Anglo American snares Fortescue CFO Stephen Pearce

Fortescue Metals Group chief financial officer Stephen Pearce will leave at the end of the year to join Anglo American.

Fortescue chief financial officer Stephen Pearce. Picture: i-Images

Fortescue Metals’ highly regarded chief financial officer Stephen Pearce will leave the iron ore miner at the end of 2016 after seven years in the role to take on the executive finance director role at big London-based miner Anglo American.

The surprise move, the announcement of which comes just three months after Mr Pearce was promoted to executive director at Fortescue, will remove a substantial amount of financial skill and knowledge from Andrew Forrest’s Fortescue, but comes after the company’s balance sheet has been significantly strengthened over the past year.

At the same time, Fortescue has secured the services of former Rio Tinto Pilbara and more recently technology and innovation boss Greg Lilleyman as director of operations.

Mr Lilleyman left his Brisbane-based job as Rio’s head of technology and innovation in May after the promotion of current chief Jean Sebastien Jacques.

Fortescue chief Nev Power said Mr Pearce’s intention to leave had been unexpected but that there was no ill will.

“He goes with absolutely good grace from us, he’s been a great contributor and we fully understand this is a natural next step for him,” Mr Power said.

“The finance team we have in place is full of exceptionally talented people and Steve was a key part of that but it is far from about the individual, it is a whole-of-Fortescue approach.”

Mr Forrest, Fortescue’s chairman, major shareholder and founder, also wished Mr Pearce well.

“Given the great progress on cost and debt reduction, and Stephen advising his keenness to pursue an international operations and finance role, this is an appropriate time for Stephen to move out of Fortescue to pursue those objectives,” the chairman said.

In the past 15 months, Fortescue has paid back $US3.7 billion of debt on a combination of operational cost-cutting success and innovative financial moves, including buying back debt at a discount.

Anglo’s Wollongong-born chief Mark Cutifani yesterday said Mr Pearce’s strong relationships with debt and equity capital markets had proven “immensely valuable” at Fortescue.

A search has begun for a replacement for Mr Pearce.

Mr Power said he expected Mr Lilleyman’s experience in the Pilbara and in technology to drive further improvements at Fortescue.

“Greg has very deep experience in iron ore mining and a real passion and deep knowledge of innovation and technology, which we are very excited about,” he said.

“It’s an opportunity for Greg to bring his talents to bear to help take us to a new level ... in safety, productivity and efficiency and new technology and innovation.”

Mr Lilleyman will start at Fortescue on January 1, a day after Mr Pearce is scheduled to leave. Current director of operations Nick Cernotta is in talks with Fortescue about alternative roles once Mr Lilleyman joins.

Fortescue shares finished down 20c, or 3.9 per cent, at $4.96 yesterday.