Business / Companies
Zimbabwe summons Mwana Africa over indigenisation
16 Jul 2015 at 21:27hrs | Views
Government will summon Mwana Africa's management to Zimbabwe, amid concerns that the country's indigenisation legislation has been violated during changes at the mining company.
Changes in board and management composition at the London Stock Exchange (LSE)-listed firm have raised government concern.
Mwana Africa is the holding company of Bindura Nickel Corporation and Freda Rebecca Mine.
The Minister of Youth Development, Indeginisation and Economic Empowerment, Chris Mushowe said the changes have negative implications on progress made in complying with the indigenisation policy while refurbishment of a smelter and refinery have been stopped.
"The government noted the following: the shareholding agreements between the government of Zimbabwe and the owners of BNC may not have been observed. With respect to Freda Rebecca gold mine, the completion and finalisation of their compliance with the Indigenisation and Economic Empowerment Act 14:33 including the community share ownership trust have not been fulfilled. The manner in which the composition of the board and management of Freda Rebecca gold mine, the largest single gold producer in the country, is of concern to the government of Zimbabwe," said Mushowe.
The minster has since instructed the National Indigenisation and Economic Empowerment Board (NIEEB) to invite Mwana Africa's executive management to Zimbabwe for dialogue.
Zimbabwean board members, Ngoni Kudenga and Herbert Mashanyare were last month ejected from Mwana Africa's board of directors at its extraordinary general meeting in London.
Scott Morrison, Mark Wellesley-Wood, Oliver Barbeau and Anne-Marie Chidzero were appointed non-executive directors in place of Kudenga and Mashanyare, and two other board members who quit.
China International Mining Group Corporation (CIMGC) and Yat Hoi Ning, a non-executive director and associate of CIMGC are the largest shareholders of Mwana Africa, controlling a combined shareholding of 29 percent.
Changes in board and management composition at the London Stock Exchange (LSE)-listed firm have raised government concern.
Mwana Africa is the holding company of Bindura Nickel Corporation and Freda Rebecca Mine.
The Minister of Youth Development, Indeginisation and Economic Empowerment, Chris Mushowe said the changes have negative implications on progress made in complying with the indigenisation policy while refurbishment of a smelter and refinery have been stopped.
"The government noted the following: the shareholding agreements between the government of Zimbabwe and the owners of BNC may not have been observed. With respect to Freda Rebecca gold mine, the completion and finalisation of their compliance with the Indigenisation and Economic Empowerment Act 14:33 including the community share ownership trust have not been fulfilled. The manner in which the composition of the board and management of Freda Rebecca gold mine, the largest single gold producer in the country, is of concern to the government of Zimbabwe," said Mushowe.
The minster has since instructed the National Indigenisation and Economic Empowerment Board (NIEEB) to invite Mwana Africa's executive management to Zimbabwe for dialogue.
Zimbabwean board members, Ngoni Kudenga and Herbert Mashanyare were last month ejected from Mwana Africa's board of directors at its extraordinary general meeting in London.
Scott Morrison, Mark Wellesley-Wood, Oliver Barbeau and Anne-Marie Chidzero were appointed non-executive directors in place of Kudenga and Mashanyare, and two other board members who quit.
China International Mining Group Corporation (CIMGC) and Yat Hoi Ning, a non-executive director and associate of CIMGC are the largest shareholders of Mwana Africa, controlling a combined shareholding of 29 percent.
Source - zbc
