ORION Minerals said on Thursday its founding CEO Errol Smart is to resign with near immediate effect “following the recent achievement of key milestones”.
He will leave the company on April 3 (Friday) after 12 years in which he has taken Orion into two copper projects in South Africa’s Northern Cape.
Smart’s departure is a surprise. No specific reason as for his resignation – which comes as sudden – has been given by the company.
Smart will be succeeded as MD and CEO by Tony Lennox, a non-executive director of Orion with a background in development of large-scale mining projects. He was previously MD of Palabora Copper when it was jointly owned by Rio Tinto and Anglo American.
“Tony will work closely with the board and the executive team to maintain Orion’s existing strategic momentum and oversee its imminent transition from project developer to operating mining company,” said Orion in a statement to the JSE.
Lennox said he had “substantial insights” into Orion’s projects having participated in the definitive feasibility studies for the Prieska Copper Zinc Project (PCZM) and Flat Mines (Okiep Copper Company) which were published last week.
Smart’s departure is a surprise given the recent progress with Orion’s projects. On March 28, Orion unveiled a definitive feasibility study for construction of PCZM producing 22,000 tons of copper and 65,000 tons of zinc a year at a capital cost of R7.59bn (A$607m).
PCZM would produce its first metal 13 months after the start of construction. Funding for the project, which will consist of debt, equity and offtake arrangements would begin imminently, the company said in the feasibility study. PCZM would kick off with a R550m starter project focusing on the upper part of the orebody.
Flat Mines is a proposed R1,29bn (A$103m) project scoped to produce average annual production of 6,500 tons of copper, reaching peak production of 9,500 of copper a year, with a mine life of 12 years.
“As a continuing shareholder I am certain that Orion is well set to unlock strong returns for all investors and stakeholders,” said Smart in Orion’s announcement.
