The managing director of Rex Minerals, Mark Parry, has resigned in the wake of government approvals for the Hillside Project.
Executive chairman Dr David Carland will assume the role until a permanent replacement is found.
“Given the delay to the feasibility study to concentrate attention on a smaller scale start-up, the managing director’s role will take on a new focus during this period. In view of this Mark has decided to step down,” Carland said.
The board of Rex Minerals has opted to carry out a smaller scale start up for Hillside, which will require an extension to the project feasibility study, which was almost complete.
The new feasibility study will include emphasis on lower up-front capital costs; smaller footprint for the initial pit; higher grades and lower strip ratio at start-up; and alternative designs for mining method, haulage, processing and shipping.
The Hillside project was met by opposition from green and farming groups, which now suggest the change of plans indicates a lack of feasibility for the project in any event.
Greens MP Mark Parnell said the downsizing was good news, and that the Government needed to explain the situation to the local community.
“What are the conditions they're going to attach to mining in farming areas? I think the preferred outcome is for miners to keep outside our grain-growing areas,” he said.
“A project that was going to sterilise thousands of hectares of farming land for a 15-year mine really made no sense at all.”
Rex Minerals share price fell 5 per cent from $0.39 on friday, and has dropped even further this morning to down to $0.27.