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Golden Sibanda Senior Business Reporter
MWANA Africa Plc says court proceedings in the UK to resolve a boardroom dispute over a resolution passed last year will not affect its Zimbabwe operations as there is no direct connection. The remark relates to litigation in the UK by China International Mining Group Corporation, a substantial shareholder in Mwana, and Mr Yat Hoi Ning, a Non-Executive Director and associate of CIMGC, (together the “Petitioners”) who hold 32 percent circa of Mwana Africa Plc.
CIMGC and its associate filed litigation in respect of resolution 3 passed at Mwana’s annual general meeting regarding the reappointment of a Mr Stuart Morris as a non-executive director.
As such, the Africa focused mining group said since CIMGC was an investor at the Mwana level, the ongoing court proceedings would not in any way impact on its local operations. Mwana holds 75 percent interest in Bindura Nickel Corporation and 100 percent of Freda Rebecca.
“It does not affect local operations or any agreements. BNC has a 100 percent off take with Glencore and Freda Rebecca sells all gold to Fidelity. It is business as usual at all operations,” said Mwana.
The multi-commodity miner said its nickel mining business, through Bindura Nickel Corporation, “could only be affected if our off-taker stopped buying our nickel ore, which is certainly not the case”.
Another Mwana Africa Zimbabwe unit, Freda Rebecca, sells all gold to Fidelity Printers and Refineries, the Reserve Bank of Zimbabwe owned sole authorised buyer of bullion in the country.
The group also insists that BNC was already “on the move” when CIMGC invested in Mwana because of the successful rights issues and the off take agreement signed with Glencore International.
This means, Mwana said, the litigation in the UK was unlikely to have any direct impact on operations in Zimbabwe, where Mwana Africa Plc has equity interest in both BNC and Freda Rebecca.
In addition, leave was given to the petitioners to file an amended petition to challenge the appointments of Mr Ngoni Kudenga and Mr Herbert Mashanyare as Non-Executive Directors of the Company. A hearing was conducted in the companies court last week to set directions for the petition. The companies court also set a trial window, when nothing happens, of three months starting November 1 last year.
Mwana said as previously announced on 10 September, the votes of CIMGC and associates were not counted in the poll in respect of Resolution 3 and were deemed inadmissible because the votes, as cast, infringed the Relationship Agreement entered into by CIMCG with Mwana on 2 April 2012.
“Mwana Africa’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,” Mwana said.
The group is involved in exploration, development and production of gold, nickel, copper and diamonds, has operations in Zimbabwe and South Africa and exploration projects in DRC, Angola and Botswana
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