Heinz Schimmelbusch has been replaced as chairman of Metall Mining (TSE).
The company’s board of directors has filled the vacancy by appointing Klaus Goeckmann, a director of Metallgesellschaft AG.
Schimmelbusch reportedly lost his position for failing to inform the company’s supervisory board about losses resulting from oil futures contracts in the U.S.
In an effort to find sources of cash, Metallgesellschaft recently sold more than half its holding in Methanex Corp. of Canada; it now holds about 5%. Also, the company reduced its stake in Metall to 50.1% from 68% These transactions raised $194.7 million, but the company was nevertheless forced to seek financial support from its two major shareholders, Deutsche Bank AG and Dresdner Bank AG.
The changes in personnel and corporate holdings have left many in the industry wondering what the next step will be for Metallgesellschaft. There has been speculation that the company may further reduce its control of Metall and related companies Teck (VSE) and Cominco (VSE). Several analysts have warned of a potential crisis for the parent company.
As part of a review, Metallgesellschaft has ordered a special audit for its North American operations, including Metall.
Metall is a Canadian-based international company with significant mining and smelting interests in copper, zinc, lead, gold, silver and industrial minerals operations in North America, Europe and the Pacific Rim. Assets include an 87.3% equity interest in the Michigan-based, fully integrated copper producer Copper Range Company and a more than 15% stake in Ok Tedi Mining, a gold-copper producer in western Papua New Guinea. This past year, Metall merged with Minnova.
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