Iluka’s new managing director, David Robb, has been given the challenge of efficiently implementing the minerals sands miner’s company-making growth projects on the east coast.
Iluka’s new managing director, David Robb, has been given the challenge of efficiently implementing the minerals sands miner’s company-making growth projects on the east coast.
Iluka chairman Ian Mackenzie said the expansion projects in the Murray Basin, bordering Victoria and NSW, could determine the future of the company.
“We have major challenges ahead,” he said. “We need to execute major projects that could make or break the company.”
Iluka announced last week that Mr Robb would succeed Mike Folwell, who has left the company after four years.
Mr Mackenzie acknowledged that Iluka has been through “a pretty unacceptable year” with unplanned plant closures and write-downs affecting its performance.
Its latest results, for the half-year to June 30, showed a net profit of $32.2 million compared with $79.3 million in the previous corresponding period.
Its problems have included a massive cost blowout and 12-month delay in completion of its Douglas project in the Murray Basin.
Mr Mackenzie stood by Iluka’s view that the problems at Douglas rested with its contractor, Downer EDI subsidiary Roche Mining.
“We certainly don’t sheet the problem back to the management or to Mike,” Mr Mackenzie said.
In choosing a new managing director, he said the Iluka board had two main priorities.
“Looking ahead, it’s about detailed execution and delivering shareholder value,” Mr Mackenzie told WA Business News.
As well as commissioning the Douglas project, Iluka will be proceeding with development of its mineral sands deposits in the northern Murray Basin.
The company had planned to make a development decision during 2006 and Mr Mackenzie said there had been some slippage in this timetable.
Looking further ahead, the company will continue exploration of the extensive mineral sands deposits in the Eucla basin in outback South Australia.
Development of the east coast deposits will allow Iluka to optimise its Western Australian operations, which have been running at full production to meet strong demand for its products.
Mr Mackenzie said Iluka had a long future in WA but wanted to achieve a better return.
“We may consider where we operate certain plants or how we operate them,” he said.
Mr Robb will finish as managing director of Wesfarmers Energy early next month and have a six-week break before commencing at Iluka on October 18.
He told WA Business News he had not been looking for a change but was attracted by Iluka after being presented with the opportunity.
“The opportunity to lead a company that I think has good prospects and to run my own show is something that was appealing,” Mr Robb said. “There is a sense of excitement but also a sense of loss,” he said of his departure from Wesfarmers after 11 years.
Mr Robb said he wanted to sharpen the focus on shareholder returns “which goes without saying when you come from Wesfarmers”.
In regard to project execution, Mr Robb emphasised the need to have a good team and the right work environment.
“It is always a team effort,” he said. “It is as much about how you create the right climate of openness and transparency; not necessarily having a brilliant project director.”
