MELBOURNE, Australia, April 23, 2014 /CNW/ - Newcrest Mining Limited
(ASX: NCM) ("Newcrest") today announced the appointment of Sandeep
Biswas as Managing Director and Chief Executive Officer, which will
take effect on 4 July 2014.
As previously announced, Mr Biswas commenced with Newcrest on 1 January
2014 as Chief Operating Officer and as an Executive Director, with the
expectation that he would succeed current Managing Director and Chief
Executive Officer Greg Robinson in the latter half of calendar 2014.
Mr Robinson, who joined Newcrest in November 2006, initially as Finance
Director and Chief Financial Officer, was appointed Managing Director
and Chief Executive Officer in July 2011. He will leave Newcrest and
retire from the Board on 4 July 2014.
Newcrest Chairman Peter Hay said Mr Biswas' outstanding operations
background across multiple commodities, together with his strategic and
leadership capabilities, will contribute to Newcrest's success over the
short and longer term.
"In particular, I am confident that Sandeep's focus on asset
utilisation, cost reduction, increasing cashflow and simplicity of
purpose will continue to accelerate the positive performance turnaround
we have seen over the past four quarters," he said.
"I would like to thank Greg for his deep commitment and dedication to
Newcrest and the people who make up the Newcrest team, particularly his
unflagging efforts to improve the Company's performance over the past
12 months. His legacy, including the implementation of disciplined
management systems and processes, the successful implementation of
major capital projects - including Cadia East and the Lihir plant
expansion - and the measured progress of Wafi Golpu, will provide a
solid foundation for the Company going forward."
Mr Hay said he expected the leadership transition to Mr Biswas to
proceed smoothly over the next few months.
Mr Robinson today welcomed the announcement of Sandeep Biswas as his
successor and said Mr Biswas had developed a strong understanding of
Newcrest and the gold industry over the past few months.
"After eight years with Newcrest, I am pleased to hand over to Sandeep
who has already made a positive impact on the Company and its
operations since he started with us in January, and I am sure he will
continue to significantly improve the business in the years ahead.
Mr Biswas was previously Chief Executive Officer of Pacific Aluminum, a
wholly owned subsidiary of Rio Tinto, which incorporated the bauxite,
alumina, refining and smelting operations in Australia and New Zealand.
A chemical engineer who began his career with Mount Isa Mines, working
in both Australia and Europe, Mr Biswas' experience includes technical,
operational, business development and strategic roles across
commodities including aluminium, copper, lead, nickel and zinc. He was
educated in Brisbane and completed a Bachelor of Chemical Engineering
with Honours at the University of Queensland.
Mr Biswas said: "Newcrest has some fundamental strengths, including the
commitment and dedication of its people, its long life reserves and
resources, and its high standard of installed infrastructure and
systems. I am looking forward to working with the Newcrest team to
deliver on the Company's potential."
A summary of the key terms of Sandeep Biswas' employment as Managing
Director and Chief Executive Officer is set out in the attached
Greg Robinson will work through his notice period until his departure on
4 July 2014 and will receive his current base salary and statutory
entitlements during that period. Mr Robinson will receive a payment in
lieu of notice for the balance of his contractual notice period, in
accordance with his terms of employment. His Long Term Incentive and
Short Term Incentive entitlements will be treated in accordance with
the applicable plan rules, pro-rated to his departure date, and remain
subject to all applicable performance conditions.
A copy of the release may be found at www.newcrest.com.au and on www.sedar.com.
Summary of Material Terms and Conditions of Employment of Mr Sandeep
Mr Biswas will continue to be employed on the usual terms offered to
Newcrest executives. The remuneration package offered to Mr Biswas is
designed to link reward to both Company and individual performance, and
to align with the interests of shareholders through a significant
at-risk performance-based component.
Mr Biswas will be appointed as Managing Director and Chief Executive
Officer effective 4 July 2014.
His contract of employment is ongoing until terminated by either Mr
Biswas or the Company.
A fixed TEC (Total Employment Cost) component of A$2,300,000 per year
inclusive of superannuation, subject to annual review.
A short term incentive (STI), in accordance with the STI plan rules
which apply from time to time, of 100% of TEC at target and up to 200%
of TEC at maximum.
A long term incentive (LTI) award in accordance with the LTI plan rules
that apply from time to time. The percentage of LTI is 150% of TEC.
Mr Biswas will retain his current contractual entitlement to two
tranches of ordinary shares in the Company, each to the value of
A$500,000, (or cash rather than shares at the Company's option) to be
transferred to Mr Biswas respectively following the Company's Annual
General Meetings in October 2014 and 2015, subject to Mr Biswas'
continuing employment and satisfactory performance. The number of
shares to which Mr Biswas will be entitled, in each tranche, will be
calculated with reference to the value weighted average price of
Newcrest Mining Limited shares traded on the ASX in January 2014.
Termination and Notice
Mr Biswas' employment agreement may be terminated in the following
Resignation by Mr Biswas on three months' written notice.
Termination by the Company on 12 months' written notice. The Company may
elect to make a payment in lieu of notice, equivalent to base salary
payable to the date of termination, plus payment in lieu of annual
leave, long service leave and superannuation entitlements in
accordance with law. Termination benefits payable are subject to the
Corporations Act (Cth) 2001.
Termination by the Company without notice for serious misconduct or
other circumstances justifying summary dismissal. In this event, the
Company will pay his salary to the date of termination, plus payment in
lieu of any annual or long service leave and superannuation
entitlements in accordance with the law.
On termination, any entitlements held under the Company's long-term and
short-term incentive plans will be treated (and may be retained or
forfeited) in accordance with the applicable plan rules from time to
time. Details of these plans are set out in the Company's Remuneration
Report each year.
Mr Biswas will continue to be subject to restraint arrangements with
respect to his employment and solicitation of Company employees and
contractors, for a period of up to six months following cessation. He
is also subject to ongoing confidentiality obligations.
SOURCE: Newcrest Mining Limited
For further information:
T: + 61 3 9522 5493
T: +61 3 9522 5593