Charlotte Mathews
25 June 2008
Johannesburg — FORMER Anglo Platinum (Angloplat) CEO Ralph Havenstein had been appointed CE of the international subsidiary of Russian nickel and platinum group metals (PGMs) giant Norilsk Nickel, the company said yesterday.
The appointment might indicate Norilsk plans to grow in PGMs in southern Africa, since Angloplat only has operations in SA and Zimbabwe, and those would be Havenstein's areas of greatest expertise.
Norilsk's assets in southern Africa are its 85% stake in Tati Nickel in Botswana and a 50:50 joint venture with African Rainbow Minerals in the Nkomati nickel project in SA.
The group is the world's biggest producer of nickel and palladium, which is one of the PGMs, and among the world's biggest producers of platinum, rhodium, copper and cobalt.
Asked if the appointment meant Norilsk planned to expand in platinum, especially in SA, the group's investor relations manager, Ulyana Denga, said Norilsk Nickel was always looking for opportunities to create additional value for shareholders, both through brownfield and greenfield projects. "Anyway, we do not disclose exact plans on further Norilsk Nickel mergers and acquisitions activity," she said.
Havenstein said Norilsk's international businesses were really focused on nickel, not platinum and palladium.
Cadiz African Harvest Asset Management head of equities Simon Hudson-Peacock said to his knowledge Norilsk Nickel's focus had always been more on nickel than PGMs. PGMs were a by-product of the group's nickel mining. But with the sharp increase in PGM prices, and global expectations of continuing supply-demand imbalances in the PGM market, Norilsk may havefound it necessary to appoint a PGM specialist to exploit those revenues.
The appointment could also signal Norilsk's plans to expand outside Russia, Hudson-Peacock said. But unless Norilsk were to make a bid for Lonmin -- which has been rumoured for some time to be a potential takeover target -- it was difficult to imagine assets of sufficient size in SA to interest Norilsk.
Norilsk said Havenstein, who would be based in Johannesburg, would take on the appointment of CE of Norilsk Nickel International from September 1. He would have overall responsibility for the group's operations and development projects in Finland, SA, Botswana and Australia.
Havenstein left Angloplat in August, saying the group needed new leadership to achieve its safety goals. Anglo American CE Cynthia Carroll set a target of zero fatalities at Angloplat after a spate of deaths at its mines.
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