Anglo American announces South Africa management shake up
Anglo American has announced the appointment of Themba Mkhwanazi as CEO of Kumba Iron Ore limited (Kumba) following Norman Mbazima’s decision to step down after four years to focus on his role as Deputy Chairman of Anglo American South Africa.
Norman Mbazima will remain a member of the Group Management Committee and will have oversight of the processes to restructure and divest Anglo American’s non-core assets in South Africa, including its interests in the Kumba and thermal coal businesses.
July Ndlovu, Executive Head of Processing Operations at Anglo American Platinum since 2007 is appointed CEO of Anglo American’s Coal business in South Africa, to replace Themba Mkhwanazi. The Kumba Board’s appointment of Themba Mkhwanazi as CEO and Anglo American’s appointment of July Ndlovu as CEO of Coal South Africa will take effect on 1 September 2016. Both roles will report internally to Seamus French, CEO of Anglo American’s Bulk Commodity business.
Mark Cutifani, Chief Executive of Anglo American, said: “We congratulate Themba Mkhwanazi and July Ndlovu on their new roles as CEO of Kumba and our South African coal business respectively. I thank Norman Mbazima for his tireless work to reshape Kumba’s cost structures over the last four years to create what is a much more resilient business to weather the lower iron ore price environment. Norman will now concentrate on how we deliver value through the restructuring and divestment of our non-core businesses in South Africa as we continue to explore all appropriate options, as we have been doing across our global portfolio of non-core assets.”
Norman Mbazima said: “I have been privileged to lead Kumba through what has been a tough period for iron ore and for South African mining. Together with the Kumba team, we have transformed the business to put it on a firmer footing, making the difficult but necessary decisions to ensure the business’ profitability and long term health. I wish Themba Mkhwanazi well as he takes up the role as CEO and look forward to continuing to work closely with him and with July Ndlovu as I consider the optimal divestment path for Anglo American’s non-core interests in South Africa.”
Themba Mkhwanazi commented: “I am excited by the prospect of leading one of South Africa’s great success stories. Kumba has a rich mineral endowment and a skilled and dedicated workforce enabling us to produce high quality lump and fine iron ore products to our steel customers around the world. My energies will be focused on maintaining Kumba’s strong track records in safe production, mutually beneficial relationships and further increasing productivity to ensure the sustainability of the business for the benefit of all our stakeholders.”
On his appointment as CEO of Anglo American’s South African Coal business, July Ndlovu added: “I am delighted to lead Anglo American’s South African coal business. I have always admired the business’ resolute commitment to the safety and wellbeing of its employees and sustaining this will be my priority. My immediate focus will be on operational performance that meets our customers’ needs, supporting the value of our domestic and export mines and working together with colleagues and our key stakeholders to advance the divestments.”
Seamus French, CEO of Anglo American’s Bulk Commodity business, concluded: “Both Themba Mkhwanazi and July Ndlovu have proven abilities in leading safe and productive complex operations at a time when cost competitiveness is critical to the sustainability of any mining business. Our priority for both businesses is to lead them safely through their divestment from Anglo American. We expect the price environment for both thermal coal and iron ore to remain under pressure and our operational focus is firmly on building upon the excellent work of the teams to date to further improve performance and value.”
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Newmont acquires Canada’s GT Gold in $325mn deal
Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.
“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.
“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”
Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.
Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.
With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.