Timeline of BNC squabbles
BINDURA Nickel Corporation is a unit of Mwana Africa, a resources company founded by DRC businessman Mr Kaala Mpinga.
Mr Mpinga - the son of Mr Kasenda Mpinga (Prime Minister of the then Zaire from 1977 to 1979 under President Mobutu Sese Seko) - left Anglo America in 2001 to found Mwana, which in his native dialect translates to “beautiful baby”, in 2003.
The company was established mainly through buying and aggregating assets previously owned by Anglo America and Ashanti Gold Fields. Its main focus was gold and nickel mining in Zimbabwe and copper assets in DRC.
In 2008, BNC’s operations were mothballed and in April 2012 China International Mining Group Company and Mr Yat Hoi Ning injected US$ 21 million into the business to restart operations at BNC. CIMGC subsequently assumed 21,4 percent shareholding, while Mr Ning held 7,6 percent. This marked the beginning of the end of Mr Mpinga’s slackening grip on his empire.
Matters between the Chinese investors, who were not happy with the CEO’s management, and Mr Mpinga came to a head last year after the appointment of non-executive directors Mr Hebert Mashanyare, Mr Ngoni Kudenga, Mr Stuart Morris (interim chair), and Mr Johan Botha - individuals who were believed to be allied to Mr Mpinga.
CIMG and Mr Ning were vehemently opposed to the appointment of the non-executive directors.
Earlier in February 2014, the group had sacked non-executive board chair Mr Mark Wellesley-Wood amid suspicion that he was an agent of a hostile takeover by Centar Mining. Mr Wellesley-Wood had been appointed in 2013.
On September 10, 2014 at the company’s AGM, Mr Stuart Morris was re-appointed non-executive director, but the Chinese investors opposed this. However, their votes were not counted as they were deemed to be in contravention of the Relationship Agreement entered into CIMG with Mwana on April 2, 2012.
On December 8, 2014, CIMGC and Mr Yat filed a High Court petition challenging the validity of the resolution appointing Mr Morris, and on May 12, 2015 Mwana announced an EGM for June 9, 2015.
The EGM, which was requisitioned by a group of shareholders led by Mr Ian Dearing, proposed the appointments of Scott Morrison, Oliver Barbeau, Anne-Marie Chidzero and Mark Wellesley-Wood as directors; and removal of Stuart Morris, Ngoni Kudenga and Hebert Mashanyare.
Bizzarely, in a separate circular to shareholders Mwana Africa called on shareholders to vote against the proposed resolutions. It also added that Johan Botha and Stuart Morris, who were also in the firing line, had indicated their desire to retire at or before the EGM.
The EGM sealed the fate of Mr Mpinga and the other targeted directors.
Mr Mpinga now controls 2,8 percent of Mwana Africa’s issued share capital directly and through Palanka Trust and Katema Mukubayi Trust. He also holds 0,06 percent of BNC.