BNC assesses projects
RYAN CHIGOCHE
The Victoria Falls Stock Exchange listed miner Bindura Nickel Corporation is evaluating several projects that will have a significant bearing on the future of the company.
The assessment of the projects, including Trojan Nickel Mine Down dip exploration and extension, Kingston Hill Exploration, Hunters Road project, BSR Slag dump retreatment project, smelter and refinery project, are expected to be completed by the end of March next year.
Company secretary, Conrad Munganga, said the projects will increase the life of the mine beyond the next decade.
‘’This project (Trojan Nickel Mine Down Dip Exploration and Extension) is aimed at further down dip exploration of the massive ore body beyond 59 Level, in order to increase the life of mine beyond 10 years. This will be coupled with the execution of the second phase of the shaft re-deepening project to access the deeper high-grade resources,” Munganga said.
He added: “Kingston Hill is a potentially open-pitable low-grade deposit located four kilometres from the current Trojan Nickel Mine.
“Exploration work has started, which is aimed at evaluating a potential ore resource. If proved viable, this ore resource will significantly enhance the mining capacity of the company, while extending the life of mine.’’
At the BSR Slag Dump Retreatment Project, Munganga said a test work was currently being conducted to determine the extent to which a slag dump of roughly 3m tonnes that accumulated on site at the Trojan Nickel Mine over the years could be treated for the recovery of nickel, copper, and cobalt.
“The idea has the potential to bring in more money for the company if it is successful,” he said.
Munganga also revealed that review for the Hunters Road project was currently underway and it is expected to generate additional ore resources for the company, thus significantly increasing the capacity of the business.
More so the company has also held preliminary discussions with interested parties on possible partnerships towards the resuscitation of the smelter and refinery plants.
“All these projects are expected to have a significant bearing on the company’s future as life span capacity is expected to increase,” he said.
In its financial results for the 12 month to March 31, BNC profit surged by 361% to US$8m from US$1.7m achieved in the prior comparative period on the back of firming commodity prices.
Revenue increased by 25% to US$74.2m in the reviewed period from ZWL$59m.
However the company incurred a loss in value of US$2.5m due to export surrender and exchange rate disparities.
Head grade declined to 1.30% from 1.52% in the prior year while recovery efficiency was 85.0% compared to 85.9% in the previous year as nickel in concentrate production also declined by 5% to 5,082 tonnes from the previous year’s 5,363 tonnes.
The total amount of ore extracted during the year under review was 463,338, up 13% from the 412,605 tonnes mined the year prior.
The miner employed this strategy so as to benefit from firm nickel prices driven by increased demand for the metal driven from the steel industry and electric vehicle manufacturers.
Nickel production was depressed in the reviewed period as nickel sold for the year, amounted to 4,720 tonnes, 14% lower than prior year sales of 5,496 tonnes but the company was saved by the nickel price which surged by 37% to US$20600/t from US$14999 in the year prior.
High energy prices, macro environmental fears over simmering geopolitical tensions between Russia and Ukraine, industrial growth from government stimulus in Europe and China also supported prices.
On the outlook the company is bullish on nickel fundamentals for the long term.
Munganga said the global electrification agenda and the shift to greener forms of energy are likely to support nickel prices in the medium to long term.
“Prices will be supported by global infrastructure spending if previously set targets are met. It is envisaged that a resolution of the conflict in Ukraine will likely be bullish for nickel as more infrastructure spending will be needed to rebuild the country after the scourge of war. While there will always be some volatility in the Nickel market, the underlying forces that drive it are positive for the long term,” he said.
