Noranda shuffles top executives at 3 subsidiaries

In the latest move in an ongoing reorganization program designed to save cash, Noranda Minerals has appointed Ian Bayer as president and chief executive officer of 50.2% owned Hemlo Gold Mines (TSE).

Bayer, former president and chief executive officer of Noranda’s 51.3% owned Kerr Addison Mines (TSE) and subsidiary Minnova (TSE), replaces John Harvey in the new post.

According to Noranda Minerals President Alex Balogh, Bayer has been assigned to develop a growth strategy for Hemlo once it has added all of Noranda’s gold assets to a portfolio that includes the Golden Giant mine at Hemlo, Ont.

As expected, Harvey will concentrate on his responsibilities as president of Noranda Exploration while it carries out what Balogh calls “the specifics of exploration” on behalf of Hemlo Gold. Harvey, who remains a Hemlo director, will initially work closely with Bayer until he hires a vice-president of exploration and other full-time staff, Balogh says.

Still an unknown quantity in the mining industry, despite 24 years with Kerr Addison, Bayer has used his considerable business acumen to turn Minnova into a cash-rich and profitable resource concern. He is being replaced at Kerr Addison by Andre Fortier, the former senior vice-president of Noranda’s Quebec division, and at Minnova by David Watkins, Minnova’s senior vice-president. By promoting Watkins and Fortier, Noranda is paving the way for the eventual amalgamation of Minnova and Kerr Addison, according to analysts who say the decision to have two presidents operating separately removes any objections that regulatory authorities might have to a future amalgamation.

“One of the thrusts in the mineral industry is to simplify things as much as possible,” replied Balogh, when asked about the merger rumor. “But a merger is not our only option,” he said.

As demonstrated by recent stock market activity, however, Noranda’s move to reorganize Hemlo Gold and add growth potential that it lacked before is being viewed favorably by both analysts and investors. Among North America’s lowest-cost gold producers, Hemlo Gold is expected to extract 424,000 oz. gold this year from Golden Giant, its only producing asset before the shuffle was announced.