News: RIO UPDATE 1-Australia's Fortescue Metals appoints Elizabeth Gaines as CEO

(Adds management appointments, chairman's comments, share performance)

Nov 30 (Reuters) - Fortescue Metals Group Ltd (FMG) said on Thursday that it has appointed the company's chief financial officer, Elizabeth Gaines, as its next chief executive.

Gaines, who joined Fortescue's board in 2013 and its executive team early this year, will replace long-time CEO Nev Power, who announced earlier this year that he would step down in February.

The world's no. 4 iron ore miner said Ian Wells, currently Fortescue's group manager, corporate finance, will step into Gaines' existing role.

Power, who spent more than six years at the helm, oversaw a dramatic fall in the company's cost base, enabling it to compete with larger competitors like Brazil's Vale , BHP Billiton (BHP) and Rio Tinto (RIO).

Chairman Andrew Forrest said a new executive team would help effect "a change in marketing focus directly related to flexible operations, and new markets will also lead to greater penetration in global iron ore markets."

Fortescue was also targetting a move to mine higher grades of iron ore, he said. Fortescue at present sells its iron ore at a significant discount to bigger rivals.

The company also named Julie Shuttleworth as its deputy chief executive and Greg Lilleyman as its chief operating officer.

Fortescue's shares were trading down 1.4 percent at 0227 GMT. In the year to Wednesday's close, they have fallen 21.6 percent.