Bid to unseat Bowen Coking Coal directors

Swiss-based investor iolite Partners is pushing for Nick Jorss and Neville Sneddon to be removed from their positions as company directors with Queensland miner Bowen Coking Coal. Bowen Coking Coal is calling a general meeting, as required, after receiving notice under section 249D of the Corporations Act from iolite Partners. Bowen's assets include the Burton Mine Complex near Moranbah - including the Ellensfield South and Broadmeadow East mines - as well as Bluff, near Blackwater, which is in care and maintenance mode. In an announcement to the ASX, Bowen Coking Coal said the board and management team were united in seeking to restore shareholder value, describing iolite's 'opportunistic approach to disrupt that' as an unhelpful distraction. The meeting to be called will consider resolutions to remove long-standing directors Mr Jorss (the company's executive chairman) and Mr Sneddon (a non-executive director) and to appoint iolite Capital Management managing director Robert Lietz as a director of the company. iolite Capital Management manages iolite Partners, which holds 5 per cent of the ordinary shares of Bowen Coking Coal. In a letter to shareholders, Mr Lietz said deep concerns about Bowen Coking Coal's performance and governance compelled him to strongly urge a vote for change by replacing the two longest-serving directors. "Despite a recent quarterly management report asserting that BCB is in its 'best operational position', the company still reported negative cash flow of A$17.7 million for the quarter, even with stable production volumes and high coal prices," he said. A decisive break from the past was necessary to restore faith in the company’s leadership and move forward, he said. In a statement this week, executive chairman Nick Jorss said the board and senior management had been in regular dialogue with the shareholder, and he had been clearly advised that the matters raised were best dealt with at the upcoming AGM. "It’s unfortunate that he has chosen to proceed in this manner," he said. "Bowen has weathered a number of storms in recent times and the board and management of Bowen Coking Coal stand united and positive about the company’s operational status and future. We appreciate the ongoing support of our important employees, customers, financiers and other shareholders to realise the outcomes we all seek.” He said the move by iolite had come just as the Burton mine had achieved operational steady state, hitting production records, and the team was motivated and working hard to rebuild shareholder value.

Bid to unseat Bowen Coking Coal directors

Industry Queensland

Related News

Mount Isa in the mix for battery anode materials plant

Smooth running at Canyon-1H after bumpy start

Different standards add risk to contractor safety

Get access to breaking mining news, now.