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Business Reporters
The Bindura Nickel Corporation board chaired by Mr David Murangari is facing an uncertain future following a board reshuffle that took place at parent Mwana Africa plc last month, a senior company official confirmed yesterday.
Mwana Africa is the parent company and holds a significant stake of 75,4 percent in BNC.
The board reshuffle at the group level saw chief executive officer Mr Kalaa Mpinga leaving after an extraordinary general meeting which also ousted two Zimbabwean board members as Chinese shareholders flexed their muscles.
Speaking at the company’s analyst briefing yesterday, BNC non-executive director Mr Muchadeyi Masunda said board changes on the subsidiary level were the cards subject to certain conditions being met.
“We want to give assurance that as the BNC board we have the moral obligation to protect the interests of the company’s stakeholders. We also have the obligation to protect the interests of the shareholders.
“There may be some changes but we hope those changes will not come just for the sake of it but should have an additional positive effect to the growth of the company,” said Mr Masunda.
“We always want to make sure that there is the right mix of skills in the board. I can say that currently we have the right mix of skills on the board. There may be board changes yes.”
Following the exit of Mr Mpinga, Mr Yat Hoi Ning, formerly Interim non-executive chairman became executive chairman for the group and Mr Scott Morrison, who was appointed as a non-executive director at the EGM became senior independent non-executive director.
BNC managing director Mr Batirai Manhando yesterday said the new Mwana board is committed to the growth of the company and has promised capex funding for ongoing projects.
The mining company is currently refurbishing its smelter at a cost of about $22 million.
“The new board of our parent company is committed to the completion of the current running projects and shareholders have promised to inject some more capex into the projects.
“Management will continue to pursue the projects to ensure growth of the company,” said Mr Manhando.
The smelter, to be completed during the first half of 2015, will offer “significant” financial and strategic benefits to BNC contributing to cash flows in 2016.
The smelter is scheduled to restart operations in the first half of 2015, if everything goes according to plan.
The London-listed group is, however in the process of engaging ZESA Holdings on the possibility of a power tariff reduction as the opening of the smelter beckons.
BNC expressed confidence that the power utility would be able to meet its requirements despite the prevailing limited capacity to meet national demand for electricity.
The mining company is in the process of making an application aimed at proposing a reduction in tariffs to $0,06 cents based on the smelter restart project.
Mr Manhando said the company expects production to remain flat during the year at about 7 000 tonnes.
Online Reporter