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Golden Sibanda Senior Business Reporter
GOVERNMENT has invited Mwana Africa, led by new chairman Mr Ning Yat Hoi, for a meeting to explain controversial changes to the board as this is said to have negatively impacted progress towards compliance with Zimbabwe’s equity laws.
The London Alternative Investment Market- listed junior miner holds controlling interest in Zimbabwe-based and Africa’s only integrated nickel miner, Bindura Nickel Corporation and the country single biggest gold producer, Freda Rebecca Mine.
Youth Development, Indigenisation and Empowerment Minister Chris Mushowe during a Press briefing said that the shareholding agreement between Government and Mwana subsidiary Bindura Nickel Corporation, may not have been observed.
“With respect to Freda Rebecca gold mine, the completion and finalisation of the compliance with the Indigenisation and Economic Empowerment Act Chapter 13:14, including community share ownership trust have not been fulfilled,” he said.
Foreign-owned companies are required, except where exemption is granted, to dispose of at least 51 percent controlling shareholding to indigenous people or entities in fulfilment of Government’s policy to include local in the mainstream economy.
“The manner in which the composition of the board and management of Freda Rebeca gold mine, the largest single gold producer in the country has been changed is of concern to the Government of Zimbabwe,” Minister Mushowe added.
The minister also said that refurbishment of the smelter and refinery of BNC, which was also meant to give impetus to the Zim-Asset goals in terms of value addition and beneficiation, had been put on hold following the successful board room coup at Mwana.
“In view of the above the Government has instructed the National Indigenisation and Economic Empowerment Board to immediately invite the executive management of Mwana Africa to come and engage the Government of Zimbabwe with respect to immediate compliance with Indigenisation and Economic Empowerment (legislation),” Minister Mushowe said.
Mwana’s founding chief executive Mr Kalaa Mpinga early last month became the third director to leave the mining group shortly after a key shareholder took over as chairman.
The Alternative Investment Market-listed mining group, which has its major assets in Zimbabwe, had just booted out two Zimbabwean directors from the board.
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