Danakali Limited notifies management changes
LONDON: Danakali Limited, potash company focused on the development of the Colluli Sulphate of Potash Project, has announced management changes.
· Current Non-Executive Chairman, Mr Seamus Cornelius, has been re-appointed as Executive Chairman
· The role of current Chief Executive Officer (CEO), Mr Niels Wage has been made redundant as part of a reallocation of responsibilities
· Basic board fee to be reduced by 33% immediately for all board members and board size to be reduced at AGM in Q2 2021
Executive Chairman:
Mr Cornelius was appointed as Non-Executive Chairman of the Company on 15 July 2013 and acted in the role of Executive Chairman from 14 June 2018 to 25 June 2019. Mr Cornelius is a corporate lawyer and former partner of one of Australia’s leading law firms. He has a high degree of expertise in cross-border transactions, particularly in the resources and finance sectors.
Mr Cornelius is a member of the Company’s Audit and Risk Committee, Remuneration and Nomination Committee and is the Chairman of the Colluli Mining Share Company (CMSC) (the 50:50 joint venture between Danakali and the Eritrean National Mining Corporation (ENAMCO) which owns 100% of the Colluli Potash Project (Colluli, or the Project)).
Mr Cornelius will be entitled to additional remuneration in respect of the executive duties to be performed as part of his new role. The remuneration package is in the process of being approved and the Company will update the market of the material terms once finalised.
CEO:
With the ongoing serious disruption to international travel caused by the Covid-19 pandemic the Company advises that as part of the restructure of roles and responsibilities which will increase efficiencies and reduce operating costs, the role of Mr Niels Wage, the Company’s Chief Executive Officer, has been made redundant. His responsibilities will be assumed by the Executive Chairman with support from other team members.
Mr Wage joined Danakali in June 2018 as Chief Commercial Officer before assuming the role of CEO in March 2019. Highlights of Mr Wage’s tenure include leading the Company through signing of documentation for the US$200m senior debt facility for CMSC from African Export Import Bank and Africa Finance Corporation (AFC) (refer announcement 23 December 2019) and while the Company secured the US$21.5m equity investment from AFC (refer announcement 10 December 2019), Mr Wage also oversaw the commencement of the development of the Project including the completion of EPCM Phases 1 and 2.
Mr Wage will support an orderly transition of his responsibilities and intends to pursue other opportunities.
Danakali Executive Chairman, Mr Seamus Cornelius said: “I am honoured to be asked by the Board to serve as Executive Chairman. I look forward to further serving our shareholders and continuing to work closely with our partners ENAMCO as we progress the Project through the final funding phase and into production, delivering long term value for all stakeholders.
“Niels’ contributions to Danakali and successes as CEO, have enabled CMSC and Danakali to progress the development of Colluli to the position it is today. On behalf of the Board, I extend my sincere thanks and gratitude to Niels for his significant contribution to Danakali during what has been an extraordinary period for the global economy. Niels’ professionalism and work ethic served the Company very well while we faced the many challenges arising from the Covid-19 pandemic and will surely stand Niels in good stead as he pursues his next opportunity. “
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