Xstrata CEO to step down, others follow lead

Mick Davis, the Chief Executive Officer of mining giant Xstrata, has announced that he will not take up the six-month position in the same role in the soon-to-be merged Glencore and Xstrata.

When the merger takes place - currently expected on May 2nd - Davis will step down from Xstrata, but will stay on as a consultant until the end of June to support the integration of the two companies.

The company also announced that a number of other members of the Xstrata executive committee have indicated their intention to step down from their roles at the time of the merger.

Copper Chief Executive Charlie Sartain, Nickel Chief Executive Ian Pearce, and Interim Chief Executive of Xstrata Alloys Loutjie Smit, will all leave the company.

Executive General Manager of Strategy and Corporate Affairs Thras Moraitis, and Chief Legal Counsel Benny Levene will also step down, but, along with outgoing Chief Financial Officer Trevor Reid, have agreed to act as consultants to the combined group for up to six months following the merger in order to support the integration of their respective functions.

Davis said: "I look back on the past eleven years at Xstrata with enormous satisfaction [...] My executive team and I are pleased to hand over to the new Glencore Xstrata a company with a strong legacy for value creation and growth, a high quality portfolio of operations and growth options, supported by a very healthy balance sheet."

Glencore's share price was up 3.61% at 332.70p by 13:10, while Xstrata shares climbed 4.52% to 1,010p.