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South Africa based Mwana Africa Limited will need over US$26 million to revive its smelting plant next year and help sustain operations for Bindura Nickel Corporation, its subsidiary company located in Zimbabwe.
The revival of the smelter at an estimated cost of US$26.5 million is envisaged to save the company’s resources of about US$ 9m annually in transport and logistical costs, according to a report by ambriefonline.com.
Citing BNC technical director Thomas Mashungupa it reports that the re-opening of the smelter is going to lessen the number of trucks that transport nickel concentrate to South Africa, to one truck per day from 12 trucks daily.
This initiative is going to boost revenue in the country because the company’s capacity to eliminate penalties on toxic minerals found within nickel concentrate will be enhanced, Mashungupa adds.
According to reports, the project has already been approved by the shareholders, with US$ 26.5m financing required. Part of the funding will come from the money generated by the company and the remainder will be raised through debt.
Once the funds are raised, the smelter, which produces nickel cathodes, copper sulphide and cobalt hydroxideis anticipated to be in operation in the first half of 2015. Bindura Nickel Corporation is listed on Zimbabwe bourse.
Background:
Bindura Nickel Corporation is a mining company based in Zimbabwe‘s Mashonaland Central. Bindura operates mines and a smelter complex in the area of Bindura, Zimbabwe.
BNC is operated and majority-owned Mwana Africa plc, an African multinational mining company based in Johannesburg.
A $43.7 million impairment charge for Bindura Nickel Corporation’s operations in Zimbabwe resulted in huge losses for its parent company, Mwana Africa in 2013.
The losses totaled $42.5 million, more than $35 million more than the previous year.
