in June but said it still expects to hit its annual production target.
In an operational review for the quarter ending September 30, the FTSE 100-listed global miner said its iron ore production was 64mln tonnes in the September quarter, versus 67mln tonnes a year ago.