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Oliver Kazunga, Senior Business Reporter
ASA Resources Group says the High Court claim by a group of local mining investors, Zindico Consortium, seeking to indigenise Freda Rebecca Gold Mine, has “no merit”.

Asa, which has 85 percent interest in Freda Rebecca, is the parent company of the Zimbabwe Stock Exchange-listed nickel producer, Bindura Nickel Corporation.

The mining group also has assets in South Africa and the Democratic Republic of Congo.

A few weeks ago, Asa Resources announced it was seeking legal advice in a matter involving the implementation of Indigenisation and Economic Empowerment Act after Zindico slapped it with a $20 million lawsuit for refusing to acknowledge a share purchase agreement signed in 2013 with Mwana Africa Plc.

Formerly Mwana Africa, Asa Resources said Tuesday that Zindico’s move to compel the mine and its partners to indigenise Freda Rebecca Gold Mine has “no merit”, Mining Weekly, an online mining magazine, reported yesterday.

“We have instructed our legal team in Zimbabwe to file opposing papers,” Asa noted, adding that mining operations at Freda Rebecca would continue as normal with no expected disruptions as a result of the claim.

“The draft agreement was apparently negotiated by Kalaa Mpinga, the then CEO of Mwana Africa, who appears never to have submitted it for approval to its board of directors,” said Asa.

It said that the claim by Zindico was based on a two-year old draft “unsigned agreement” negotiated by Mr Mpinga.

Asa further stated that even if the agreement been signed, it was still conditional to approval by the directors of Mwana Africa .

Earlier this month, the company and its Mwana Africa — Freda Rebecca Holdings, National Indigenisation and Economic Empowerment Board, and Ministry of Youth Development Indigenisation and Economic Empowerment partners, were served with a claim in the High Court of Zimbabwe by Zindico.

Our Harare Bureau recently reported that the agreement gave Zindico Consortium the right to acquire 26 percent of Freda Rebecca.

Last year, the Chinese shareholders approved a change of name of the mining group to Asa Resources before pushing out the founding chief executive, Mr Mpinga.

He was forced out of Mwana in June 2015, following a series of clashes with the Chinese majority shareholders and some minorities, a day after an extraordinary general meeting in London had also ousted his allies from the board.

Upon taking over Asa, executive chairman, Mr Yat Hoi Ning, however, professed ignorance of the agreement saying he had never heard of Zindico Consortium.

As a result, the shifting of goal posts has riled Zindico prompting them to sue the Chinese shareholders.

According to the documents seen by our Harare Bureau with details of the deal, in February 2012, Mr Mpinga formally introduced Dr Chikanza, representing Zindico, as the official indigenous partner to the Ministry of Youth, Indigenisation and Economic Empowerment.

It is said negotiations on the commercial terms, review of the various documents and the agreement that Zindico would purchase an effective 26 percent equity in Freda Rebecca were concluded and presented to authorities.

The amount to be paid by Zindico was agreed on in December 2013 and copies of the agreement were submitted to Government with the responsible ministry being notified of the position.

Media reports say Asa shareholders have refused to meet or engage Zindico to discuss the issue despite numerous attempts in this regard.
China International Mining Group Corporation came on board in 2012 after injecting $21 million in the group meant to recapitalise Mwana Africa’s Bindura Nickel Corporation.

Asa Resources remains un-indigenised and continues to hold controlling interests of 76 percent in BNC and 85 percent in Freda Rebecca Gold Mine.

@okazunga