Maravi

(HERALD) BNC to open new mine

BNC to open new mine
Business Reporter

BINDURA Nickel Corporation will begin exploitation of nickel at its US$100 million Hunter’s Road project in the next three months, "if things go according to plan". Chairman Mr Kalaa Mpinga told a mining conference in South Africa recently that the firm’s fledgling Zimbabwe nickel project was expected to produce 2 500 tonnes of nickel by the end of 2008. This was in sharp contrast to his remarks as reflected in BNC’s financial results two weeks ago in which he suggested a feasibility study was still to be completed.

BNC chief executive Mr David Murangari echoed Mr Mpinga’s remarks.

"We are anticipating to start production in the next three months that is if things go ahead as planned," said Mr Murangari in an interview yesterday. "We are certainly trying to move ahead with this project."

The Hunter’s Road project involves the construction of a new open-cast mine between Kwekwe and Gweru where at least 30 million tonnes of nickel deposits containing 125 000 tonnes of recoverable nickel were discovered.

According to feasibility studies conducted so far, the site has the potential to "build and operate" a viable mine.

While Hunter’s Road deposits are of marginal ore grade, they have the potential to supply additional feedstock to the BNC smelter and refinery.

BNC’s two operational mines — Trojan and Shangani — are unable to produce sufficient ore to keep the plant running at full capacity.

The nickel mining giant says although some of the shortfalls are currently filled from external toll contracts, it is more economical for BNC to produce concentrate from its own mines.

This makes the Hunter’s Road more attractive to Bindura and its major shareholder, Mwana Africa.

The international prices for nickel are hovering at around US$50 000 per tonne, slightly down from the May record level of US$54 000 per tonne.

Mr Mpinga also projected Mwana Africa’s gold mining operation in Zimbabwe, Freda Rebecca, would double the 2007 gold output target to 90 000 ounces despite challenges facing Zimbabwe’s gold producers.

The Chamber of Mines last week said gold companies were in dire straits due to severe power cuts and late payments by the Reserve Bank, the sole authorised buyer of the yellow metal.

Last month, the chamber projected that the 2007 gold output was likely to decline by 23 percent from the 11 tonnes produced in 2006 to around eight tonnes.

Labels: MINING, NICKEL, ZIMBABWE

posted by MrK @ 12:13 AM