Gindalbie hands over Karara leadership

Gindalbie Metals is handing over leadership of Karara Mining, with the venture's major shareholder, Chinese steelmaker AnSteel, appointing a new chief executive.

In a statement today, Gindalbie said Karara CEO Dale Harris would step down and be replaced by the joint venture’s current chief operating officer, Zhang Yuan.

Chen Ping will step down as one of Gindalbie's non-executive directors.

Mr Harris will cease working in his position in November.

Karara, which is 52 per cent owned by Chinese steel maker AnSteel and 48 per cent owned by Gindalbie, operates the Karara iron ore project in the Mid West.

AnSteel gradually took control of the project last year after injecting cash and trading debt for equity to boost its stake in the venture to over 50 per cent.

Gindalbie chairman Keith Jones said that, under Mr Harris’s leadership, magnetite production increased 105 per cent and unit costs were reduced by 55 per cent, with production in July achieving ‘design nameplate’ performance.

“While there remain further challenges ahead, Karara has clearly made a step change in performance under Mr Harris’s leadership and we thank him for the role he has played,” Mr Jones said.

Gindalbie company secretary and general counsel Christopher Gerrard has also resigned and transferred to Karara to serve in the same roles.

Earlier this week, Gindalbie announced that its acting managing director, Michael O'Neill, had passed away.

He had served in the top position since April last year, and was on the board of the company since 2006.

Gindalbie shares were unchanged at 4 cents each at 12:40pm.