adminGolden Sibanda, Harare Bureau
Bindura Nickel Corporation is weighing options on the possibility of resuscitating Shangani Mine, but the eventual decision depends largely on nickel prices as the mine’s deposits are low grade. Managing director Batirai Manhando said on Friday that the mine will for the moment remain on care and maintenance. He said they were still reviewing possible options to restart operations.
“Shangani is a low grade mine and its resuscitation depends on the thresholds of prices (on international markets).
“We are leaving the options open. Shangani and Hunters Road are options into the future. Shangani’s future depends on prices,” he said.
Manhando would however not say what price threshold BNC was looking at in terms of what is required to make Shangani Mine viable if restarted, but said the review would look at the cost of restarting the closed nickel mine.
Shangani nickel mine has been under care and maintenance since November 2008 after it was closed at the height of Zimbabwe’s economic crisis, which ended in 2009 after dollarisation.
The mine, which was put on care and maintenance together with Trojan Mine as economic problems took a toll on their operations, was also weighed down by a plunge in nickel prices.
It has remained closed since then as BNC is keeping eyes on prices before restarting operations.
Online Reporter