Talbot took a leave of absence from the company in November last year, following controversy surrounding his dealings with former industrial relations minister Gordon Nuttall – who received a $A300,000 loan from Talbot in 2001.

While the corruption case is ongoing, Macarthur Coal chairman Keith De Lacy said today’s announcement would “put to rest speculation about his future role in the company”.

Talbot will remain as a non-executive director and “continue to play an important role in the evolution of the company”, De Lacy said.

“He built Macarthur Coal into the successful business it is today and, although he will not be resuming executive duties, the board is delighted that the company will still have access to his experience and expertise through his role as a non-executive director,” De Lacy said on Talbot’s 20 years of contribution to the company.

After eight months as chief executive, Hollows was today appointed to the Macarthur board as managing director whilst retaining her chief executive position.

Hollows will bring 15 years of experience in the coal mining and resources industry to the board.

Macarthur was trading up 3.96% this afternoon at $A6.83.