(Alliance News) - Petropavlovsk PLC on Monday said it has hired Malay Mukherjee as a new independent non-executive director, effective immediately, and that PricewaterhouseCoopers rejected its appointment as auditor.
The FTSE 250-listed Russia-focused gold miner said Mukherjee has 40 years of experience in a range of technical, commercial and managerial roles in the mining and steel industry, including many projects across Eastern Europe and Russia.
He spent 16 years with steel maker ArcelorMittal SA, during which time he served on the board of directors. He is currently a director of VA Tech Wabag Ltd, as well as non-executive director of Indian steel company JSW Steel Ltd.
Separately, Petropavlovsk said that Katia Ray will step down from the board role of independent non-executive director effective immediately due to personal reasons.
"I am delighted that Malay Mukherjee is joining the board. As a new independent director with a wealth of relevant experience in relevant geographies, he will bring fresh perspective and support strong oversight. I am sorry that Katia is unable to continue, and she leaves with our best wishes and thanks for her service on behalf of shareholders," said Chair James Cameron.
Cameron was appointed as chair only last week, promoted from independent non-executive director.
This was as Maksim Meshcheriakov was hired as interim chief executive officer to "ensure operational stability" and strengthen governance of the company following a bitter struggle among Petropavlovsk shareholders over the composition of the board.
Petropavlovsk on Monday also announced that PricewaterhouseCoopers has rejected its appointment as Petropavlovsk's auditor.
This comes after Deloitte decided not to seek reappointment as the Petropavlovsk's auditor earlier this year on concerns of the company's "internal controls and systems for financial reporting", the Financial Times reported.
PricewaterhouseCoopers said its rejection was based on the recent significant changes in the composition of the board of directors, namely the removal of the majority of both independent and executive directors, as well as concerns over the governance environment and the lack of clarity as to the future direction of the Petropavlovsk group."
Petropavlovsk is once again in the process of identifying a new auditor.
The search for an auditor commenced in July after 5% shareholder Everest Alliance Ltd demanded an "independent forensic investigation" into the company's dealings with its directors and managers over the past three years. It also demanded the company probe any dealings with IRC Ltd, which is 31% owned by Petropavlovsk and operates the Kimkano-Sutarsky mine.
In June, Petropavlovsk announced the election of a new chair, chief executive and two directors, but said it believed the voting process at its annual general meeting to appoint the new board members was skewed. Since then, the company has been embroiled in a fight for control by large stakeholders JSC Uzhuralzoloto Group of Cos, Everest Alliance, Slevin, and Fortiana Holdings.
The Financial Times said the turmoil in June was caused when UGC, a rival Russian miner, and three other investors ousted half of the company’s board, including chief executive Pavel Maslovskiy.
Petropavlovsk shares closed up 1.3% at 31.50 pence on Monday in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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