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Asa Resources Group

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Asa Resources Group PLC
Company typePublic limited company
LSEASA
IndustryMining
PredecessorMwana Africa
African Gold
FoundedSeptember 27, 1987; 37 years ago (1987-09-27) in City of London, United Kingdom
Headquarters,
Websitewww.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.

History

Beginning of the company

ASA founded in 2003 by a constortium of businesspeople, including Kalaa Katema Mpinga, David Fish, Tim Wadeson, Oliver Mandishona Chidawu and Douglas Tawanda Munetsi.[1] 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.[1]

In 2012, ASA injected $23 million into BNC, allowing it to refurbish its Trojan Mine.[1] Between 2003 and 2015, ASA loaned $11 million to Freda Rebecca Gold Mine, with ASA placed under administration in the United Kingdom.[1]

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.[2] In October 2013, Asa appointed Yim Chiu Kwan as its finance director.[3]

In 2014, Mwana Africa fired chairperson Mark Wellesley-Wood "amid suspicion he was an agent for a hostile takeover" by Centar Mining.[4] Mwana Africa in September 2015, rebranded as Asa Resources, with Mwana Africa changing their name after the exit of Mwana founder Kalaa Mpinga.[5]

2016-2018

In 2016, it owned 85% of the Freda Rebecca gold mine, based in Zimbabwe.[6]

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.[7] $4.3 million were reported unaccounted for, but the company said operations would continue.[8] It was reported that Asa was facing a hostile takeover by Rich Pro, a Chinese firm allegedly connected to the two missing executives.[9]

The company delisted in London in March 2018[10] after "delays in fixing a deep cash flow crisis."[9]

In 2018, a number of its mines were struggling with debt, with Freda Rebecca partly attributing the issue to mismanagement by ASA Resource Group.[1] Panaf was bidding to buy ASA Resource Group's assets in January 2018.[11] In December that year, it struck a deal with an unnamed company to sell its stake in BNC.[9]

2019-2020

It was working on finalizing its exit from BNC to an unnamed mining company by October 2019.[12][13]

In 2019, it was still producing gold through its Fred Rebecca gold mine in Zimbabwe.[14] 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."[15] There had also been legal battles between the boards of ASA and Freda Rebecca Holdings.[16]

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.

References

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