LONDON: South African miner Lonmin opened the search for a new chief executive to revive its fortunes after a torrid 2012 as Ian Farmer, who is being treated for a serious illness, officially stepped aside yesterday.
The absence of a permanent CEO has been a major concern cited by investors seeking a clear strategy from the company after months of financial pressure, weak platinum prices and a wave of deadly strikes at South African mines.
Chief Financial Officer Simon Scott had ruled himself out of the job on a permanent basis, Lonmin said, but he would continue to fill the role until a replacement was found.
Farmer was admitted to hospital in August, coinciding with a wave of unrest at the group’s Marikana mine that left 46 people dead and paralysed operations.
The strikes increased pressure on a company that was already being squeezed by high costs and weak platinum prices.
It was forced to turn to investors last month to raise $817m to avoid breaching lending terms. Its biggest shareholder, miner Xstrata, which holds a 25 percent stake, supported the rights issue but it said it wanted management changes.
Reuters
