PERTH (miningweekly.com) – Iron-ore developer Sundance Resources on Tuesday announced a number of cost cuts as part of a cash management strategy while the company moved ahead with the development of its Mbalam-Nabeba iron-ore project, on the border between Cameroon and the Republic of Congo.
The company told shareholders that director Fiona Harris would step down from the board at the start of January this year, reducing the number of board members to five, after Michael Blakiston did not re-nominate for his position, and George Jones retired without a replacement.
Wal King replaced Jones in his role as chairperson.
King and the non-executive directors have all agreed to a 10% reduction in fees, with the Sundance MD Guilio Casello and the other members of the senior management team have also agreed to a 10% reduction in salary.
Furthermore, an internal review has identified a number of additional cost cutting measures, including a reduction in staff numbers and overheads.
Casello said on Tuesday that the difficult decisions made by the company were appropriate, owing to the conditions facing all iron-ore developers.
“These are never easy decisions to make and we want to recognize the tremendous contribution and progress made by our staff and contractors to date. We do, however, believe these decisions are in the best interest of Sundance shareholders and will ultimately allow us to deliver a world-class iron-ore project.”
Sundance was currently developing its Mbalam-Nabeba iron-ore project, which crosses the border between Cameroon and the Republic of Congo. The Nabeba deposit would underpin Stage 1 of the Mbalam-Nabeba project development, which was a 35-million-tonne-a-year direct shipping ore operation, which would run for a minimum of ten years.