eBusiness Weekly
Tawanda Musarurwa
Six months after Bindura Nickel Corporation (BNC) terminated plans for its disposal to a “United Kingdom-based nickel company with complementary interests in Southern Africa” the firm says it is again on the market.
But this time to a local mining group.
The nickel producer says its parent group, ASA Resources, had entered into a deal for it’s the disposal of its majority stake in the company.
“The ultimate holding company of BNC, ASA Resource Group Plc (currently under Administration), has entered into a Sale and Purchase Agreement with a third party in relation to the 74,73 percent shareholding in BNC,” said the firm in a cautionary statement.
“The third party is a Zimbabwean-based mining entity with interests in the mining and production of ferrous metals, non-ferrous metals and precious metals.”
This is the latest, in a series of attempts by ASA Resources to sell off the nickel producer, which it acquired in 2015.
ASA Resources’ assets in Zimbabwe include Bindura Nickel Corporation, Freda Rebecca Gold Mine and an agribusiness venture.
It also has copper and diamond operations in Congo and South Africa, respectively, as well as another nickel mine in Botswana and a base metal exploration in the Democratic Republic of Congo (DRC).
Throughout 2018, an unnamed third party was said to be a United Kingdom-based nickel producer with complementary interests in Southern Africa.
BNC’s problems worsened after allegations of financial impropriety arose around the parent firm’s directors.
ASA chairman and CEO Yat Hoi Ning was sacked from ASA in April 2017 following allegations of fraud, of figures ranging between $4 million and $15 million related to subsidiary gold producer Freda-Rebecca.
Ning was appointed executive chairman of ASA Resources mid-2015 after the following rancorous removal of founder and then CEO of Mwana Africa, Kalaa Mpinga.
Also sacked at the time was BNC chairman Yim Kwan and Freda Rebecca financial controller Roy Shum.
The ASA Resource group has been struggling to pay creditors when debts fall due, indicative of problems lying deeper than the on-going shareholder spats.
BNC recently released its results for the year ended March 31, 2019, which highlighted lower nickel production, depleted nickel concentrate, declining head grade, a fall in its non-current liabilities, a drop in current assets and shrinkage in gross profit among other factors.
The nickel producer, however, sits on over 400 000 tonnes of nickel reserves.
Meanwhile, BNC has said its US$20 million smelter project is on hold due to weak nickel prices.
