Ann: Appointment of CEO, page-29

A former BHP mine boss who unsuccessfully sued the resources giant for $2 million nine years ago has been tapped to head the embattled Salt Lake Potash.The Ian Middlemas-chaired company yesterday named Isak Buitendag to replace Tony Swiericzuk, who resigned as chief executive last month amid ongoing problems with the ramp-up of the company’s Lake Way sulphate of potash project near Wiluna.Mr Buitendag comes from the Glencore-controlled, Kazakhstan-based base metals miner Kazzinc where he is general manager of transformation.A former senior executive with Fortescue Metals Group, Mr Buitendag sued erstwhile employer BHP after he was dismissed as general manager of the Ravensthorpe nickel operation in January 2009, a day before the mine’s closure was announced.Mr Buitendag was dismissed for failing to follow company asset disposal procedures when he arranged for two unused transportable houses owned by BHP to be donated to two local sports clubs.He had sought about $2m in damages, including $1.2m in shares he lost when sacked, after claiming he was unfairly dismissed. However Supreme Court Justice Rene Le Miere ruled against him in November 2012.Shares in Salt Lake have been suspended since July 27 when the company revealed serious problems with the ramp-up of Lake Way which would delay production and result in the project’s third cost blowout.The West Australian understands the company is seeking funding of nearly $100m to cover the shortfall.It is the third time Salt Lake has had to tap the market for extra cash after saying Lake Way was fully funded in August last year when it secured a $US138 million debt facility and raised $98.5m in a placement.In December, the company asked shareholders for $58m via a heavily discounted equity raising and in May it was forced to raise another $28m after striking problems and delays with the commissioning of the $264m project.Mr Buitendag’s appointment remains subject to Salt Lake’s relisting on the ASX.In a statement, he said he was excited to be joining the company at such a critical stage of its development.“(I) look forward to working with the team to deliver Lake Way and grow the business into a meaningful player in the global sulphate of potash market,” Mr Buitendag said.Salt Lake is one of a handful of aspiring WA producers of sulphate of potash, which is a high-value fertiliser used for crops such as fruits, vegetables, nuts, tobacco, tea and coffee.Rival Kalium Lakes was also forced to seek $60m in May last year as part of an emergency raising to cover a cost blowout at its Beyondie project 160km south-east of Newman.While first production is expected next month, Kalium is believed to need another $45m to boost production from 90,000tpa to 120,000tpa.