[miningmx.com] — IMPALA Platinum CEO, David Brown, said his decision
to resign was driven by a desire for “a change of scenery,” but that if asked he
would assist with the platinum firm’s efforts to conform to Zimbabwe’s indigenisation
legislation after his departure, scheduled for end-June.
Brown was speaking to Miningmx following an announcement earlier on Wednesday
that he was to step down as CEO on June 30. Impala Platinum said a successor has
been selected, but the details of the appointment have yet to be inked.
Shares in Impala Platinum fell 2.7% on the JSE. Shares in Anglo Platinum, Aquarius
Platinum and Lonmin were all in positive territory.
“I informed the board’s chairman several months ago that I was basically looking for a
change of scenery. I’ve probably been one of Impala’s longest serving executives,
having been on the board for 14 years,” said Brown.
Brown’s announcement to leave Impala Platinum comes at a sensitive time for the
company, which recently submitted fresh proposals to meet indigenisation legislation
in Zimbabwe; effectively black empowerment.
Impala has already agreed to a 10% equity deal through the formation of community
trusts, as well as a $10m CSI agreement. However, the Zimbabwean government is
seeking control of assets owned by foreign firms.
Impala was given an extension to table a new deal in November which Saviour
Kasukuwere, the Zimbabwean minister responsible for indigenisation, told Miningmx
had “heartened him”. But a final deal is still elusive.
It’s since thought that Zimbabwe’s ruling party, Zanu-PF, is pushing for elections to
take place in 2012 rather than 2013, and that it might wait for successful elections
before completing a deal with Impala. This could mean that Brown will leave the
company before establishing security over the significant mineral resources it owns,
through Zimplats, in Zimbabwe.
Brown acknowledged this was a possibility, but said arrangements in Zimbabwe still
remained “flexible”, adding: “You have to realise we’re negotiating with a government,
and it has its own timelines”.
Said Brown: “I have built up relationships in Zimbabwe. If the company would like me
for interaction on an ongoing basis then that’s a bridge we can cross when we get to
it,” he said.
He said the “focal point” of his energies for the next five-and-a-half months would be
safety controls on Impala’s mines, and the conclusion of an indigenisation agreement
in Zimbabwe.
“Fourteen years is a long time to be an executive director and the South African
mining industry is relentless. It’s been invigorating but I’m seeking a little bit of quiet
time,” he told Miningmx.
Brown, who has been CEO of Impala since 2006, was key in negotiating an
agreement that same year in which it released some 51 million ounces of platinum or
99 million ounces of 4E [platinum, palladium, rhodium and gold] to the Zimbabwean
government, the so-called Release of Ground deal.
At the time, Impala said in an announcement to the JSE that the release of those
mineral reserves was outside the group’s long-term expansion programme, which was
then of some 1 million platinum ounces over a 50-year life of mine.
In return, Zimplats was to be awarded an empowerment and cash credit of $153m
for release of the mineral bearing ground. It will be interesting to see if the
Zimbabwean government makes good on this contracted pledge.
The agreement also provided for all remaining claims retained for the long-term
expansion to be incorporated into the special mining lease regime that applied to
Zimplats’ current operations.
