PORTMAN TO DELIVER IRON ORE
EXPERTISE TO GWR BOARD
Portman Limited (Portman ASX:PMM), Australia’s
third largest iron ore producer, today reiterates its intention in requesting
that Golden West Resources Limited (Golden West ASX:GWR) convene a General
Meeting of its shareholders. Portman’s sole aim in requesting the General
Meeting is to bring appropriate iron ore credentials to the Golden West Board
for the benefit of all Golden West shareholders.
The resolutions proposed by
Portman allow Golden West shareholders to vote on significantly increasing the
iron ore expertise on the Golden West Board via the election of Mr. Paul Piercy as an independent non-executive director and Mr.
Paul Richard Mehan as a non-executive director.
Through the nomination of Portman Managing Director, Mr. Richard Mehan, Portman is seeking Board representation which
appropriately reflects its 19.9% shareholding. Both nominees offer public
company board and iron ore sector experience which will better position the
Golden West Board to create value for all shareholders from Golden West’s asset
base.
In order to keep the Golden
West Board to its current size of four directors, Portman has
proposed a resolution to remove the current executive chairman, Mr. Con
Markopoulos and current director, Mr. Michael Wilson.
In April 2008, Portman
approached Golden West and requested a seat on the Golden West Board. This
request was rejected.
“Portman’s proposal is
centred on the addition of significant iron ore experience to the Golden West
Board – a move that Portman, as a major shareholder of Golden West, believes
will add significant value to all shareholders,” Mr Mehan
said.
“We believe that to give the Wiluna West exploration
asset the best opportunity of development success, it is critical to have the
right type of iron ore experience on the Golden West Board now. As we
have experienced first hand, it takes many years to develop an iron ore asset
from exploration to production and appropriate iron ore skills are required to
provide the maximum the opportunity of success.
Mr. Mehan added that
discussion and decisions about preferred port access and infrastructure routes
were premature.
“Without a detailed feasibility study, it’s impossible
to complete an accurate cost/benefit analysis of port and rail access, and we
certainly do not want to see strategy developed on the run in this regard.”
“In our view, the critical point here is that
Esperance is an option but not the only option" Mr Mehan
said.
“Optionality drives value
for all shareholders and it is prudent for the Golden West Board to keep open
all project development options until there is enough certainty in the project
to allow for a detailed bankable feasibility study.”
Mr. Mehan said Portman was
not considering a takeover and therefore had not made an assessment of
potential synergies. Portman was focussed on an outcome that was in the
best interests of all Golden West shareholders.
“The expression “aggressively take control by the back door” has been used by Golden West.
This does not represent Portman’s position and is misleading to the Golden West
shareholders. Portman is simply asking for one representative on a Board
which will comprise five directors (following the appointment of a Managing
Director). We have also nominated another candidate, who is independent
of Portman and would be well‑qualified to serve as Chairman if appointed by the
Board. Portman recognises that one of the most important decisions for
Golden West is the selection of a new Managing Director. This decision
will, of course, be made by the Golden West Board."
As previously stated in
announcements to ASX, Portman has no current intention of making a takeover
offer for Golden West. Portman's actions are not part of any bid
preparation. Portman's sole aim is to bring appropriate iron ore
credentials to the Golden West Board.
Golden West shareholders will receive further written advice on voting over the
coming weeks.
Contact:
Richard Mehan
Managing
Director
Portman
Limited
Tel: +61 (0)
8 9422 3400
Media
Contact:
Warrick Hazeldine
Purple
Communications
Tel: +61 (0)
8 9485 1254
Mob: +61 (0)
417 944 616
ANNEXURE
About Portman Limited
Portman
Limited is a West Australian based supplier of iron ore to the Chinese and
Japanese markets. Portman Limited is one of Australia’s
largest producers of iron ore. Approximately 75% of product is exported to China
and 25% to Japan.
Portman Limited’s position in the world market as a niche player has been won
through strong marketing skills and a strong management culture. Portman’s principal
assets are the:
·
Koolyanobbing project in Western
Australia with current production of around 8mtpa; and
·
Cockatoo Island
project located off the north-west of Western
Australia. Portman owns 50% of this project which produces
approximately 1.5 mtpa of premium fines.
Portman
Limited’s corporate objectives are to improve returns from the existing
businesses, deliver long term growth in earnings per share and seek growth
opportunities to provide enhanced shareholders return through exploration
success, incremental expansion opportunities and prudent acquisitions.
Portman
Limited is owned 85% by Cleveland Cliffs which is a US
listed and based iron ore company with a market capitalisation of approximately
US$10 billion. Cleveland Cliffs recently announced its intention to merge with
the US
listed coal company, Alpha Natural, in a cash and stock transaction that would
value the merged group at approximately US$ 20 billion.
Visit: www.portman.com.au
Profile of Mr Paul Piercy
Mr Piercy
is a metallurgist who has held senior/executive management and technical
positions within the Rio Tinto Limited group during the 1980s and 1990s,
including General Manager of Hamersley Iron’s Dampier port and rail operations,
General Manager of Hamersley Iron’s Paraburdoo and Channar operations and Managing Director of Novacoal and Kembla Coal &
Coke. More recently Mr Piercy was Managing Director
of WesTrac Equipment from 1997 to 2000 before playing
an integral role in the successful establishment of WesTrac
China, as its Chairman/CEO
based in China.
His broad mining, industrial and
equipment management / servicing experience also includes International roles
in Africa, China, UK and Papua New Guinea.
Mr. Piercy
is a Non-Executive Director of Australasian Resources Limited and Chairman of
APAC Coal Ltd and a practising consultant.
Mr. Piercy
is a Fellow of AusIMM (Australasian Institute of
Mining and Metallurgy), a Chartered Professional – Management (AusIMM), a Fellow of the Australian Institute of Company
Directors and a Fellow of Australian Institute of Management
Profile of Mr Richard Mehan
Mr Mehan holds a Bachelor of Economics degree from Monash University.
He has 28 years' experience in the resources industry with the vast majority
being in the traded iron ore industry.
In 1981, Mr Mehan joined Hamersley Iron and during the subsequent 15
years worked in a wide variety of roles including sales and marketing, business
analysis, market research and shipping.
In 1998, Mr Mehan joined Portman Limited and prior to assuming the role
of Managing Director in 2005 held the roles of General Manager – Iron
Ore, General Manager – Marketing and
Chief Operating Officer.
On January 1st
2007, Mr Mehan assumed the role of President and CEO
of Cliffs Asia Pacific in addition to his ongoing role of Managing Director of
Portman Limited.
Mr Mehan is a Director of the Industrial Foundation for
Accident Prevention (IFAP), a leading not-for-profit safety training and
leadership organization.
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