Globe Metals and Mining, an Australian Securities Exchange (ASX)—listed miner exploring for niobium at Kanyika in Mzimba, has announced the resignation of its chairperson Shao Yi with immediate effect.
In a statement posted on ASX website yesterday Globe expressed appreciation for the outgoing chairperson for his valuable contribution to the company since joining in 2011.
The miner’s managing director Alistair Stephens said Shao’s leadership has been through a challenging period for the company and the broader junior mining market.
“The board and I are grateful for his leadership and we wish him the very best for his future endeavours. The board will make an announcement on Mr Shao’s replacement in due course,” he said.
Globe is an African-focused resources company which aims at becoming the major niobium and tantalum producer in Southern and Eastern Africa.
Currently, the principal activities of the company are to explore, develop and invest in the resource sector with its major project being the development of the Kanyika Niobium Project (KNP) in Malawi.
In its annual report for 2013, the company said it will continue its cost cutting measures for the year ending June 30 2014 after reporting an $11.9 million [K5.3 billion, at the current exchange rate] loss.
In the report, the company, smarting from a consolidated loss after providing for income tax, said the cost reduction plan initiated has resulted in cash in the bank at year-end of $14.16 million [K6.3 billion].
“To improve and sustain efficiency, senior executives of the company have accepted reductions to remuneration, the company has conducted redundancies, the reliance on external consultants and contractors reduced and more efficient consultancy transferred to China businesses,” read the financial report signed by Stephens.
The report said exploration activity will be reduced and focus on the optimisation of Kanyika prioritised.
The group has other exploration projects that are progressing in Malawi and Mozambique.
KNP Environmental Impact Assessment (EIA) passed the main technical review hurdle and was approved by the National Council on Environment (NCE) and the Malawi Government provided the company with a draft Development Agreement.
Globe is being supported by its major shareholder East China Mineral Exploration and Development Bureau (ECE) and closely cooperates with several world-class niobium tantalum experts in China to optimise the technical flow sheet of Definitive Feasibility Study (DFS) to further reduce the cost and enhance the economic feasibility.