Newmont Mining CEO steps down

Newmont Mining CEO to step down as the company looks to boost production amid rising costs.

Newmont Mining Corp announced chief executive Richard O'Brien will bow out of the top job on March 1, and is also set to retire from the board.

Chief operating officer and president Gary Goldberg is set to take the top job, the Financial Review reports.

The company faced a tough year as production fell and costs rose.

In July, the company reported adjusted net income of $294 million or 59-cents per share for the second quarter, down from $445 million or 90-cents per share for the second-quarter 2011.

Net income for the second quarter was $279 million, down 28% from $387 million in net income for the same period of last year.

Production of gold also slowed for the company.

For the first half of this year, Newmont reported attributable gold production of 2.49 million ounces, down from 2.56 million attributable ounces reported during the same period of last year.

A report released yesterday also showed gold production at Newmont/Barrick’s Super Pit in Kalgoorlie declined by 42,000 ounces due to lower ore grade and a reduction in the amount of ore treated.

In September the company cut 50 jobs in Australia.

Speaking to Australian Mining, Newmont Asia Pacific spokesperson Sharon Iannello said the Australian workforce has been reduced by 50 positions following a recent cost review.

"While redundancies were offset by reductions in budgeted vacant positions and natural attrition, there have been job losses largely in support service areas from the Subiaco regional office and in Boddington," she said.

Top managers are also being replaced by other mining companies.

BHP Billiton announced it was looking for a new chief in November, while Anglo American’s CEO Cynthia Carroll stepped down from her position in October.

Image: goldnet.com

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