QMEB » Resources executive steps down with $6M payout
Industrial Relations Latest News Local Procurement Supply Chain News

Resources executive steps down with $6M payout

Andrew Cole
Andrew Cole

A mining boss will resign from duties with lucrative entitlements.

Andrew Cole recently confirmed he would not stay on after OZ Minerals (OZL) is purchased by competitor BHP for $9.6 billion.

The outgoing CEO will instead withdraw all of his OZL shares for about $6 million in cash. Cole originally paid $3 per unit when first appointed in late 2014 and, after BHP’s acquisition offer, the price soared by more than 840 per cent to $28.25.

His replacement will be outgoing automation technology executive Michelle Ash who will be promoted to growth vice president, and report to BHP chief operating officer Edgar Basto.

The “vast majority” of 3420 OZL employees are widely expected to be retained and join a “much larger” organisation. Affected workers are promised training programs, flexible work options, career progression opportunities and other “industry-leading” benefits.

“[BHP] has a high regard for the culture and people of the company as we have some very important operating assets here in South Australia and our projects in Western Australia and Brazil,” OZL chairman Rebecca McGrath said according to the Australian Broadcasting Corporation.

There is potential for further OZL staff promotions.

“BHP are currently in discussions with members of the senior management about opportunities for them in BHP, be that in South Australia or elsewhere in BHP and – during the next few weeks – it will be in discussions with others who hold other roles within the company,” McGrath said according to the broadcaster.

The approved takeover is expected to take effect on 2 May 2023, after which the following OZL operations will officially be owned by BHP:

  • Prominent Hill, 650km northwest of Adelaide
  • Carrapateena, 160km north of Port Augusta
  • West Musgrave, 500km west of Uluru
  • Carajás East and West, Brazil
  • Gurupi Province, Brazil.

Add Comment

Click here to post a comment