Wires

UPDATE 1-ENRC to consider strengthening chairman's hand-source

* Board to consider proposal for executive, full-timechairman

* Proposed change supported by chief executive-source * ENRC battling tarnished corporate governance reputation(Adds details, background) By Clara Ferreira-Marques

LONDON, Oct 9 (Reuters) - Kazakh miner ENRC ,battling to shake off a reputation tainted by a corporategovernance storm last year, could beef up the role of itschairman as part of efforts to overhaul the group, a sourcefamiliar with the matter said.

Under a proposal to be put to the board, the position ofbanker Mehmet Dalman would be strengthened by making him afull-time, executive chairman, the source said.

It was not clear when the board would consider the change,but a decision could come within days, the source said.

Under Dalman, a former investment banker and independentdirector on the miner's board who became chairman earlier thisyear, ENRC has promised a simpler and more transparentstructure, and is pushing ahead with internal investigationsinto whistleblower allegations of corruption.

The group, which is controlled by its founders, has alreadycompleted a probe into allegations around its Kazakh businessand has presented the results verbally to UK regulators.

It is still working on a separate probe into itsinternational business. This could is expected to include copperdeals in Congo which have attracted criticism from transparencyand anti-corruption campaigners.

The source said the change was supported by Chief ExecutiveFelix Vulis.

It is unclear, however, how the strengthened chairman's rolewould change the working relationship between Dalman and Vulis,and what responsibilities Dalman could take on, at the expenseof his chief executive.

Vulis has been expected to be left to focus on operationalmatters, with Dalman taking on issues like compliance andconcentrating on the broader company overhaul.

Vulis stepped down from the chief executive's role earlylast year over what sources familiar with the matter said laterwas a disagreement with the then-chairman, Dalman's predecessor.

Following a governance review later in the year, he agreedto stay in the role and the chairman was replaced.

The proposed change to Dalman's role, likely to revivedebate over governance at ENRC, has already attracted criticism.

Board member Paul Judge said in an email leaked to the DailyTelegraph newspaper on Tuesday that debating the change at aFriday board meeting at which neither he nor Vulis were present"smacks more of a lynch mob than of proper governance".

ENRC declined to comment.

(Reporting by Clara Ferreira-Marques; Editing by Sinead Cruiseand David Cowell)

((clara.ferreira-marques@thomsonreuters.com)(+44 207 5423214)(Reuters Messaging:clara.ferreira-marques.thomsonreuters.com@reuters.net))

Keywords: ENRC/