27/06/2013 - 12:03

Rowley to lead Galaxy's review

27/06/2013 - 12:03

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Rowley to lead Galaxy's review
Galaxy's Jiangsu lithium processing plant in China.

Struggling lithium miner Galaxy Resources has appointed First Quantum Minerals co-founder Martin Rowley to a special management committee tasked with overseeing a review of the company’s operations.

The committee will also include: interim managing director Anthony Tse, who stepped up to the role after Iggy Tan resigned earlier this month; non-executive director Xiaojian Ren; and executive Charles Whitfield.

Mr Tse said the committee would work on various initiatives, including a general review of the business, its operations and its financial structure.

The lithium miner has been cutting costs across its operations over the past year, including suspending work at its Mt Cattlin mine near Ravensthorpe.

Galaxy also recently launched a deeply-discounted rights issue to raise $47 million.

The rights issue was priced at 8 cents per share, a 65 per cent discount on its closing share price of April 24, the last day its shares traded.

Galaxy’s issues arose after a pipeline ruptured at its Jiangsu processing plant in China late last year, which led to the East China Mineral Exploration and Development Bureau withdrawing a $66 million financing commitment.

Mr Tse said Mr Rowley would bring a wealth of management expertise from his experience at the helm of First Quantum, which owns the Ravensthorpe nickel mine in the south-east of the state.

Mr Rowley was also previously chairman of Luithium One, which was acquired by Galaxy last year.

“As well as his role on the special committee, he will assist in a review of the board structure with the objective of evaluating and identifying the optimal composition and skill set required to best serve the strategy and development of Galaxy going forward,” Mr Tse said.

At 12:00PM, WST, Galaxy shares were steady at 23 cents. 

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