When German-born Jew Mose Kohan was lying on his deathbed in 1964 after he had discovered zinc deposits at the place he named Rosh Pinah, he told his daughter, Diane Lidchi, that he was dying.
Lidchi remembered her father’s words years later when she fought in court to get paid for the stake in the Rosh Pinah Mine.
“Ek gaan vrek (am going to die),” Kohan said after he had brought in the South African company Iscor as a partner.
Kohan stumbled upon a zinc deposit in the Hunz Mountains in 1963. He named the place Rosh Pinah, a Hebrew term for cornerstone.
The mine near the Rosh Pinah town in the Karas region, about 800km southwest of Windhoek, sits on a 782.34ha and operates under licence 39.
For one reason or another, Kohan’s deathbed words seem to be hanging over the mine that has changed several hands in its 54 years of existence.
Rosh Pinah zinc mine is now under Appian Capital Advisory after Trevali Mining Corp suffered natural and economic headwinds in 2022.
Appian Capital acquired 89.96% of the mine for an undisclosed amount from Trevali.
Under Appian Capital Advisory, the mine will get a new logo, updated mission statement, corporate values, new colours, and a different visual identity to be unveiled on 12 December.
When Appian Capital Advisory snatched the mine, Trevali had run into problems at its mine in Burkina Faso, resulting in the Judicial Tribunal of Commerce granting an order to liquidate the company’s 90% owned Nantou Mining Burkina Faso S.A.
A flood in April 2022 at Trevali’s Perkoa Zinc Mine, which killed eight miners, triggered a series of problems that affected Rosh Pinah Zinc Mine.
Trevali had to find funding to restart operations at Perkoa Zinc Mine.
While the company was in the process, there was a coup in Burkina Faso, leaving Trevali with no choice but to seek liquidation.
The company applied to the British Columbia Supreme Court for protection from its creditors and obtained an order under the Companies’ Creditors Arrangement Act (CCAA).
“The sales and investment solicitation order, among other things, approves a sales and investment solicitation process for Trevali’s 90%-interest in the Rosh Pinah Mine and 100% interest in the Caribou Mine,” Trevali said.
In October 2022, Trevali said the Rosh Pinah mine was up for sale, and the mine’s 2.0 expansion project, announced in 2020 to increase production from 700,000 tonnes to 1,3 million tonnes annually at a total capital expenditure of US$93 million, had been suspended.
The company also said the Standard Bank of Namibia and Standard Bank of South Africa credit approval for a U$110 million senior debt facility would stay in play.
The beginning
Lidchi, through her company, Moly Copper, held her father’s stake in the Rosh Pinah zinc mine. Under the deal, Kohan struck with Iscor, whose parent company was Imcor, and Lidchi’s company, Moly Copper, 9% royalties. Iscor would have a 51% controlling stake.
Iscor found more zinc deposits in 1968, and mining started in 1969. For 23 years, the Rosh Pinah Zinc Mine, Iscor and Moly Copper had no issues until 1989, when Iscor was privatised after Imco’s liquidation. The company’s loans reached R46m in 1992.
The mine was placed under provisional liquidation and closed for four weeks in 1993 after the water and electricity were disconnected. The companies owed the South West Africa Water & Electricity N$700 000.
Lidchi took her case to the high court but lost. She, however, told the court that Iscor was cooking books to appear as if the mine was making losses. She also said Iscor would buy the mine’s assets if the court granted the liquidation order.
The court granted the order, and Iscor bought the mine’s assets for N$N$35m, including N$12m from the liquidated Rosh Pinah holding company.
Iscor scored on selling the assets but returned to a mine whose mineral rights had been handed over to P&E Minerals by the government. One of P&E Minerals’ directors was the late Aaron Mushimba, a businessman. The owners were Namibian and Malaysian businesspeople.
Andimba Toivo Ya Toivo, who headed the mines ministry, said: “I have given the rights to P&E Minerals, and that is final.”
That was in 1995.
Iscor threatened to sue the government but turned around and started talking to PE Minerals, striking a 50-50 deal on 1 December 1998.
Part of the deal stated that Iscor would run the day-to-day operation of the mine while PE Minerals was in charge of management.
Rosh Pinah’s headquarters moved from South Africa to Windhoek, too.
Inscor later said it was negotiating with Australian company Western Metals for all its shares in Rosh Pinah valued at N$151m.
Becoming Rosh Pinha Zinc Corporation
In February 1999, Iscor renamed its subsidiary Imco Zinc to Rosh Pinah Zinc Corporation. PE Minerals had shares in the Rosh Pinah Zinc Corporation.
In September 2001, Iscor agreed with the Industrial Development Corporation of South Africa Limited to transfer all its mining companies to a newly formed company, Kumba Resources. All Iscor shares in Rosh Pinah Zinc Corporation went to Kumba Resources.
In November 2006, Kumba Resources changed its name to Exxaro Resources. In June 2008, Exxaro Resources divested a 43.8% interest in Rosh Pinah to PE Minerals and the Rosh Pinah Zinc Corp. Before Exxaro decided to give away shares, the company had 93.9%, and PE Minerals 6.1%. After giving away shares, Exxaro had 50.04%, PE Minerals Namibia at 8.00%, Jaguar Investments Four at 38.99%, and Employee Empowerment Participation Scheme at 2.97%.
Jaguar Investments Four consisted of traditional authorities, communities and individuals, including employees.
Exxaro, PE Minerals and Jaguar Investments Four donated shares to an employee empowerment participation scheme.
Exxaro announced in 2011 that it was selling all its shares in Rosh Pinah to Glencore, which also acquired another 30% from the Namibian shareholders, bringing the total shares to 80.08%.
PE Minerals, Jaguar Investments Four and the Rosh Pinah employee empowerment participation scheme trust were left with 19.9%.
In 2017, Glencore sold its 80% stake to Trevali Mining Corporation for US$417,8m. Trevali also bought Glencore’s Perkoa mine in Burkina Faso.
In May 2028, Trevali increased its shareholding in Rosh Pinah to 90%.
And then Pekoa happens.
