Globe gets ‘first strike’ after shareholders thumb their nose at director pay
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Globe Metals & Mining shareholders have voted down the niobium explorer’s remuneration report at Wednesday’s annual general meeting.
The company (ASX:GBE) received its “first strike” after more than 25 per cent of the votes were cast against its remuneration report.
Under the “two-strikes” law, if Globe receives a no vote of 25 per cent or more against its remuneration report at next year’s AGM, shareholders can then vote to call a meeting to potentially spill the board.
Although shareholders voted against the remuneration report, the majority backed the re-election of non-executive chairperson Alice Wong and non-executive director Alex Ko.
The troubled explorer is facing legal action from members of the Kanyika Community in Malawi.
The lawsuit alleges that Globe Africa carried out exploration and mining activities on an area of its Kanyika niobium project in Malawi without honouring its compensation obligations to the Kanyika Community.
The Kanyika Community is seeking compensation and damages from the Malawi government and Globe Metals and Mining (Africa).
Globe restarted work on a feasibility study at its Kanyika project in February.
Since late 2015, the company had been looking at opportunities outside the mining sector and was particularly interested in making its foray into the agricultural and food and beverage sectors.
But a brighter outlook for niobium prompted the company to revisit its Malawi project.
Globe has been investigating its project financing, partnership and design options.
Niobium — sometimes referred to by its old US name of columbium — is a shiny metal used everything from hypoallergenic jewellery to jet engines to superconducting magnets.
Its major use — accounting for 90 per cent of world production — is in the making of high-strength, low-alloy steel (HSLA).
Ferro-niobium — an alloy of iron and niobium and the main agent used for HSLA steel — is in high demand, according to consultant Roskill.
There are only three mines in the world that make niobium as their primary product and there have been no new mines brought into production since the mid-1970s.
Globe Metals & Mining was unavailable for comment at the time of publishing.