Categories: Stories

Mwana Africa in tiff with Chinese partners

Mwana Africa’s fallout with its largest shareholder China International Mining Group Corporation (CIMGC) and Yat Hoi Ning, a Non-Executive Director and associate of CIMGC, over board seats could drag on to February 2016, the company said today.

The fight, which has spilled into the courts, also dampens the prospects of Mwana’s ongoing rehabilitation of its nickel business in Zimbabwe.

Mwana CEO Kalaa Mpinga heralded the 2012 Chinese investment into his company as a sign that “Mwana is really on the move,” but a dispute over board seats allocated to, among others, Zimbabwean non-executive directors and old mining hands – Herbert Mashanyare and Mwana veteran Ngoni Kudenga has brought the “exciting times” to an abrupt end.

Mwana’s romance with the Chinese started in 2012 when CIMGC came in with a $21 million investment to restart Mwana’s Bindura Nickel Corporation (BNC) which had collapsed at the height of the country’s economic meltdown.

CIMGC controls a substantial 21.4 percent stake in Mwana while Ning owns 7.6 percent giving them a combined shareholding of 29 percent.

The relationship soured last year, with CIMGC and Ning disputing the appointment of Stuart Morris, Johan Botha, Kudenga and Mashanyare as non-executive directors of the company.

CIMGC and Ning filed a petition with the High Court on December 8 2014 challenging the validity of a resolution passed at the company’s September AGM, relating to the appointment of the directors.

In a statement today, a combative Mwana Africa said it would defend its position.

“The Company’s position remains unchanged in respect of these court proceedings. Whilst it will continue to attempt to work with the Petitioners to achieve a mutually acceptable resolution to their complaints, the Company will defend its position vigorously in court if required,” the statement reads.

The company added that the initial directions were laid down for the future conduct of the petition including the setting of a trial window of 3 months from 1 November 2015 at a hearing at the Companies Court.

Meanwhile BNC, Mwana’s Zimbabwean nickel unit, traded 0.2 cents lower on the ZSE on Thursday. BNC, which opened the year at 6.5 cents closed at 5.8 cents today.- The Source

(10381 VIEWS)

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Can the ZiG sustain its rally against the US dollar?

Zimbabwe’s battered currency, the Zimbabwe Gold, which was under attack until the central bank devalued…

November 10, 2024

Will Mnangagwa go against the trend in the region?

Plans by the ruling Zimbabwe African National Union-Patriotic Front to push President Emmerson Mnangagwa to…

October 22, 2024

The Zimbabwe government and not saboteurs sabotaging ZiG

The Zimbabwe government’s insatiable demand for money to satisfy its own needs, which has exceeded…

October 20, 2024

The Zimbabwe Gold will regain its value if the government does this…

Economist Eddie Cross says the Zimbabwe Gold (ZiG) will regain its value if the government…

October 16, 2024

Is Harare the least democratic province in Zimbabwe?

Zimbabwe’s capital, Harare, which is a metropolitan province, is the least democratic province in the…

October 11, 2024

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024