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Village announces management restructure, to shut loss-making gold ops

14th May 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Village Main has embarked on a restructure of its management, appointing MDs for its platinum, gold and antimony assets.

Effective May 14, Marius Saaiman would relinquish his current role of joint CEO to head up the company’s platinum assets. As MD of the platinum business, he would be responsible for pursuing opportunities in the sector and exploiting Village Main’s investment in the Lesego project.

Village Main nonexecutive director, chairperson of the audit committee and former Great Basin Gold CEO Ferdi Dippenaar was appointed to head up the firm’s gold assets.

Village’s gold assets included the Tau Lekoa and Blyvooruitzicht gold mines, as well as the Buffelsfontein gold mine.

However, the company announced late on Tuesday that it would shut its non-profitable operations at Buffelsfontein.

The group had started the required consultation processes with the employee representatives and other stakeholders.

This comes as Village warned of a declining gold price and higher electricity costs owing to winter tariffs weighing on the profitability of its operations during the June quarter.

The company also reported poor profitability and production performance of the March quarter.

Meanwhile, COO Dalu Ncube would shift to MD of Village Main’s antimony operations, focusing on maximising value from the current disposal process of the Cons Murch gold and antimony mine.

Independent nonexecutive director Gerard Kemp would take over as chair of the audit committee.

“The re-structuring at the executive level allows key individuals to focus on each of the assets that Village is currently exposed to,” the company said in a statement.

This was in efforts to transform the company into a diversified resources investment company.

CEO Bernard Swanepoel would also take up a board position at Continental Coal, in which Village has a small investment.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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