Magnetite Mines Ltd (ASX:MGT) has completed a comprehensive review of its governance structure and cost base, with the aim of streamlining operations as it progresses towards the next development phase of the Razorback Iron Ore Project in South Australia.
The company’s recently signed heads of agreement with strategic partner JFE Shoji Australia Pty Ltd, along with active participation in state and federal government consultations on the green iron industry, have laid the groundwork for Razorback’s development. This project is poised to become a major large-scale mining operation, potentially contributing significantly to South Australia’s economy.
However, Magnetite Mines acknowledges the challenging funding environment driven by current equity capital market conditions. To address this, the company has decided to consolidate its operations and reduce corporate presence in Sydney, shifting its focus to Adelaide, which is closer to the Razorback Project in the Braemar Iron Formation.
In light of prevailing market conditions, the company has also opted to reduce the size of its board of directors. Magnetite believes that a smaller board will enhance operational efficiency and help the company maintain focus on its core priorities as it approaches a key development decision for Razorback.
These strategic moves reflect the company’s efforts to position itself for long-term success amid an evolving mining landscape in Australia.
Magnetite board changes
The board has appointed current CEO Tim Dobson to the role of managing director with immediate effect in recognition of his deep international experience and his role in positioning the company for its next stage of Razorback’s development with multinational strategic partners.
Dobson is a mining leader with more than 36 years experience leading and developing world-class operations. He has a track record in transformational leadership through the application of sound strategy, technical capability and building high-performance teams.
Prior to joining Magnetite, Dobson was CEO of Heron Resources and prior to that, he worked with Sherritt International Corporation where he was president of its US$8 billion Ambatovy nickel operations in Madagascar during its transition from early ramp-up to stable operations before assuming responsibility for the company’s nickel and cobalt operations in Canada and Cuba.
He has also held a series of executive leadership and CEO roles with Norilsk Nickel, Lihir Gold (PNG), Kimberley Rare Earths, Anova Metals and Polymetals, where he led the development of the successful White Dam gold project in South Australia.
Additionally, Jim McKerlie has decided to step down from the chair role due to personal commitments and competing business interests.
Non-executive director Paul White has been appointed to the role of chair, commencing immediately and until such time that a new chair is appointed.
White joined the Magnetite board in January 2022 and is a highly accomplished and experienced business leader with a track record of driving organisational performance and delivering superior outcomes in both corporate and board positions.
He has substantial executive experience with global mining companies including FTSE-listed Anglo American (JO:AGLJ) and Xstrata, with expertise in people strategy, business transformation and community stakeholder relations.
Non-executive director Peter Schubert is not seeking re-election at AGM after serving on the Magnetite board for over eight years, including a period as executive chair and as CEO.
Non-executive director Carmen Letton has also resigned from the board in support and alignment with the objectives of this review.