Mining group Anglo American appoints new chairman

Mining group Anglo American, which recently rejected a takeover bid from rival Xstrata, announced yesterday it had appointed John Parker as its new chairman to replace Mark Moody-Stuart who was retiring.

Mr Parker, chairman of British utility company National Grid since 2002, will take up his new post on August 1. Moody-Stuart steps down after seven years in the job.

Anglo American's chief executive officer Cynthia Carroll said in a statement that Mr Parker would "bring significant insight and experience to the board" while praising Moody-Stuart for reinforcing the group's "position as a modern and responsible mining company."

The change at boardroom level comes as the British-South African firm last month rejected a merger bid by Swiss miner Xstrata, snubbing a move that could have forged the two into one of the world's biggest miners. Xstrata, still eying Anglo, said a merger could lead to potential annual benefits of more $1 billion. However, London-based Anglo American has called the merger offer "totally unacceptable."

A potential tie-up between the pair is the latest sign of consolidation pressure in the sector after the collapse of a deal by miner Rio Tinto with China.

A merger would create a company worth more than Rio Tinto, which recently cancelled a controversial tie-up with China's Chinalco in favour of a joint venture with the world's biggest miner BHP Billiton.

Anglo American has a market worth of about $35 billion and Xstrata $33 billion.