BHP board meets amid talk of new chairman

BHP Billiton's board has begun meeting in Melbourne, amid speculation the world's biggest miner may soon choose a replacement for long-time chairman Don Argus. Speculation has been mounting in recent weeks that BHP Billiton is set to announce a replacement for the 71-year-old board Mr Argus, who has been chairman since 1999. BHP-Billiton's 14-member board began meeting in Melbourne on Monday, sources confirmed. The company's board meetings typically take place each month and last for two to three days. No one from the company would confirm reports that the board intended to decide on a replacement for Mr Argus at this week's meeting. Attention on a replacement has focused on fellow board members Jacques Nasser and John Schubert. Mr Nasser, the child of Lebanese immigrants to Melbourne, has been with BHP Billiton board since 2006 and was formerly president of Ford Motor Company, where he stayed until 2001. He currently lives in the US state of Michigan. Dr Schubert is a former chief executive of building materials group Pioneer International and a former president of the Business Council of Australia. He is a chemical engineer who joined the BHP Billiton board in 2001 as a director and is also chairman of Commonwealth Bank of Australia and a director at Qantas. Australian Shareholders' Association spokesman Duncan Seddon the association has been been pleased with the way Don Argus has run the BHP-Billiton board. He said Mr Schubert and Mr Nasser appeared to have similar expertise, if either was chosen to take over from Mr Argus. Pengana Capital fund manager Tim Schroeders said small shareholders had welcomed the way Mr Argus has operated at BHP Billiton. "Generally he is perceived as a fair and forthright character,'' Mr Schroeders said. He said Mr Argus' best achievement at BHP Billiton had been to walk away from a takeover bid of rival mining company Rio Tinto. "A lot of people would have allowed ego to stand in the way ... but he took a hard and fast objective view of the situation,'' Mr Schroeders said. Institutional dealer at IG Markets Chris Weston said any possible replacement for Mr Argus would have a lot to consider. Mr Weston said as BHP Billiton had a strong cash position an incoming chairman could look at new acquisitions. He said a new chairman would need to maintain a good relationship with Chinese customers and also focus on the proposed $US116 billion ($139 billion) tie-up of BHP Billiton and Rio Tinto's Pilbara iron ore assets. source:business.smh.com.au