Mpinga falls on sword after Mwana board ouster

[miningmx.com] – KALAA Mpinga, a founding member of Mwana Africa, has resigned from the company following a board coup on June 9 which was led by the former DRDGold CEO, Mark Wellesley-Wood.

Mwana Africa said in an announcement that Mpinga had left with immediate effect although the terms of his final settlement are still to be agreed. This followed an extraordinary general meeting (EGM) in which the re-election of several directors was voted down whilst a resolution not to restructure the company was also rejected.

A day earlier, on June 8, Mwana announced that Yat Hoi Ning, had been appointed executive chairman of the company – a move that Mpinga had not supported in the past, and a sign that his 12-year time at the company was drawing to a close.

The EGM has been called by a group of shareholders holding 5.1% of the Zimbabwe gold and nickel firm calling themselves the Concerned Shareholder Group (CSG), of which Wellesley-Wood, briefly chairman of Mwana Africa, was a part.

The CSG maintained there had been significant breaches of corporate governance at Mwana Africa. It also questioned why a dispute between the Mwana board and shareholders Yat Hoi Ning and China International Mining Group Corporation regarding the constitution of the board had been taken to court.

Mpinga argued that he and the Chinese were edging to a resolution and that a suitable strategy had been formed and adopted by the board. He told Miningmx, however, that his future turned on how the Chinese would vote as a block.

Said Ning: “Mr Mpinga has been a great asset in the creation of Mwana and throughout its development to date. We wish him all the best in the future.

“With these recent changes to the board having now taken place it marks a clear new beginning for Mwana and its shareholders’.

Wellesley-Wood told Miningmx on May 21 that Mwana Africa represented unfinished business following his abrupt resignation from the board in February 2014 ostensibly related to a difference over strategy.

Said Wellesley-Wood: “This is not about revenge. This is about focusing on the company’s operations and shareholder value.

Two resolutions at the EGM – the re-election of chairman, Stuart Morris, and director, Johan Botha – were withdrawn as both had resigned earlier in the week. In addition to Wellesley-Wood, CSG members Olivier Barbeau and Scott Morrison and Anne-Marie Chidzero were appointed to the board.

Board members under Mpinga leadership – Herbert Mashanyare and Ngoni Kudenga – were voted off the board.

Memory Mataranyika reports that mining executives in Zimbabwe said Mpinga’s leadership and knowledge of Africa’s mining scene had been crucial in building up the company.

Although the board changes marked a new beginning for the company, it was not immediately clear if there is to be a change of focus and strategy for the company. The company is also in search of a CEO.

Interestingly, Wesizwe Platinum COO, Paul Smith, resigned from the Chinese owned company today and could be in the running to lead the company.