The Aditya Birla Group has decided to appoint a new CEO and Managing Director for Aditya Birla Minerals Ltd (ABM), the group’s troubled copper miner in Australia.

Neela Madhab Patanaik will replace Sunil Kulwal, whose extended tenure as CEO and MD expires on December 31.

The company faced serious setbacks this year after its Nifty mine in Western Australia developed a major sinkhole in March.

The State Government of Western Australia had ordered stoppage of work at the mine immediately after the incident, and allowed it to resume mining in July.

The mine’s insurer has denied compensation for the loss citing that the land and mine workings were not part of the coverage.

“Certain exclusions under the policy apply to the circumstances surrounding the incident,” the company told the Australian Stock Exchange.

ABM supplies copper ore to Hindalco’s refinery at Dahej in Gujarat.

Patnaik, who heads the $4 billion procurements of the Hindalco, “demonstrates a strong ‘can-do’ attitude, bias for action and excellent networking skills with a proven track record of delivering stretched targets against significant odd,” said ABM.

The 2.3 million tonnes a year Nifty, acquired in 2003, has seen 41 per cent reduction in grade and consequent rise in cost.

After resumption, operations at Nifty are currently running at a lower rate of around 120 kilo tonnes a month. The miner plans to take it up to around 160 kilo tonnes a month gradually.

Meanwhile, during the work stoppage period, Nifty has shed 26 per cent, or 106 people, from its workforce through voluntary redundancy.

ABM’s other mine at Mount Gordon in Queensland is non-operational since April 2013 and needs strategic inputs to resume operations.

In 2013-14, the company earned a revenue worth A$315 million ($280 million).

For 2012-13 and 2013-14, ABM did not pay any dividend.

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