Rio Tinto Chairman-Designate Resigns Over ‘Financial Issues’

Jim Leng, Rio Tinto’s chairman-designate and a non-executive Director, has resigned from the Boards with immediate effect and will therefore not take up the post of Chairman, the miner announced Tuesday. Rio did not provide a reason for the resignation, however Leng alluded to a “financial issue.”

“As the company previously stated, it has a financial issue to resolve in terms of its debt and repayment and there has been a difference of opinion over which option the company should pursue,” Leng, 63, said in a statement.

“I am hopeful that my resignation will enable the board to reach a consensual decision,” he said over “a difference of opinion over which option the company should pursue.”

Following the surprise resignation, Rio Tinto’s current Chairman Paul Skinner has agreed to remain as chairman until mid 2009. Rio expects to appoint a successor by that time. Skinner was to leave the post in April.