adminresume operations.
The mining firm has been under care and maintenance since 2008, at the height of Zimbabwe’s economic turmoil.
A total of US$26 million is required to restart Trojan Mine.
BNC is seeking to obtain improved credit clearance terms so that the firm will not be obligated to use funds secured for the restart to clear outstanding dues to suppliers.
And discussions with workers are meant to find common ground, in the face of challenges the firm is currently facing to reduce the numbers and cut on costs.
BNC chief operating officer Mr Batirai Manhando told Herald Business that the restructuring proposal centred on new credit terms and cutting the head count at the firm.
“We have creditors that supplied goods when the company was still operating and have not been paid. On labour negotiations we are saying how do we reduce the numbers and how do we part ways (with the retrenched workers),” said Mr Manhando.
He said the restructuring was critical for BNC, as it was the only way to pave way to secure funding needed to finance the restart of operations at the mining firm.
In a statement to shareholders, BNC directors said: “This plan is considered to improve BNC’s ability to secure funding for the planned restart of operations at BNC.”
As of September 2010 BNC had just over US$40 million non-current liabilities (US$14 million) and current liabilities (US$26,6 million) and about 2 447 workers.
The firm recently signed an off-take agreement with Glencore International, a leading global trader in commodities, under which Glencore will buy all nickel concentrate produced at Trojan Mine until its smelter and refinery is back on stream.
Glencore would pay the nickel-mining firm an LME linked price based on agreed terms of the final contained nickel. Mwana Africa, BNC’s parent firm, chairman Mr Kalaa Mpinga, said the agreement with Glencore
was critical for the revival of BNC.
BNC requires about US$26 million to restart the mine according to a competent person’s report by SRK Consulting, which also confirmed the existence of 3,5 million tonnes or ore, with potential for increase, at an average grade of 1,29 percent.
The SRK Consulting report did not cover Shangani Mine or the restart of BNC’s smelter and refinery complex. Additional aspects of the Trojan restart programme such as clearing of debts and staffing levels were not covered in the report.
Loan finance from the Industrial Development Corporation of South Africa amounting to US$10 million remains undrawn pending conclusion of terms for its utilisation.
BNC was one of the many mining entities that suspended operations in 2008, as economic conditions became unbearable, as did world metal prices and financial problems.
Online Reporter