Hamilton to quit as Mt Gibson chairman

The chairman of Mount Gibson Iron, Neil Hamilton, is stepping down at the mining company's annual general meeting next week after a dispute with its major shareholders.

In a statement to the Australian Securities Exchange, Mount Gibson said Mr Hamilton's decision followed discussions with major shareholders APAC Resources and Fushan who both wanted a small board.

APAC and Fushan hold 25.85 per cent and 14.24 per cent of the company's shares respectively.

"Mr Hamilton has been unable to solicit a definitive commitment from either shareholder to ensure that any reduction in the number of independent directors on the Board will be matched with a reduction in the number of nominee directors, thereby preserving the independence and balance of the Board," the statement said.

The company's AGM is scheduled for November 17.

See company statement below:

Mr Neil Hamilton, the Chairman of Mount Gibson Iron Limited ("Mount Gibson"), has advised the Board that he will not stand for re-election as a director at the upcoming Annual General Meeting ("AGM") on 17 November 2010.

Mr Hamilton's decision follows discussions with Mount Gibson's major shareholders, APAC Resources and Fushan, who have both indicated a desire to see a reduction in the size of the Board. Mr Hamilton has been unable to solicit a definitive commitment from either shareholder to ensure that any reduction in the number of independent directors on the Board will be matched with a reduction in the number of nominee directors, thereby preserving the independence and balance of the Board.

The Independent Non-Executive Directors of Mount Gibson remain committed to maintaining corporate governance principles and recommendations, and will await the results of the AGM resolutions and the appointment of a replacement Chairman