BHP Billiton named Marius Kloppers as its new chief executive to replace Chip Goodyear who announced his retirement in February.

The widely-expected appointment of Mr Kloppers, a South African-born former management consultant, comes at a time when global mining companies are looking at alliances to bolster their position during the surge in demand for minerals, led by China.

BHP Billiton has been linked in recent weeks with possible moves on Rio Tinto and Canadian aluminium group Alcan, but has made no official approaches.

“With uncertainty over the new CEO resolved, we place a higher probability that the company could be a participant in the continued wave of M&A sweeping through the sector,” Citigroup said in a note to clients.

Mr Kloppers, a former management consultant with McKinsey & Co, joined Billiton in 1993 before the merger with BHP and was a core member of the team that created the group’s aluminium business.

Married with three children, he is based in Melbourne, where dual-listed BHP Billiton has its Australian headquarters.

BHP said in a statement that Mr Kloppers, currently group president non-ferrous materials, its most profitable division, and executive director, would take charge from October 1, 2007.

“We are in a time of considerable change in our industry with the emergence of new markets and source of supply,” Don Argus, BHP Billiton’s chairman said in the statement.

Mr Goodyear, 49, surprised the market by announcing his retirement back in February.

Brought in to staunch the bleeding at the then debt-laden BHP, he was the second successive American to head “The Big Australian” and will leave the company after nine years - five as chief executive.

Although Mr Kloppers was widely tipped for the top post, he is also thought to have an internal rival in the form of Chris Lynch, BHP Billiton's carbon steel materials chief.

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