Ralph Havenstein, former CEO, Anglo Platinum
Send this article to a friend
Print this page

» Safety issues shrink Anglo Pt's 2007 output
» Anglo Pt considers mine shutdowns
» Anglo Platinum defends its safety efforts
» Anglo Pt cuts 2007 platinum output by 15,000 oz

» JSE:ANGLO PLATINUM LIMITED:
100800c 4%

Havenstein quits amid safety review
Allan Seccombe & David McKay
Posted: Mon, 30 Jul 2007

[miningmx.com] -- RALPH HAVENSTEIN, CEO of Anglo Platinum, said on Monday he was resigning to make way for someone else to implement a much-needed and much tougher safety strategy at the world's largest platinum producer.

Havenstein's resignation appears to be directly linked to controlling shareholder Anglo American's interest in radically improving the company's safety record, a position Havenstein articulated himself.

"I believe Anglo Platinum needs new leadership and a new insight to achieve these safety goals," Havenstein told analysts at an interim results presentation. His resignation is effective from August 31 and his position will be temporarily filled by Norman Mbazima, chief financial officer, and Duncan Wanblad, director for projects and engineering.
Leadership change brings new pressures
Havenstein had been with Anglo Platinum for four years. His departure comes shortly after Cynthia Carroll joined Anglo American as CEO from Alcan, a North American aluminium and base metals company.

"The first effect has been felt in safety. That is a very strong position taken by the new [Anglo American] CEO," he said.

Asked later by Miningmx if Carroll had read Anglo Platinum the riot act over its safety record after 12 workers were killed this year alone at its Rustenburg section, Havenstein said: "Leadership change brings new pressures. The biggest pressure is in dealing with safety and I fully agree with that. The direction taken is the right one. I've decided to take a rest and give someone else a chance."

Click Here to subscribe to our daily newsletter
"It's been a tough time and it's taken a lot of energy. There's a new safety paradigm and vision out there. I believe to realise that shift Anglo Platinum needs new leadership. I've been with the company a while and it needs a paradigm shift and it needs someone new to say it's possible to make more than a 10% improvement a year and make a 100% improvement. That's what it's all about," he said.

Anglo Platinum has also had turbulent relations with the government, having been publicly singled out on a number of occassions by mining ministers accusing the company of an unwillingness to adopt the mandatory black empowerment requirements laid out in mining laws enacted in May 2004.

It has a very poor public image on its dealings with communities affected by its mining projects on the Eastern Limb of the Bushveld Complex and has been accused of using bully boy tactics to get its way.

These are critical issues when it comes to securing new-order mining and prospecting rights in the world's richest platinum province. Anglo Platinum is working on two empowerment transactions and an employee share ownership scheme by the end of this year or early next year that it thinks will be enough to secure those rights.

Anglo Platinum earlier today lowered its refined platinum output expectation for 2007 by between seven and eight percent to 2.65 million ounces from its previous forecast for 2.8 million - 2.9 million ounces as it implements safer working environments at its operations and grapples with a troubled workforce at its operations.

Anglo Platinum suspended operations for a week at its Rustenburg shaft. Francis Petersen, head of strategy at Anglo Platinum, told Miningmx as early as July 10 that this strategy would be broadened.

Havenstein said the safety programme, which could entail temporary closures of some operations, would come at an estimated cost of 103,000 oz of refined platinum this year.

One Johannesburg analyst expressed his dismay with Havenstein's resignation: "I liked him. He was a solid hand on the tiller."

Anglo Platinum's Robin Mills, a production stalwart, has postponed his retirement for a month, but it's unlikely to make a significant impact at what could become a management crisis at the company. "Robin's already in Ballito," said one analyst.