[miningmx.com] – Glyn Lewis, the implacable CEO of Northam Platinum for eight years standing, is to step down from the company on June 30 after deciding to accelerate his retirement plans.
Lewis will be replaced by Paul Dunne, a former executive director of Impala Platinum (Implats), who will take up his duties on March 1. The overlap in service between the executives was in order to ensure a smooth transition, the company said.
Dunne takes over Northam Platinum at a time when the platinum sector is struggling to deal with the combined pressures of low platinum group metal prices, high cost inflation, and a volatile labour market in which the National Union of Mineworkers (NUM) is competing with the majority union, the Association of Mineworkers & Construction Union (AMCU), for members.
The NUM recently ended an 11-week strike at Northam’s Zondereinde mine which was thought to be fuelled by the union’s interest in out-flanking AMCU. The upshot, however, was that Northam burned through the proceeds of a R600m rights issue, forgoing some R750m in revenue.
A strike over wages called by AMCU at the mines of Anglo American Platinum, Impala Platinum and Lonmin, now entering its fifth week, could result in more job cuts and restructuring, the platinum producers said.
Northam said on February 7 that share earnings, excluding one-time items, would come in at 15 cents to 25 South African cents. This compares to a profit of 36.3 cents a share a year earlier. A 9.5% wage increase with the NUM was agreed.
The appointment of Dunne was after “… a comprehensive process followed by the board to timeously find a suitable replacement for Mr Lewis,” Northam said.
The twist to the tale, however, is that Dunne resigned from Implats after failing to see eye-to-eye with its CEO, Terence Goodlace. At the time, in November 2013, it was speculated that several executives were unhappy at Implats, although Goodlace told Miningmx there had been no management rebellion.
“The board has full confidence in Mr Dunne’s ability to take over from Mr Lewis and is pleased to have found a highly qualified and experienced replacement for Mr Lewis,” Northam said in its announcement.
Lewis joined Northam in 2001 when he was appointed manager of its Zondereinde division. He was appointed CEO in 2005, but his primary mandate was to bring the firm’s Booysendal project on-line – a job achieved on budget on June 30 last year.
