The Chinese flexed muscles after their representatives were elected into the Bindura Nickel Corporation (BNC) board at the company’s annual general meeting held yesterday.
BY TARISAI MANDIZHA
The Chinese nationals who were yesterday appointed to the BNC board are Vanessa Yam and Boajin Zhao alongside Johannes Hendrikus Lampen, Olivier Alain Barbeau and Oliver Chidawu, who was re-elected.
BNC shareholders also voted unanimously to remove James Arthur and Herman Jacobs from the board.
Barbeau was in June appointed board member of BNC parent company, Mwana Africa.
Deputy chairperson David Murangari is the acting chairperson waiting for a board meeting that would elect a substantive leader of the board.
Ngoni Kudenga and Kalaa Katema Mpinga who were up for re-election resigned last month.
Technical director Thomas Mashungupa, who was supposed to be removed at yesterday’s meeting, also resigned.
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The Chinese have of late been flexing muscles and on June 9 supported the ouster of Zimbabwean directors Herbert Mashanyare and Kudenga from the Mwana board at an extraordinary general meeting of shareholders despite proposals by then CEO Mpinga for the duo to remain on the board.
Mpinga resigned a day later.
Speaking at the AGM yesterday, Murangari said the majority of the votes were in favour of the resolutions.
Shareholders approved the increase in directors’ fees to $176 485 from $9 220 in 2014 following a proposal by the board after the appointment of new committees.
“The appointment of the new board committee results in the increase to the fees payable to the board. Shareholders are sure that this increase is a once- off increase,” Murangari said.
Shareholders also approved the remuneration for audit firm KPMG of $55 000 and the appointment of auditors to be done through a tendering process as KPMG has been with the company for so many years.
“KPMG has been with the company for a long time and the shareholders have authorised to invite tenders from the market and KPMG can also participate in the tendering process” Murangari said.
BNC posted a profit after tax of $11,1 million for the year ended March 31, 2015 down from $23,6 million in the comparable period last year.
Cost of sales during the period increased by 45% to $42,8 million attributed to investment in mobile equipment refurbishment and year-on-year salary increases, among others.
The group’s turnover surged to $78,9 million up from $65 million in the comparative period last year.
This was after a sale of 7 352 tonnes of nickel this year up from 7 129 tonnes last year, representing a 21% rise in value and 3% increase in tonnes sold respectively.
Average nickel price during the period under review stood at $16 700 per tonne, compared to $14 298 per tonne in the past year.
