Minerals and Metals Group (MMG) has announced that its board will be made up of former executives from both Minmetals and OZ Minerals.
MMG was established earlier this month by Minmetals to manage the Australian assets the company purchased in its $US1.354 deal with OZ Minerals.
Minmetals president Zhou Zhongshu has been named chairman of the new company, while former OZ Minerals chief executive has been given the same role with MMG and received a seat on the board.
Among MMG’s seven board members, five are formerly of Minmetals, with the remaining two places filled by former OZ employees.
In order to satisfy one of the pre-conditions of the asset sale, MMG also announced that it would have a management team made up entirely of former OZ Minerals executives.
Australian regulators stipulated that a new company must have a predominantly Australian management team when they approved the sale of OZ Minerals’ assets to the Chinese State-owned Minmetals.
According to Michelmore, the new MMG board will set the appropriate attitudes of corporate control for the new company.
“A strong governance structure is important in providing effective management of our external and internal relationships,” he said.