Asa woes mount ASA’s local operations, Bindura Nickel Corporation and Freda Rebecca Gold Mine, will not be affected by the administration
ASA’s local operations, Bindura Nickel Corporation and Freda Rebecca Gold Mine, will not be affected by the administration

ASA’s local operations, Bindura Nickel Corporation and Freda Rebecca Gold Mine, will not be affected by the administration

Africa Moyo Business Reporter
CASH-strapped Asa Resource Group Plc has opted to go into administration to give it time to sort out its managerial and financial challenges. Asa, whose problems are mounting by the day after its shares were suspended from trading on the AIM market of the London Stock Exchange on July 28, has appointed Mr Mark Skelton and Trevor Birch of Duff & Phelps Limited in London, to act as administrators of the company.

The company controls the majority of shares in Bindura Nickel Corporation and Freda Rebecca Gold Mine, and it says the administration would not affect operations at the two mines.

Given the financial challenges faced by Asa since it was taken over by Chinese investors in 2015, an offer to the miner’s shareholders was made for the purchase of their shares by Richpro Investments Limited, a BVI company owned and controlled by Mr Feng Hailiang.

Mr Hailiang is a Chinese industrialist, whose net worth is estimated by Forbes at $2,4 billion.

He chairs the Zhejiang-based Hailiang Group whose businesses interests include copper smelting, real estate, education and agribusiness.

However, his offer was not recommended by the directors of Asa Resource Group Plc, amid fears that Mr Hailiang was fronting for Messrs Yat Hoi Ning and Yim Kwan, who were fired for allegedly running down Freda Rebecca and salting away $4 million.

Asa company secretary Mr Barry Dearing told The Herald Business yesterday that while the directors of Asa recognised that their duty was to the creditors of the company, they were also aware of their responsibilities to all other stakeholders, including employees.

Speaking after the appointment of administrators was announced Asa company secretary Mr Barry Dearing, who was involved in the investigations which led to the sacking of Messrs Ning and Kwan, said: “The Board of Asa did not receive the level of assurances which they sought from Richpro as to the involvement of Messrs Ning and Kwan in the future operations of the group nor the certainty of the immediate short-term future of either Trojan mine or Freda Rebecca gold mine.

“We gave these matters long and serious consideration, took proper advice and determined upon a course of action which we feel will give the greatest protection to the greatest number of interests. We think that time will enable the cash problems at PLC level, caused by what we consider to be mismanagement by Messrs Ning, Kwan and their appointees, to be resolved and administration provides this time.”

Messrs Ning and Yim Kwan were chief executive and finance director respectively.

Mr Dearing said senior managers in Zimbabwe are making great strides towards improving mining operations and the board is keen to permit the steps implemented in April to bear fruit.

Asa shareholders insist they have confidence in the workforce and management to turnaround operations at the mines.

While Asa says it is facing financial difficulties, its liabilities are not exceeding the value of assets.

The administrators are expected to conduct investigations into a number of matters before submitting their findings “in due course”, as required by United Kingdom law.

Other officials who were fired from Freda Rebecca for fomenting divisions and perpetrating corporate governance deficits are Mr Edmund Zhang (former chief procurement officer) and Mr Yuan Hu Ching (non-executive director). Mr Yuan was an appointee of China International Mining Group Corporation (CIMGC) in the board.

CIMGC bought 16,2 percent of Mwana Africa in April 2012, and Mr Yat holds 7,6 percent of the mining concern.

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