Munali Nickel agrees to review mining methods
By Gift Chanda
Tue 27 Aug. 2013, 14:00 CAT
MUNALI Nickel Mine has agreed to review its mining method to optimise profits, says mines minister Christopher Yaluma.
The country's sole nickel mine, which is scheduled to resume operations soon, was seeking ways of reducing costs after it identified complexities in tapping the ore body using its old mining methods, Yaluma said in an interview.
He explained that the mining methods which initially were being applied at the mine were wrong.
"They were wrong compared to the formation of the core ore and it was not only costly but very difficult to extract and produce as much nickel as possible to meet the targets in the initial business plan," Yaluma said.
"But other methodologies of mining will be applied once operations resumes."
Independent consultants were recently sought by Mazabuka's Munali Nickel Mine to look into the mining methods, design of the mine as well as other operational difficulties.
Underground operations at the mine have been suspended since November 2011 due to cash-flow problems caused by the low global nickel prices and operational disruptions.
Operations were halted in June 2011 after a sink hole emerged due to the mining method.
Yaluma said China's Jinchuan Mining Group, which pulled out of Munali Mine last year following a fall in metal prices, has returned and was likely to inject capital to resume output.
In 2010, Jinchuan helped revive Munali, which first halted operations in mid-2008, with an investment of about U $37 million.
Labels: MUNALI NICKEL MINE, NICKEL
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COMMENT - This is not good. The Zimbabwean government should immediately squash this deal. The CEO of Glencore is a convicted criminal, who has been caught stealing hundreds of million of US dollas from the Zambian taxpayer.
Bindura Nickel, Glencore sign pact
Monday, 07 February 2011 22:30 Business
BINDURA Nickel Corporation has signed an output off-take agreement with Glencore International AG, one of the biggest commodities traders in the world. The Bindura Nickel Corporation is majority owned by multi-commodity resources firm Mwana Africa plc.
According to Mwana Africa the agreement will cover all the nickel concentrate to be produced following the resumption of operations at the Trojan Mine. The company says regulatory approvals in Zimbabwe have been received for the agreement.
In terms of the agreement, BNC will sell all nickel concentrate produced at Trojan to Glencore until the Bindura smelter and refinery are back on stream. Glencore will pay BNC an LME-linked price on agreed terms for final contained nickel.
Mwana said once financing has been secured, BNC expects to restart mining at Trojan, initially at a rate of 10 000tpm ramping up to 70 000tpm over 12 months.
Once steady production is achieved, BNC expects to mine about 870 000 tonnes of ore per year.
“After processing, BNC expects to produce concentrate containing 7 000 tonnes nickel per year at steady state,” said Mwana.
An earlier review by Mwana in the second half of last year certified that the mine had 3,5 million tonnes of ore and demonstrated the potential to increase resources.
Mwana Africa chief executive Mr Kalaa Mpinga said the output off-take arrangement was a key step in the re-commencement of operations at BNC.
“The off-take agreement with Glencore is a very significant step toward the restart of operations at the Trojan Mine and, in due course, unlocking the unique potential of Bindura’s other nickel assets.
“We look forward to working with Glencore to deliver long-term shareholder value following their restart,” he said.
In September 2 600 ounces were produced, exceeding the Phase 1 production target rate of 30 000 ounces per annum.
In March last year, Mwana had said it was looking to restart some operations at its Bindura Nickels Trojan Mine in six to seven months.
However, the restart of Bindura, which is estimated at a value of US$26 million, has been constrained by a lack of working capital.
Loan finance of an estimated US$10 million, from the Industrial Development Corporation of South Africa remains undrawn pending completion of final conditions to allow drawdown.
Trojan Nickel Mine is located at the BNC operations in Bindura in Mashonaland Central, 100km northeast of Harare.
Labels: GLENCORE INTERNATIONAL AG, NICKEL
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Chinese firm takes over Zambia nickel mine in Aug
Written by LUSAKA (Reuters)
Thursday, July 30, 2009 5:50:58 PM
China's largest nickel producer Jinchuan Group Ltd. will take over Zambia's sole nickel mine Munali next month after the operations were suspended in March due to low nickel prices, the mines minister said on Wednesday.
"Jinchuan will become the majority shareholders with above 70 percent of the shares," Maxwell Mwale told Reuters in an interview.
"Officials from Jinchuan will be coming to Zambia next week to finalise the take over arrangements and we are hoping that they will take possession of the mine by the end of August."
Production at Munali was targeted at 10,000 tonnes of nickel per year.
Nickel prices on the London Metal Exchange had fallen more than 80 percent to below $10,000 a tonne by the time the mine suspended operations, from a record high of $51,800 in May 2007 as demand from stainless steel producers slumped due to the global downturn. Prices have since ticked up.
Labels: CHINA, JINCHUAN, MUNALI NICKEL MINE, NICKEL
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Uncertainity surrounds Munali Nickel mine’s future
Written by Chiwoyu Sinyangwe and Nchima Nchito Jr
Saturday, February 28, 2009 9:22:37 AM
THE future of Munali Nickel mine in Mazabuka is uncertain after a planned US $26 million (about K 145 billion) funding injection from a United States (US) private investment fund failed to come through.
Munali Nickel mine is the country's inaugural and sole nickel mine which is operated by Perth based Albidon Mines Limited that was hoping to secure financing from private investment fund.
Shares in the company had been placed in a trading halt while the board works to cradle an alternative fundraising proposal, which the company said was at an advanced stage of negotiation.
And according to the statement by Albidon to the Australian Securities Exchange, the funding was necessary for the company to continue operating.
“The company announced last month that US private investment fund Pacific Road Resources Funds would kick in US $26 million via convertible notes for working capital and to help the company ramp up to full production at its Munali nickel project in Zambia,” the statement read in part.
Albidon has been a victim of the tumbling nickel prices, commissioning delays at the mine and a tighter investment market in the resources industry.
In December, the company was forced to axe more than 40 per cent of its workforce and close its Cape Town exploration office.
Its share price has taken a massive dive having traded above US $5 less than a year ago to its current level of 7.2 cents.
And Albidon Limited has revealed that production at its Munali Nickel project for the December 2008 quarter was below forecast when it mined around 85,562 tonnes of nickel. It projected a production of around 115,000 tonnes for the period under review.
In a Business update, the company stated that it was looking at measures to ensure profitability.
“The company is pursuing a number of corporate options to strengthen its balance sheet and provide working capital. These negotiations are at an advanced stage but the outcome is not yet certain,” Albidon stated.
The company further stated that it was in discussions with Jinchuan - a Chinese company that purchases the nickel produced from the Munali project - and other stakeholders over the performance of the mine.
“Ongoing discussions with key stakeholders including contractors, suppliers, lenders, Jinchuan, the Zambian government, local community and major shareholders are being held,” it stated.
Albidon added that Jinchuan had been advised of the reduced nickel off-take, particularly in 2009, and the need to waive certain minimum delivery obligations by the company.
“Senior and subordinated lenders have been briefed. The result of the revised mine plans is that the company will be in breach of its loan covenants and therefore waivers and concessions have been requested. Our lenders are in the process of assessing the impact of the revised mine plan and while expressing willingness to work with the company, they are reserving their right,” it stated.
Albidon also revealed that meetings had been held with the Zambian government aimed at providing assistance to the Munali project.
And Albidon stated that further restructuring of the Munali nickel project operations targeting significant cost reductions would be undertaken in order to render the project a viable concern at current nickel prices.
“This includes assessing the option to cease stopping operations during 2009 and to only mine and process development ore on a campaign basis. This allows development to be accelerated while allowing the company the ability to substantially reduce its mining, processing and site overheads,” stated Albidon.
Labels: ALBIDON NICKLE MINE, JINCHUAN, MUNALI NICKEL MINE, NICKEL
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Kiwara plc discovers high grade nickel assays at Kawako project
Written by Nchima Nchito Jr
Wednesday, February 18, 2009 7:43:06 PM
KIWARA Plc has announced the discovery of high grade nickel assays at its Kawako project in north-western Zambia.
In a statement, Kiwara said the nickel assays had been verified using various analytical techniques and confirmed by independent laboratories.
“The board of Kiwara, the Zambian based exploration company, is very pleased to announce the results of follow up analytical, petrographic and mineralogical work conducted by three independent laboratories Alfred H Knight, Zambia, SGS Zambia and Wardell Armstrong, UK, on the core obtained from its initial drill programme at Kawako that intersected wide mineralized packages which included exceptionally high grades of nickel,” read the statement. “The results confirm that there are no elements which might have an adverse effect on mining or processing.”
And Kiwara board chairman Colin Bird expressed satisfaction with the findings of the report.
“We are extremely pleased that the follow-up work conducted has confirmed the initial result and our original prognosis. Having confirmed the results, we are currently defining the model prior to implementing an aggressive exploration programme,” said Bird.
Kiwara Plc is a mining exploration and development company, focusing on nickel, cobalt, copper and uranium. The company’s prime asset is an interest in mineral prospecting licence 267 which covers an area of 5,500 km on the periphery of the Kabombo dome in North Western Zambia.
Labels: KAWAKO, KIWARA PLC, MINING, NICKEL
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Albidon earns from first sale of concentrate
Written by Chiwoyu Sinyangwe
Saturday, December 27, 2008 1:15:41 PM
ALBIDON has recorded its first revenue from the sale of concentrate from its Munali Nickel Project in Mazabuka.
According to a statement, Australian-based Albidon Limited described the development as a significant step in the transition from development to producer. The company did not, however, state the revenue realised from the transaction.
“In addition, Albidon is actively seeking to sell a parcel of low grade out of specification concentrate, produced during the beginning of commissioning of the concentrator, when mineralised waste was being fed into the concentrator,” the statement read in part.
It also stated that commissioning was progressing well, with the nameplate capacity of 900 000 tonnes per year being achieved on a number of occasions.
“Focus at Munali remained on increasing the processing facility throughout to nameplate capacity and once this was reached, it aimed to expand its targets to 1.2 million tonnes a year of ore mined, which would generate between 10,000 tonnes per year of nickel, in a high quality nickel copper cobalt platinum group metals concentrate,” further read the statement.
Demand from China for nickel and stainless steel has been relatively robust, with China expected to maintain a minimum growth rate of 7 to 8 per cent annually as compared to the recent 11 per cent.
Munali Nickel mine in Mazabuka is the country's first and sole nickel mine.
Labels: ALBIDON, MUNALI NICKEL MINE, NICKEL
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60% drop in nickel prices necessitated restructuring at Munali – Albidon
Written by Joan Chirwa
Monday, December 08, 2008 11:44:21 PM
ALBIDON Zambia Limited has said the 60 per cent drop in nickel prices in the last nine months necessitated its restructuring process at Munali Nickel Project, leading to job cuts of 53 workers.
The company, a 100 per cent shareholding of Albidon Mine of Australia, stated that it was inevitable for the company to trim down its workforce to respond to the declining nickel prices.
“As much as the company regrets this turn of events, metal prices are beyond the company's control and rationalisation was inevitable if Albidon was to continue its operations at Munali for the benefit of all stakeholders,” stated Grant Pierce, Albidon Zambia Limited's general manager. “The total number of employees affected is 53, not 271 as reported on Monday.”
Pierce stated that the company acted in accordance with the country's labour laws.
“Accordingly, management had no choice but to restructure its operations and reduce staff numbers. This reduction follows a previous reduction in expatriate and contractor labour following completion of construction activities and a reduction in staff at Albidon's corporate office in Australia,” stated Pierce. “The company has acted in accordance with Zambian labour laws on advice that the redundancy provisions and procedures under section 26 B of the employment Act, chapter 268 of the Laws of Zambia, relate to oral contracts only and therefore do not apply to Albidon employees as they were engaged on written fixed term contracts of service. Any employees not entitled under the terms and conditions of their contracts to a redundancy payment, were in fact paid an ex-gratia redundancy package regardless.”
He stated that it would not ramp up to full production until the end of March 2009, coinciding with the drop in nickel prices.
“Projections by experts are that low nickel prices will continue for the foreseeable future. Albidon was not in production to enjoy higher nickel prices during the mining boom. Furthermore, Munali has not reached a financially viable position and cannot do so unless significant cost savings can be achieved immediately,” stated Pierce.
Labels: JOBLOSSES, MUNALI NICKEL MINE, NICKEL, RECESSION
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Munali Nickel Mine lays off 271 workers
Written by Chiwoyu Sinyangwe
Monday, December 08, 2008 5:42:00 AM
ABOUT 271 workers at Munali Nickel Mine in Mazabuka have been axed as the mine grapples to cut down its operational cost owing to the drop in global metal prices.
And Albidon Mine of Australia, the 100 per cent shareholders of Munali Nickel Mine, has stated that it is reviewing costs at its Munali project in the light of plummeting commodity prices.
According to sources at the mine, the number of workers to be laid off at the country’s sole nickel mine might increase to over 350 as management reviews its operational costs.
In a statement posted on the company’s website, Albidon has advised that it expects lower than expected, production from Munali Mine, which has forced it to raise extra capital in a bid to ramp up to full production more quickly.
Munali Nickel Mine general manager for corporate affairs Dr Sixtus Mulenga could not comment on the matter as he was unreachable by press time while Mazabuka District Commissioner Tyson Hamaamba confirmed having received a report but that he was waiting for a “comprehensive report” from mine owners.
Albidon stated that it was also looking to boost ore tonnages and ore quality as quickly as possible.
And at the same time, Albidon shares were off 1.1 cents, or 11.46 per cent, to 8.5 cents last week.
Albidon further stated that reduced output, combined with lower nickel prices has resulted in shortages of working capital.
"Additional working capital finance has been raised through the combination of hedging close out, debt restructuring and recent equity placement," the statement read in part. “It is forecast that these funds will allow the mine adequate working capital to ramp up to full production, based on the current mine plan and nickel prices forecast.”
The Munali Nickel miner stated that it was undertaking a review of its operation which had been experiencing delays in production ramp up since the mine came online in July this year.
The company was targeting nickel production of between 10,000 and 10,500 tonnes per year.
And the nickel price for 60-day delivery has dropped from about US $6.50 per pound last October to around US $4 per pound.
Labels: JOBLOSSES, MUNALI NICKEL MINE, NICKEL
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Albidon discovers 1,500 tonnes of nickel at Munali
By Chiwoyu Sinyangwe
Thursday December 20, 2007 [03:00]
Albidon Limited has announced that the Munali Nickel project contains about 1,500 tonnes of nickel and 43,800 ounces of platinum. According to the statement obtained in Lusaka, the estimations follow the results for initial resource of its voyager deposits for its Munali project.
The statement further read that the total indicated and inferred resource for the Munali project has now been increased to over 10.3 metric tonnes of ore.
The company also stated that a scoping study for the Voyager resource would begin early in 2008 and that Voyager would add to either the current mine life of Munali or the production rate per annum.
Munali is one of the biggest new nickel sulphide mining projects currently under way and now looks as if it could be in production well ahead of schedule, although there are still some potential constraints on achieving the targeted start-up date.
According to Albidon Limited's own review of progress published recently, the project is now significantly advanced and is progressing ahead of the previously advised schedule.
A new revised schedule has been prepared following a review of the critical path items and progress to date on construction of the concentrator.
The updated schedule indicates that first ore into the concentrator is expected in the middle of the second quarter of 2008, several months in advance of the previous plan.
The project area comprises the enterprise deposit and a number of other nickel prospects in the Munali intrusion, the most advanced of which is the Voyager prospect.
A positive bankable feasibility study was completed in July 2006 and site works began in September, following government approvals.
A capital raising was completed in October to provide US $35 million of equity finance for the project. An off-take agreement was recently signed with the Jinchuan Group and final documentation on a funding package of US $20 million in subordinated debt and a US $5 million equity investment by Jinchuan was "well advanced", Albidon said.
The US $60 million financing was subject to completion of due diligence and detailed documentation, which Albidon expected to finalise before the middle of the year.
Labels: ALBIDON NICKLE MINE, NICKEL
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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
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Mazabuka mayor under pressure over Munali Nickel Mine
By Henry Chibulu in Mazabuka
Sunday April 15, 2007 [04:00]
Mazabuka mayor Edmund Cheelo has complained of victimisation from his party, the UPND over the decision taken by the council to approve the 2,100 hectares of land applied by Munali Nickel Mine for title deeds. Cheelo said in Mazabuka yesterday, that since the council approved the application for the mine through voting, the UPND provincial leadership had been calling for his expulsion.
He said the decision taken by the council was not political but done in the interest of the nation.
Cheelo said it was unfair for some politicians to lobby for his expulsion just because they failed to defeat the motion to throw away the application by the mine.
He maintained that the council did not violate any party regulations because the matter which was being discussed was purely civic.
Meanwhile, Namalundu ward councillor, Beatrice Haaloba and Ngwezi councillor, Stanley Sakala have come out in full support of the mayor and have urged the party leadership to distinguish civic and political decisions or functions.
The two civic leaders said the mayor did not even take part in voting.
They urged the UPND leadership to support the decision taken by the council because it was meant to boost the economic status of not only the district but the nation as a whole.
The councillors said an urgent meeting had since been called by the provincial leadership to be held in Mazabuka in which the mayor was expected to appear before a panel of senior party officials.
Labels: MINING, MINING CONTRACTS, MUNALI NICKEL MINE, NICKEL
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Levy launches US $100m nickel mining project
By Carol Jilombo in Mazabuka
Tuesday April 03, 2007 [18:02]
PRESIDENT Levy Mwanawasa has launched a US $100 million nickel mining project by Albidon in Zambia's Mazabuka district. And President Mwanawasa has charged that those interested in hampering development should go to hell. Speaking at the official ground-breaking ceremony for US $100 million Albidon Nickel Mine project in Mazabuka, President Mwanawasa charged that there had been people saying that the local people were against the project and that the venture would see about 50 families relocated to another area.
He said contrary to what some people were saying, one of the resettled families who he spoke to yesterday during a tour of the area where the families have been relocated said they were happy with the move and many other families were willing to move. "So whom are you cheating when you say the people are being disadvantaged?" President Mwananwasa asked. "Those of us who want to facilitate development want to do so. You can go to hell with your politics."
He said Zambia had been independent for 43 years and wondered why those complaining did not exploit the nickel. "The nickel has not fallen from heaven like manna, it has always been there. Stop wasting our time here," President Mwanawasa said. He commended the Mazabuka councillors who had voted for the investment to be approved. "Eighteen councillors were for the idea while six were against. So who are you speaking for when you say this investment is not wanted?" President Mwanawasa asked.
And President Mwanawasa said the Munali Nickel project marked another milestone in the development of the Zambian mining industry. "I am very pleased that Albidon is investing more than $100 million in the development of the project," he said. President Mwanawasa said the government wanted to see more developments like the Munali Nickel project in the country.
In his speech under the theme; "Revival and diversification of the mining industry," President Mwanawasa acknowledged that it remained a fact that Zambia was under-explored. He said the fiscal changes as announced in the 2007 national budget should not be seen as signalling departure from the government's strong belief on the importance of mining as an economic engine.
"With the measures announced by the minister of finance, Zambia remains very competitive worldwide in attracting mining investment. The effective tax rate as a consolidation of all taxes paid by an investor in our mining sector has remained very competitive compared with the regional and worldwide average," he said. President Mwanawasa also called for increased participation of Zambians in ownership of large-scale mines.
Labels: MINING, MINING CONTRACTS, NICKEL
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