Long-standing Gindalbie Metals chairman George Jones will step down from the role after four years on August 31.
The company made the shock announcement in a statement early this morning, saying Mr Jones would remain a non-executive director of Gindalbie but planned to take a six-month leave of absence while he recuperates from a recent medical operation.
The veteran WA mining figure said while he was sad to relinquish the role, it was with a sense of "great satisfaction that Gindalbie (is) now firmly established on a path to build a leading Australian iron ore company with a very strong growth future", after the completion this week of its $162 million share placement to Ansteel.
"Our strategy is firmly in place, we have a world-class asset in the Karara Project, we have a strong partnership with Ansteel, we have funding solutions in place, and we have recently secured key approvals which should see us commence construction later this year," he said.
"I am particularly optimistic about the future of the junior iron ore sector subsequent to the merger of the BHP and Rio Tinto iron ore interests."
The board said existing non-executive director Geoff Wedlock, who joined the board last year, would step into the chairmanship.
"Mr Wedlock is a highly experienced mining executive with more than 40 years experience who has had a long association with Mr Jones and with Ansteel," managing director Garret Dixon said.
Mr Wedlock said: "George has put Gindalbie in a formidable position and I look forward to continuing with the firm strategy Gindalbie has in place. I look forward to driving Gindalbie through the construction phase of Karara and the many opportunities beyond that for us to grow into a strong and sizeable company."
Mr Jones has been an outspoken supporter of Chinese investment in Australian mining projects, and is regarded as one of the most respected iron ore figures in iron ore in WA.
Mr Jones also confirmed he would step down as chairman from Sundance Resources, with Mr Wedlock to take his place from August 31.
RACHEL DONKIN
