(Alliance News) - Rainbow Rare Earths Ltd on Wednesday said it appointed George Bennett as chief executive officer, with immediate effect.
In addition, the company reported that its Gakara project, located in Burundi, continued to be affected by seasonal rainfall and in particular by the inability of locally rented haul trucks to operate effectively in wet conditions.
This meant that stripping of waste was impaired, and progress was far slower than hoped, Rainbow explained. Ore mined was lower in the three months to the end of June, at 230 tonnes, and one batch of 100 tonnes of concentrate was exported.
In comparison, for the three months to the end of March, the company mined 347 tonnes of ore and sold 100 tonnes of concentrate.
Realised concentrate prices were lower in the quarter, at USD1,448 per tonne versus USD1,653 per tonne in the third quarter to March 31.
"These production challenges clearly underlined the importance of raising finance to purchase new trucks in order to address operating efficiencies ahead of the next rainy season, which begins in October. Orders for new items of equipment are now being put in place, in order to meet these deadlines," Rainbow said in its statement Wednesday.
Turning back to CEO appointment, the rare earth element mining company noted that Bennett has led a number of mining and energy companies, including Shanta Gold Ltd, OreCorp Ltd, Argentum Pty Energy, and most recently Karo Power Pvt Ltd.
Martin Eales has been CEO since 2014. Rainbow said that under his oversight the company was transformed from an early-stage exploration play to Africa's only producing rare earth mine, is stepping down.
"We are delighted to bring someone of George's calibre on board. George has considerable experience in developing assets, particularly in the natural resources and energy space, and has a track record of success," said Chair Adonis Pouroulis.
"At the same time, I would like to thank Martin for his support during the early stages of Rainbow's development, initial public offering, and initial production," added Pouroulis.
Rainbow shares were trading 10% lower on Wednesday in London at 2.92 pence each.
Rainbow Rare Earths (RBW)