Asa Resources Group

Last updated
Asa Resources Group PLC
Type Public limited company
AIM: ASA (until 2018) [1]
Industry Mining
PredecessorMwana Africa
African Gold
FoundedSeptember 27, 1987;36 years ago (1987-09-27) in City of London, United Kingdom
Headquarters
City of London
,
United Kingdom
Website www.asaukplc.com

Asa Resources Group is a mining company based in Johannesburg and London. According to the company's website, it is the first African-owned and African-managed business to be listed in the Resources sector of the London Stock Exchange's Alternative Investment Market. Asa was founded in 1987.

Contents

History

2003-2015: Beginning of the company

ASA founded in 2003 by a consortium of businesspeople, including Kalaa Katema Mpinga, David Fish, Tim Wadeson, Oliver Mandishona Chidawu and Douglas Tawanda Munetsi. [2] Then Mwana Africa, in 2003 ASA became the majority shareholder in Bindura Nickel Corporation after acquiring it from Anglo American Corporation. The following year, it acquired the majority share in Freda Rebecca Gold Mine. [2] It is based in the United Kingdom. [3]

China International Mining Group Corporation (CIMGC) became an ASA shareholder in 2012 when it injected $21 million into restarting Bindura Nickel Corporation (BNC). [4] In 2012, ASA injected $23 million into BNC, allowing it to refurbish its Trojan Mine. [2] Between 2003 and 2015, ASA loaned $11 million to Freda Rebecca Gold Mine, with ASA placed under administration in the United Kingdom. [2] The firm had a poor financial performance in 2013, with losses totaling $42.5 million, more than $35 million more than the previous year. This was due to a $43.7 million impairment charge for its Bindura Nickel Corporation (BNC) operations in Zimbabwe. [5] In October 2013, Asa appointed Yim Chiu Kwan as its finance director. [6]

In 2014, Mwana Africa fired chairperson Mark Wellesley-Wood "amid suspicion he was an agent for a hostile takeover" by Centar Mining. [7] Mwana Africa in September 2015, rebranded as Asa Resources, with Mwana Africa changing their name after the exit of Mwana founder Kalaa Mpinga. [4] Mawana acquired BNC in 2015. [3]

2016-2018

In 2016, it owned 85% of the Freda Rebecca gold mine, based in Zimbabwe. [8] ASA between 2015 and April 2017 was accused of mismanagement due to the dominance of its shareholder China International Group Corporation. [9] In Zimbabwe, there were disputes between Freda Rebecca Gold Mine employees and Asa Resources over salary drops and management changes, with workers giving notice of intention to strike. [10]

In April 2017, ASA chairman and CEO Yat Hoi Nang was fired over allegations of fraud. He had been appointed executive chairman in mid-2015. [11] In July 2017 as well, ASA's shares on the London exchange were suspended, after alleged improper accounting of assets among subsidiaries. [12]

In 2017, a manhunt was triggered by Zimbabwean authorities for two former ASA Resource Group executives, over allegations of fraud. At the time, the former CEO and finance director had been missing for several months. [13] $4.3 million were reported unaccounted for, but the company said operations would continue. [14] It was reported that Asa was facing a hostile takeover by Rich Pro, a Chinese firm allegedly connected to the two missing executives. [15] The Rich Pro bid had been criticised by shareholders for being too low. [13]

In February 2018, 10 firms under ASA Resources Group were "seeking to be placed under provisional judicial management citing viability challenges," including Freda Rebecca Holdings, Hunter’s Road Nickel Mine, Trojan Nickel Mine, BSR Limited, Greenline Enterprises, ASA Services Zimbabwe, Bindura Estates and Mwana Properties. [9] The company delisted in London in March 2018 [12] after "delays in fixing a deep cash flow crisis." [15] At the time, David Murangari was head of the board, while Toindepi Muganyi was interim CEO. [12]

In 2018, a number of its mines were struggling with debt, with Freda Rebecca partly attributing the issue to mismanagement by ASA Resource Group. [2] Panaf was bidding to buy ASA Resource Group's assets in January 2018. [16] In December that year, it struck a deal with an unnamed company to sell its stake in BNC. [15]

2019-2020

In 2019, ASA Resources in Zimbabwe included its two major mines and an agribusiness venture. [3] It also had diamond operations in South Africa and copper in the Congo. Further assets included a nickel mine in Botswana and a base metal exploration in the Democratic Republic of Congo. [3]

It was working on finalizing its exit from BNC to an unnamed mining company by October 2019. [11] [3] At the time, ASA Resource group was struggling to pay creditors. [11]

In 2019, it was still producing gold through its Fred Rebecca gold mine in Zimbabwe. [17] The mine was debt-ridden at the time, with Freda Rebecca Gold Mine and nine other gold mining firms under ASA Resources Group "seeking to be placed under provisional judicial management citing viability challenges." [9] There had also been legal battles between the boards of ASA and Freda Rebecca Holdings. [18]

The sale of BNC was finalized in October 2019, with some technical hurdles remaining. [3] At the time, BNC had halted its smelter construction project, and was entirely focused on its "shaft deepening project." [3]

Operations

Asa's products include gold, nickel, copper, zinc, cobalt and, more recently, diamonds and petroleum. Major mining operation interests as of 2007:

By country

Companies

Asa maintains a corporate office in South Africa. The company is expanding its operations by acquiring extant mining companies.

Related Research Articles

BNC may refer to:

AngloGold Ashanti Limited is an independent and global gold mining company with a diverse high-quality portfolio of cooperation, projects and exploration activities formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation. As of 2022, it was a global gold producer with 21 operations on four continents, listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses, but left the Johannesburg exchange in 2023. As of May 2023, it was the world’s fourth-largest gold miner with assets in Ghana, Australia, the US and Argentina.

Bindura is a town in the province of Mashonaland Central province, Zimbabwe. It is located in the Mazowe Valley about 88 km north-east of Harare. According to the 1982 Population Census, the town had a population of 18,243. This rose to 21,167 in the 1992 census and in the 2012 census it had reached 46,275. It is the administrative capital of the province. Bindura Nickel, now called Trojan Nickel Mine, a subsidiary of Mwana Africa plc, mines nickel, copper and cobalt in the area and operates a smelter refinery just south of the town. Cotton and maize are grown intensely in the region. The first basic school in Bindura opened in 1912.

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Bindura Nickel Corporation (BNC) is a mining company based in Zimbabwe's Mashonaland Central.

The mining industry of Botswana has dominated the national economy of Botswana since the 1970s. Diamond has been the leading component of the mineral sector since large-scale diamond production began in 1972 by Debswana. Most of Botswana's diamond production is of gem quality, resulting in the country's position as the world's leading producer of diamond by value. Copper, gold, nickel, coal and soda ash production also has held significant, though smaller, roles in the economy.

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References

  1. ↑ "ASA Resources delists from London". eBusiness Weekly. 2018-03-06. Retrieved 2022-10-10.
  2. 1 2 3 4 5 "Mines reel under $31m debt", Charles Laiton, The Independent (February 23, 2018)
  3. 1 2 3 4 5 6 7 "ASA Resources nears BNC exit", Tawanda Musarurwa, The Herald (October 30, 2019)
  4. 1 2 Independent, The (2015-09-30). "Mwana Africa rebrands to Asa Resources". The Zimbabwe Independent. Archived from the original on 2021-09-25. Retrieved 2022-10-10.{{cite web}}: CS1 maint: unfit URL (link)
  5. ↑ Mwana widens FY loss after $43.7m BNC impairment charge, South Africa: Mining Weekly, 2013
  6. ↑ Mwana Africa appoints Yim Chiu Kwan as finance director, International: Reuters, 2013
  7. ↑ "Mwana Africa sacks chairman", The Herald (February 26, 2014)
  8. ↑ "Changes at Asa Resources", Mining Journal (December 16, 2016)
  9. 1 2 3 "Debt-ridden Freda Rebecca Mine applies for judicial management", Nehanda Radio (February 24, 2018)
  10. ↑ "Freda Rebecca, workers in wrangle", The Herald (April 5, 2017)
  11. 1 2 3 "ASA Resources nears BNC exit", Zimbabwe Situation (October 31, 2019)
  12. 1 2 3 "ASA Resources delists from London", Tawanda Musarurwa, eBusinessWeekly (March 6, 2018)
  13. 1 2 "Missing ASA Resource Group bosses in £3,2m mining scandal", Nehanda Radio (December 29, 2017)
  14. ↑ "ASA Resources says $4.3m unaccounted for, but operations continue", Megan Van Wyngaardt, Mining Weekly (April 19, 2017)
  15. 1 2 3 "UK firm strikes deal to take over Zim nickel producer BNC", The Zimbabwe Mail (December 20, 2018)
  16. ↑ "Panaf revealed as mystery bidder for stricken ASA Resource Group", David McKay, Miningmx (January 29, 2018)
  17. ↑ "Production resumes at three Zim gold mines as more feared dead", Tawanda Karombo, iol (February 15, 2019)
  18. ↑ "Musanhi, Freda battle escalates", The Herald (October 24, 2017)
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