South32 chair bolsters BHP link

South32’s appointment of Karen Wood as its new chairman has resulted in the company reinforcing its historical ties to BHP.

Karen Wood is the new South32 chairman.

South32’s appointment of Karen Wood as its new chairman has resulted in the company reinforcing, rather than loosening, its historical ties to BHP.

The Perth-based miner, which was spun out of BHP in 2015, yesterday announced it had appointed Ms Wood to replace its inaugural chairman, David Crawford, from April 12.

While South32 has been working to carve out its own identity and distance itself from its parent company, Ms Wood herself enjoyed a long and decorated career with BHP.

She was a member of BHP’s executive team from 2001 to 2014, serving variously as company secretary, chief people officer, and the head of people and public affairs. She has been on the board of South32 since November 2017.

Mr Crawford, who flagged his intention to step down as South32 chairman last year, said in a statement that he was ­delighted Ms Wood had been elected as his successor. “Her experience in strategy and governance, and her legal and people skills, position her well to lead the board,” Mr Crawford said.

Ms Wood paid tribute to Mr Crawford, saying he would leave the company “with a clear purpose, well-embedded values, a robust financial position and excellent leadership capability”.

Ms Wood and South32 chief executive Graham Kerr worked together previously at BHP, where Mr Kerr was chief financial officer from 2011 to 2014.

With the chairmanship of South32 now determined, attention will turn to the potential ­future succession of Mr Kerr.

While Mr Kerr has shown no signs of going anywhere and is still relatively early in his tenure, the company’s recent leadership changes pointed towards some succession planning. Brendan Harris was moved from CFO to chief marketing officer as part of changes aimed at broadening the skills and experience of the company’s leadership team.

Ms Wood’s appointment makes her the 13th female chairman of an ASX 200-listed company, and just the second female chairman of a top-tier Australian-listed mining company, alongside OZ Minerals chairman Rebecca McGrath.

South32, which operates mines in Australia, Africa and South America, reports its interim results on Thursday. Analysts expect earnings before interest, taxation, depreciation and amortisation of $US1.3 billion ($1.8bn) for the half.

South32 shares closed 1.6 per cent lower at $3.64 on a weak day for resource stocks.