Former Newcrest chief to take reins of Orica early

ORICA chief executive Graeme Liebelt is to bring forward his retirement date to accommodate the arrival of former Newcrest boss Ian Smith as the explosives and chemical company's new chief executive.

By InvestSMART · 25 Oct 2011

By InvestSMART ·
25 Oct 2011

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ORICA chief executive Graeme Liebelt is to bring forward his retirement date to accommodate the arrival of former Newcrest boss Ian Smith as the explosives and chemical company's new chief executive.

Mr Liebelt's contract was due to expire at the end of September next year but it will now finish at the end of March after a one-month changeover with Mr Smith, who becomes the new chief executive on February 27.

The highly rated Mr Smith was Newcrest chief executive for five years until June. With the help of bumper gold prices, he presided over a six-fold increase in the gold company's market capitalisation to $30 billion.

During his time at Newcrest, Mr Smith orchestrated the successful $4.5 billion takeover of Lihir Gold and overhauled Newcrest's operating procedures and finances, most notably ridding the company of its problematic hedge book.

His appointment to the Melbourne-based Orica follows speculation that Rio Tinto was keen to have him join its board as part of its effort to increase Australian representation on its London-dominated board.

But Mr Smith is believed to have tired of the extensive travel required to be Newcrest's chief executive and what would have been needed to attend Rio's board meetings.

A critic of the federal government's mining tax and former chairman of the mining industry lobby group, Minerals Council of Australia, Mr Smith faces several challenges at Orica.

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Frequently Asked Questions about this Article…

What is the Orica CEO change and who is taking over?

Orica is appointing former Newcrest boss Ian Smith as its new chief executive. Graeme Liebelt is bringing forward his retirement to allow a one-month changeover before Mr Smith becomes CEO.

When does Ian Smith officially start as Orica CEO and what is the transition timeline?

Ian Smith becomes Orica's new chief executive on February 27. The company is scheduling a one-month changeover, with Graeme Liebelt now finishing at the end of March instead of his original contract end date.

Why did Graeme Liebelt bring forward his retirement at Orica?

Graeme Liebelt brought forward his retirement to accommodate Ian Smith’s arrival. Liebelt’s contract was originally due to expire at the end of September next year but will now finish at the end of March after the one-month handover.

What is Ian Smith’s track record from his time as Newcrest CEO?

Ian Smith was Newcrest chief executive for five years until June. During his tenure he oversaw a six‑fold increase in Newcrest’s market capitalisation to about $30 billion, led the $4.5 billion takeover of Lihir Gold, and overhauled the company’s operating procedures and finances, including removing a problematic hedge book.

How might Ian Smith’s Newcrest experience be relevant to Orica investors?

Investors often watch leadership changes closely. Ian Smith’s track record — major deal experience, financial and operating overhauls, and steering market capitalisation growth at Newcrest — could be seen as relevant credentials for leading Orica, though the article does not predict market outcomes.

Was Ian Smith linked to Rio Tinto before joining Orica?

Yes. The article says there was speculation Rio Tinto wanted Ian Smith to join its board to boost Australian representation on its London-dominated board. However, he is believed to have been put off by the extensive travel that his previous role and potential board commitments would require.

Does Ian Smith have any public industry or policy positions investors should know about?

The article notes Ian Smith has been a critic of the federal government’s mining tax and is a former chairman of the Minerals Council of Australia, which signals his past involvement in industry policy discussions.

What challenges will Ian Smith face as Orica’s new CEO?

The article states that Mr Smith faces several challenges at Orica but does not list specifics. Investors should watch company updates and management commentary after he takes over for details on his priorities and the issues he plans to address.