BNC sets new output target

steady state production levels in 24 months.
BNC stopped production in 2008, at the height of Zimbabwe’s economic challenges, but was largely weighed down by poor prices on international markets.
“The restart plan of Trojan Mine involves the production of 7 000 tonnes of nickel in concentrate a year, to be sold to Glencore. Production ramp-up will be very quick, as would be expected, and the operation should reach steady production within 24 months,” said chief executive Mr Kalaa Mpinga in Mwana Africa’s 2012 annual report.
The 52,9 percent shareholder in BNC has worked hard towards the restart of operations, including seeking a US$10 million loan from the Industrial Development Corporation of South Africa and raising US$12 million from the sale of Mwana Africa’s ordinary shares.
The controlling shareholder is now working on a US$21 million rights issue which was supposed to close end of July but now extended to end of this month, as efforts to resume nickel production gather momentum.
Repairs have covered the main rock shaft bunton sets, main rock shaft ore, bin and waste conveyors, crushing plant steel structures, electrical panels and electric cables, overhauling crushers, conveyors and screens and hot commissioning of crushing circuit.
Work on the main steel structures in the milling section is in progress. But further funding will be required to take Trojan to the stage where it is cash-generative. The directors have not disclosed the amount of additional funding needed.
BNC is Africa’s only integrated nickel smelting and refinery firm.
“There has been a great deal of progress in priming the operation for restart, including complete refurbishment of the crushing circuit,” said Mr Mpinga.
“BNC work is now focused on resolving legacy creditors and concluding a retrenchment programme at the Trojan, as well as recapitalising BNC, so operations at Trojan may be restarted.”
The BNC board of directors has decided the most viable way to restart BNC’s operations is in stages, starting with the resumption of concentrate production from the Trojan and processing facility, Mwana Africa chairman Mr Oliver Baring said.
He said BNC had been through a difficult year and operations had remained on care and maintenance. In spite of this, the management team has quietly gone about refurbishing the Trojan operation and priming it for the restart of production.
Most major components of the operation have been refurbished to a high standard and this will be of major benefit to the production ramp-up when operations restart.
Mr Baring said other BNC assets remain under care and maintenance, but it was important to keep in mind the huge strategic value within BNC, including a fully integrated nickel smelter and refinery and the undeveloped Hunter’s Road nickel deposit.