TIDMKAZ
RNS Number : 5548D
KAZ Minerals PLC
27 April 2017
KAZ MINERALS
PLC
6(TH) FLOOR
CARDINAL PLACE
100 VICTORIA
STREET
LONDON SW1E 5JL
Tel: +44 (0)
20 7901 7800
==================
27 April 2017
BOARD CHANGES
KAZ Minerals PLC ("KAZ Minerals", "the Group" or "the Company")
announces the following changes to the Board with effect from 1
January 2018:
l Simon Heale, the non-executive Chairman of the Company, will
retire from the Board having served eleven years with the Company,
including five as Chairman
l Oleg Novachuk, Chief Executive Officer, will become Chair
l Andrew Southam, Chief Financial Officer, will be appointed
Chief Executive Officer
l Michael Lynch-Bell, Senior Independent Director will be
additionally appointed Deputy Chair with responsibility for Board
governance matters and to represent the interests of independent
shareholders constituting the Group's majority free float
l A process is under way to identify and appoint a new
independent non-executive Director and a new Chief Financial
Officer
Simon Heale, Chairman, said: "I have decided to stand down from
the Board of KAZ Minerals PLC at the end of 2017, having served
eleven years as a Director and five years as Chairman. Following
the restructuring in 2014 which positioned KAZ Minerals as a
globally competitive, low cost producer and with the completion of
the two major growth projects in 2016, KAZ Minerals is well
positioned to benefit from the improving outlook for copper. It is
the right time for a new Chair to take the Company forward."
Oleg Novachuk has been the Group's Chief Executive for the past
eleven years and prior to that, as Finance Director, he led the
Listing of the Group on the London Stock Exchange in 2005. As Chief
Executive Officer, he has delivered the two major growth projects
and put in place a strong operational management team. The Board
views Oleg's operational knowledge, project development expertise
and senior relationships with industrial, financial and political
leaders in both China and Kazakhstan as invaluable to the Group and
its future prospects. Given the history of the Group, its status as
a leading Kazakhstan-based developer and operator of copper mining
assets, together with the diverse challenges involved with
operating in the region, Oleg is uniquely qualified to take
responsibility, as Chair, for the strategic leadership of KAZ
Minerals going forward. The Chair role will be full-time and will
include responsibility for strategy, government relations and
business development. Oleg retains a significant shareholding in
the Group and his interests therefore remain closely aligned with
those of other shareholders.
Oleg Novachuk said: "I would like to thank Simon for his
contribution to the Group over the last eleven years which has
included a period of significant change, including the completion
of our major growth projects last year. His advice and leadership
will be greatly missed. I am pleased to be taking on the role of
Chair of the Group upon Simon's departure which will enable me to
increase my focus on strategic development and build on our key
relationships in the region. As Chair, and as a significant
shareholder in KAZ Minerals, I will continue to seek to maximise
the value of the Group's assets over the long term."
Andrew Southam, currently Chief Financial Officer, will be
appointed to the role of Deputy Chief Executive Officer and Chief
Financial Officer with effect from 1 July 2017 and will succeed
Oleg Novachuk as Chief Executive Officer with effect from 1 January
2018. Andrew Southam is ideally placed to take on the role of Chief
Executive Officer and is Oleg's clear successor with a deep
understanding of the business of the Group, its culture and
stakeholders in the UK and Kazakhstan. Andrew was, together with
Oleg, one of the architects of the October 2014 restructuring which
created KAZ Minerals. As Chief Executive Officer, Andrew will be
responsible to the Board for the executive management of the Group
including leadership of the Executive Committee and implementation
of the Group's strategy. A process is underway to appoint a new
Chief Financial Officer.
Andrew Southam said: "I am delighted to have the opportunity to
steer the Group through the next phase in its development as we
ramp up production from our new assets. Oleg and I have worked
together closely for many years and we have a shared vision for the
Group. I am pleased that KAZ Minerals will retain Oleg's experience
and leadership as Chair and I look forward to continuing to work
together with him in delivering value for our shareholders."
The Board is mindful of the UK Corporate Governance Code's
provisions regarding a Chief Executive Officer going on to become
Chair of the same company. However, having consulted with major
shareholders, the Board believes that Oleg's appointment as Chair
will allow the Group to continue to benefit from his unique skills,
experience and relationships in the region in which the Group
operates. In recognition of the need to maintain the Group's
existing high standards of corporate governance the Board will
appoint Michael Lynch-Bell, the current senior independent
Director, as Deputy Chair with effect from 1 January 2018. The
division of responsibilities between the Chair, Deputy Chair and
Chief Executive Officer have been clearly defined and approved by
the Board. The Chair will lead the Board other than in matters of
governance, which will be led by the Deputy Chair. In addition, the
Chair will be responsible for the development of strategy,
government relations and business development. The Chief Executive
Officer will be responsible for the day to day executive management
of the Group.
The Deputy Chair role will expand the authority and
responsibilities of the senior independent Director. Michael
Lynch-Bell will lead on governance issues, including the annual
review of Board effectiveness, the leadership of the Nomination
Committee and acting as an intermediary between non-executive
Directors and the Chair. The Deputy Chair will also provide a point
of contact between the Company and independent shareholders who may
wish to raise issues with the Board other than through the Chair.
Michael has been a Director of KAZ Minerals PLC and chair of the
Audit Committee since 2013 and was formerly an audit partner at
Ernst and Young, where he worked for over 38 years having developed
and later led its global mining practice.
To further strengthen the representation of shareholders, the
Group will seek to appoint a new independent non-executive Director
before the Board changes take effect on 1 January 2018 and at all
times a majority of the Board will comprise non-executive Directors
determined by the Board to be independent.
Michael Lynch-Bell, the Senior Independent Director and Deputy
Chair designate, said: "I am pleased to be taking on the additional
role of Deputy Chair and I am confident that the proposed new
governance arrangements are in the best interests of shareholders.
The Board of KAZ Minerals remains committed to upholding the
highest standards of corporate governance and has consulted with
shareholders as part of this process."
For further information please contact:
KAZ Minerals
PLC
==================== ========================== =================
Chris Bucknall Investor Relations, Tel: +44 20 7901
London 7882
Investor Relations, Tel: +44 20 7901
Anna Mallere London 7814
Maksut Zhapabayev Corporate Communications, Tel: +7 727 244
Almaty 03 53
==================== ========================== =================
Instinctif Partners
==================== ========================== =================
Tel: +44 20 7457
David Simonson 2020
==================== ========================== =================
REGISTERED OFFICE
6th Floor, Cardinal Place, 100 Victoria Street, London SW1E 5JL,
United Kingdom.
NOTES TO EDITORS
KAZ Minerals PLC is a high growth copper company focused on
large scale, low cost, open pit mining in Kazakhstan. It operates
three mines and three concentrators in the East Region of
Kazakhstan, the Bozymchak copper-gold mine in Kyrgyzstan, the
Bozshakol open pit copper mine in the Pavlodar region of Kazakhstan
and the Aktogay open pit copper mine in the East Region of
Kazakhstan. In 2016, total copper cathode equivalent output was 140
kt with by-products of 75 kt of zinc in concentrate, 120 koz of
gold bar equivalent and 3,103 koz of silver bar equivalent.
The Group's major growth projects at Bozshakol and Aktogay are
expected to deliver one of the highest growth rates in the industry
and transform KAZ Minerals into a company dominated by world class,
open pit copper mines.
Bozshakol is a first quartile asset on the global cost curve and
will have an annual ore processing capacity of 30 million tonnes
when fully ramped up, with a mine life of 40 years at a copper
grade of 0.36%. The mine and processing facilities will produce 100
kt of copper cathode equivalent and 120 koz of gold in concentrate
per year over the first 10 years of operations.
Aktogay is a large scale, open pit mine similar to Bozshakol,
with a mine life of more than 50 years and average copper grades of
0.37% (oxide) and 0.33% (sulphide). Aktogay commenced production of
copper cathode from oxide ore in December 2015 and copper in
concentrate production from sulphide ore commenced in February
2017. The sulphide concentrator will have an annual ore processing
capacity of 25 million tonnes when fully ramped up. Aktogay is
competitively positioned on the global cost curve and will produce
an average of 90 kt of copper cathode equivalent from sulphide ore
and 15 kt of copper cathode from oxide ore per year over the first
10 years of operations.
KAZ Minerals is listed on the London Stock Exchange, the
Kazakhstan Stock Exchange and the Hong Kong Stock Exchange and
employs around 13,000 people, principally in Kazakhstan.
This announcement contains inside information.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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