Johannesburg, South Africa — 09 May 2013 – AngloGold Ashanti Limited “’ the world’s third-largest producer of the precious metal “’ has appointed its finance head, Srinivasan Venkatakrishnan, as the new chief executive officer of the company.
Bloomberg News reports that the appointment is effective immediately, according to an AngloGold statement here. The company had considered internal and external candidates after Mark Cutifani had stepped down to lead Anglo American plc on April 3, leaving Venkatakrishnan, 48, known as Venkat, and executive director Tony O’Neill as joint interim CEOs.
Venkat offers a “seamless” transition as he is familiar with AngloGold’s operations, finances and strategy, said David Davis, a mining analyst at SBG Securities Limited. His appointment comes before wage negotiations expected in June, held through South Africa’s Chamber of Mines. The National Union of Mineworkers, an ally of the ruling African National Congress, has said it will seek a double-digit increase.
“Venkat’s challenge will be to manage the difficult relationship between mine workers, unions, the ANC and economic reality,” John Meyer, an analyst with London-based SP Angel Corporate Finance LLP, said in an e-mailed note. “The recent gold-price fall combined with an uncertain outlook for the metal gives less room for maneuver.”
Bullion had its biggest two-day drop in 33 years last month. The metal has rebounded 9.6% from a two-year low it touched on April 16. AngloGold gained 1.6%to R169.66 by the close in Johannesburg.
Source: Bloomberg News. For more information, click here.