Vladimir Kim, the Chairman and major shareholder of diversified mining giant Kazakhmys, told investors on Friday that he would hand over his duties to a new independent Chairman so that the company could meet regulations on corporate governance.
Kim joined Kazakhmys in 1995 as Managing Director and Chief Executive Officer when the company used to be called Zhezkazgantsvetmet JSC. He was named the Chairman five years later and then became the Chairman of Kazakhmys when it changed its name and first listed in London in 2005.
Speaking at today's annual general meeting (AGM), Kim said: "Having put in place the listing, the funding of our growth projects and the start of their development, I think that now is the right time to hand on the role to a new and independent Chairman, which will bring the company fully into line with the UK Corporate Governance Code. I anticipate that we will be able to arrange a handover by the time of the next AGM."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
He will remain as a non-executive director on the board and said he will continue to be "closely involved" with the company. "I currently have no intention to reduce my shareholding," he added.
Kim, who was 32nd on the 2012 Sunday Times Rich List, owns a sizeable 28% stake in Kazakhmys, while the Kazakh government owns a 26% interest in the firm.
"The board of Kazakhmys has proven to be a strong and positive guiding force for the group and I think this change will be a further improvement," Kim said.
Outlook still strong
The group, which has significant interests in copper, gold, zinc, silver and power generation, has $4.2bn of funding towards its development projects, Kim said at the AGM. Together with its power assets, it is investing around $6bn in its growth, which is expected to ramp up production from 300kt of copper to 500kt in the next six years.
Kim assured that Kazakhmys is still seeing strong copper demand from its customers. "Copper remains fundamental to economic growth, and supply is naturally constrained. Copper remains one of the most attractive metals to be involved with," he said.
Kazakhmys's shares were trading 2.32% lower at 758p by 15:28 in afternoon trade, with the wider mining sector under heavy pressure after Chinese industrial output figures disappointed this morning.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
