Mining firms grow but sector still scarred by previous excess

London

GLOBAL mining heads may have thought that they had seen it all in the last five years, navigating a recovery after a commodities boom turned to bust. As the cycle turns, it brings a new challenge: tackling growth in an industry still scarred by its excesses.

It comes just in time for Ken MacKenzie, who took over as chairman of BHP, the world's biggest miner, on Sept 1. Like peers Rio Tinto and Glencore, BHP has just racked up its best profit and cash flow in years on rising global demand for staples such as iron ore and coal.

But this time, amid the cash piles, investors are reminding miners of messy mega-deals that cost previous executives their jobs. With activists such as Elliott Manag…