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THE National Indigenisation and Economic Empowerment Board has demanded a written explanation from Mwana Africa regarding changes to its board of directors. This follows an overhaul of the board of directors at Mwana Africa after majority shareholder, China International Mining Group, took over as board chair in July.
NIEEB chief executive Mr Wilson Gwatiringa in an interview said that they have held meetings with directors of Mwana about a number of issues at the group. As such, NIEEB has directed the multi-commodity mining group to submit written explanations about management and director changes in the group and its units.
“We are engaged with the group; we had a few meetings and await written submissions and documents to do with the company’s compliance,” he said. Mwana Africa has since appointed new directors to the pan-African mining group’s board and those of its only two producing subsidiary companies in Zimbabwe.
Founding chief executive Kalaa Mpinga, old mining hands Hebert Mashanyare and corporate executive Ngoni Kudenga were victims of the board purge. Mr Mashanyare and Mr Kudenga were shown the exit at an extraordinary general meeting called by minorities while Mr Mpinga was kicked out a day after the EGM.
Linked to that, Mwana has also been directed to provide a detailed explanation on its plans regarding compliance to indigenisation and empowerment laws. In terms of the Indigenisation and Economic Empowerment Act, foreign owned companies are compelled to shed at least 51 percent to indigenous black Zimbabweans.
Former Youth Development, Indigenisation and Empowerment Minister Chris Mushowe had earlier summoned Mwana officials to Zimbabwe over the board changes. He said he had instructed NIEEB to invite Mwana’s directors to come to Zimbabwe to engage the Government over immediate compliance with equity rules.
Minister Mushowe said there were concerns that the board changes, which also triggered a management shake-up, would affect Mwana’s indigenisation plans. He noted that completion and finalisation of compliance with equity laws and setting up of community share trusts for Freda Rebecca had not been fulfilled.
Further, he said the manner in which the composition of the board and management at the gold miner had been changed was of concern to the Government. On the other hand, the refurbishment of the smelter and refinery at BNC, to give impetus to value addition and beneficiation in line with Zim-Asset, had been put on hold.
The multi-commodity mining group, listed on the Alternative Investment Market, London, holds majority shares in Bindura Nickel Corporation and Freda Rebecca. BNC, listed on Zimbabwe Stock Exchange, is Africa’s only integrated nickel mining group while Freda Rebecca is Zimbabwe’s biggest gold mining company.
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