Rio Says Director Leng Resigns, Won’t Become Chairman

Rio Tinto Group, the world’s third- largest mining company, said director Jim Leng quit and will no longer become chairman as announced less than a month ago.
Current Chairman Paul Skinner agreed to remain in the role until mid-2009, London-based Rio said today in a statement to the Australian stock exchange. No reason for Leng’s departure was given.
Rio Tinto, struggling under $38.9 billion of debt after acquiring Alcan Inc. in 2007, is seeking to complete $10 billion in asset sales this year to repay loans. Leng, 61, deputy chairman of Tata Steel Ltd. and chairman of the Indian company’s European unit, was announced as Skinner’s successor on Jan. 14.
The process to appoint a new chairman has started and is expected to be completed by mid-2009, Rio said.
Rio, traded in Australia and the U.K., gained 6.5 percent to 19.57 pounds in London on Feb. 6. It dropped 1.4 percent the same day in Sydney.