Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian miner Eldorado Gold (TSX:ELD) (NYSE:EGO) said Friday it is appointing one of Goldcorp’s (TSX:G) top executives to succeed Paul Wright, who will retire as president and CEO of the Vancouver-based miner next year.
Wright, who joined Eldorado in 1996 and has held several management positions prior to becoming its president and CEO in 1999, will be the company’s new chairman.
George Burns, the current executive vice president and chief operating officer of fellow Canadian mining company Goldcorp, will succeed Wright and also join Eldorado’s board of directors, the firm said.
Wright, who joined Eldorado in 1996 and has held several management positions prior to becoming its president and CEO in 1999, will continue as a member of the board. He’ll move next year to the chairman position, while Robert Gilmore, the miner’s current chairman, will become vice-chairman and independent lead director.
The vacancy at Goldcorp will be filled up by one of the company’s senior vice-presidents, Todd White, effective Jan. 1
Eldorado, which has mines and projects in Turkey, Romania, Brazil and Greece, was granted last month a long-awaited permit to build a plant at its Skouries gold mine in northern Greece, one of four major operations the firm has in that country.
Also in November, the company completed the sale of its three assets in China to an affiliate of Yintai Resources (SHSZ:000975) for $600 million. Such move marked the conclusion to Eldorado’s 11-year history in the Asian country.
