Paul Skinner to step down as chairman of Rio Tinto

31 October 2008

Rio Tinto chairman Paul Skinner, who has put in six years in the company, currently in the middle of a hostile takeover from bigger rival BHP Billiton, is leaving his position when his term ends in late 2009 and is rumoured to be taking up the top job at the oil giant British Petroleum, present chairman Peter Sutherland steps down next year.

Rio Tinto said in a curt statement, "Having served six years as chairman and made a significant contribution to the company, Skinner does not intend to seek a further term," indicatingt that Skinner's decision has not gone down well with the board, which feels he is abandoning ship when it needs him the most, in keeping at bay BHP and an expected forecasting a slowdown in the iron ore market.

In the meanwhile Rio Tinto said that the company's board has started the process of  identifying Skinner's successor, who according to experts will be an insider as he will be more familiar with the workings of the company.

Although BP's board has not yet approved Skinner's appointment, his exhaustive experience of 40 years in Shell will make him the frontrunner to head the company.

Skinner worked at Shell in the UK, Greece, Nigeria, New Zealand, and Norway and was managing director of Royal Dutch-Shell Group as well as Shell Transport and Trading Company. He was also the CEO of Shell's global oil products business.

Skinner became a director and board member of Rio Tinto in 2001 and subsequently its chairman in 2003.