[miningmx.com] — ANGLO American denied it, but a difference in
opinion over the extent of changes needed at its platinum subsidiary was the likely
reason for the departure of Anglo American Platinum (Amplats) CEO, Neville
Nicolau.
Anglo American on Thursday announced the resignation of Nicolau, “to pursue other
interests’, saying his position would be filled by Chris Griffith, the current CEO of
Kumba Iron Ore. Griffith was Amplats’ Head of Operations for joint ventures before
being appointed CEO of Kumba in 2008. His new appointment will take effect from
September 1, with Amplats CFO Bongani Nqwababa acting as interim CEO in the
meantime.
Nicolau’s departure comes a day after Amplats said it would post a 78% drop in
headline earnings when it reports interim financials this week, blaming lower sales
and prices. The company earlier this year announced a review of its operations, due
for completion before the end of the year. The expectation is that Amplats would
announce significant production cutbacks as the whole industry suffers from low
prices and rising costs.
In a short interview with Miningmx, Anglo American CEO Cynthia Carroll
denied the notion that Nicolau and the company didn’t see eye-to-eye on the scope
of what was needed to steer Amplats through the current market storms and
operational review.
“No, it is not,’ she said when Miningmx posed the question. “We haven’t
finished the review yet . and no conclusions will be made until the end of the year.
A lot of work still needs to be done.’
She stressed the platinum business would remain a key differentiator for Anglo, but
that the market would continue to be “in a bad way and not improve anytime soon’.
Miningmx reported earlier in July that Carroll and Nicolau were at
loggerheads as to whether the group’s Rustenburg operations ought to be
restructured at all.
“Unsurprisingly, Carroll is likely to win the day, which is why the market wags are
saying Nicolau will be the latest Anglo executive to come a cropper,’
Miningmx reported. At the time, Anglo said they would not comment on
market speculation.
In an interview with Miningmx in June, Nicolau said Amplats had already
done the hard work at Rustenburg three years ago when it removed thousands of
workers from its payroll through a number of shaft closures, three of which were in
the Rustenburg area.
“We have done that work,’ he said. “Sooner or later we will see the benefits. We’re
not making as much profit as we would like to, but our business is actually in very
good condition.’
A Johannesburg-based analyst at an international research house, who asked to
remain anonymous due to company policy, said it was fairly common knowledge that
Carroll and Nicolau disagreed over what had to be done at Amplats and the extent of
changes necessary.
“A lot of the difficult work still lies ahead,’ he said.
MUSICAL CHAIRS
Nicolau’s departure brought about several executive management changes across
Anglo American’s South African businesses.
Griffith’s successor at Kumba Iron Ore is the current CEO of Anglo Thermal Coal,
Norman Mbazima, whose post would be taken up by the head of Anglo American’s
corporate operations in South Africa, Godfrey Gomwe. Khanyisile Kweyama would
become the new Executive Director of Anglo American SA.
According to a press statement, Kweyama has held a number of executive roles at
Barloworld, Altech and BMW South Africa and was appointed by the Minister of
Labour to serve as a business representative on the Commission for Employment
Equity.
The analyst said Mbazima would find himself at a less complex business at Kumba
than what the case was at Thermal Coal. “I rate him very highly,’ the analyst said.
“The move to Kumba is still a promotion though given it’s a listed entity.’
