* Some likely contenders have ruled themselves out
* Rio aims to restore reputation with communities
* Australians want a local new chief executive
By Melanie Burton and Helen Reid
MELBOURNE/JOHANNESBERG, Nov 30 (Reuters) - Rio Tinto will
look to a handful of external candidates in a narrowing field
for its new chief executive, as the miner tries to win back
investors dismayed by the blasting of an ancient Australian rock
shelter, bankers and investors say.
The top priority for a new CEO will be strong stakeholder
management skills, as the world's biggest iron ore miner begins
to repair its relationships with Aboriginal groups and navigates
a host of government issues elsewhere, they said.
Some major mining executives have ruled themselves out, and
there is not a long list of acceptable candidates with the skill
set and appetite for the top job, according to interviews with a
dozen investors and analysts.
Front runners are seen as former BP Chief Financial
Officer Brian Gilvary, Anglo American finance director
Stephen Pearce, OZ Minerals CEO Andrew Cole, and former
Fortescue Metals Group CEO Nev Power.
"More than anything - it doesn't matter whether they're
within or outside the sector - I think they need someone who's a
very good manager," said George Cheveley, portfolio manager at
Ninety One in London.
Stakes are high. The board is under pressure to make a
strong pick before current CEO Jean-Sébastien Jacques steps down
in March, following public ire over the company's initial
response to the Australian cave destruction.
As well as navigating Australia's trade tensions with China,
potential aluminium plant closures and job losses, a new CEO
will have to manage cost overruns in Mongolia, a new iron ore
mine in Guinea and legacy issues in Bougainville.
Some leading mining chief executives such as Newmont Corp's
Tom Palmer and Anglo American's Mark Cutifani have
publicly ruled themselves out, while Newcrest Mining's
Sandeep Biswas has said he is very happy where he is.
Given community relations issues across the sector, some
favour a new CEO from outside mining.
"It appears to me that the mining sector is challenged in
finding appropriate and effective executive leadership," said
Doug McMurdo, chairman of Local Authority Pension Fund Forum
(LAPFF) which represents 82 local authority pension funds that
have 300 billion pounds under management.
Australian investors, meanwhile, insist that a new CEO must
have a depth of local experience and would better be based in
the country that provides 85% of the company's profits, if not
the actual state itself, Western Australia.
Some hurdles are of the board's own making, after chairman
Simon Thomson's handling of the cave blasts has cast a shadow
over his tenure.
That may make a potential CEO think twice before accepting a
role where the person with whom he works most closely may
abruptly change, said one corporate advisor, who declined to be
named because of the sensitivity of the topic.
Some investors believe a candidate out of left field is also
a possibility, and point to precedents.
Iron ore miner Fortescue's Elizabeth Gaines came from the
travel industry, although she had spent time on the board, while
the former CEO of Denmark's oil and gas giant Orsted
came from Lego and the financial industry.
(Reporting by Melanie Burton in Melbourne and Helen Reid in
Johannesberg; additional reporting by Ron Bousso, Ron Bousso,
Zandi Shabalala and Clara Denina in London; editing by Richard
Pullin)