IGO sinks as chair defends incoming CEO pick sacked by Rio

The news: The chair of battery minerals producer IGO has defended his company's selection process after revelations incoming CEO Ivan Vella was sacked from Rio Tinto for allegedly breaching confidentiality. At IGO's AGM, chair Michael Nossal told shareholders the board was working with Vella to "more deeply understand" why he was terminated with immediate effect on Wednesday.

The numbers: IGO shares fell 4.3% by Thursday's close, as the company reaffirmed expectations Vella will head the miner from early December as planned. IGO also noted missing the lower end of production guidance at one of its nickel mines due to a fire at an onsite power plant.

The context: Vella stepped down as Rio Tinto's aluminium business chief executive in June but was set to continue during the transition before his move to IGO. Instead, he was sacked on Wednesday, after an external investigation found he had failed in Rio's "guidance on acceptable management of confidential information," the Australian Financial Review reports.

What they said: "In light of this information, the Board is engaging with Ivan to more deeply understand the circumstances in question and will provide an update to the market in due course, however it is our expectation that Ivan will start with IGO in early December as planned," Nossal told shareholders.