London-based administrators Duff and Phelps have disbanded Asa Resource Plc’s existence as an entity following the disposal of the group’s
Zimbabwean assets to Sortic International, Business Times has learnt.
Formerly Mwana Africa, Asa used to own Bindura Nickel Corporation, Freda Rebecca and other assets based in the Democratic Republic of
This publication is informed that the UK based administrators have
since sold the Democratic Republic of Congo assets to another investor
while Kudakwashe Tagwireyi-linked Sortic International has concluded
the acquisition of Zimbabwe-based mines.
A well-placed source to the developments told Business Times that
Asa Resource Plc has since ceased to exist as an entity.
“Asa has been disbanded and this saw the administrators selling Asa
assets as separate entities and BNC and Freda were sold to Sortic International while the DRC assets were also sold. So there is nothing called
Asa anymore,” the source said.
Asa UK Plc was put under administration in 2017 after the mining
group was immersed in a controversy where its former top managers faced
allegations of designing an obscure web to ship out raw ore to China
and also illegally move US$4.3m out of Zimbabwe.
Chief executive Yat Hoi Ning and financial director Yim Kwan, who
was identified as the chief culprits in the scam were relieved of their duties
as investigations continue culminating the company being suspended
on London Stock Exchange and being put under administration.
Since the new holders wrestled the company from the group led by
Kalaa Mpinga, asset stripping discontinuation of development projects and allegations of corruption, alleged breach of indigenisation contracts have remained part of controversies associated with the group.
Legal challenges also dogged the group while resources were siphoned
out of the country at will by the group’s past Chinese executives.
Barry Dearing and China International Mining Group Corporation
wrestled Mwana Africa from investors led by Mpinga through a boardroom coup triggering a series of contentious decisions, some alleged to
have been designed to outwit local business systems and laws.
Since the departure of Mpinga as chief executive, the group has had
its fair share of controversies involving the Chinese shareholders China
Mining International Group’s Ning and Kwan.
At the time of Mpinga’s exit, there were development projects that were
in progress such as the smelter restart and the mine redeepening as sources
allege high grading was being undertaken, depleting the massives in the
current mine plan.