BNC workers granted ‘extra time’

the rights issue will be utilised for the restart of the Trojan Nickel Mine.
BNC has, however, extended by a month the deadline for the rights issue. The rights issue was initially expected to close at the end of last month but has now been moved to August 31.
Mwana Africa, through its subsidiary Zimnick Limited, will act as underwriter for the BNC rights issue. Conclusion of the rights issue is conditional upon, inter alia, BNC shareholder approval and satisfactory resolution of legacy creditor, staff retrenchment and back pay liabilities at BNC.
On Monday, the company said shareholders and creditors have mostly acceded to the share sale, although more time will be granted to staff to respond to the offer on their part.
“BNC shareholders approved the rights issue at an EGM held in Harare on June 29 2012. In parallel to the rights issue process, BNC management has engaged creditors and staff on settlement proposals for the amounts owing to them.
“Creditors have largely accepted the proposals, and the BNC board has extended the rights offer closing date to 31 August 2012 in order to allow additional time for staff to respond to the offer made to them,” said Mwana in a statement.
The company owns and operates the Shangani and Trojan nickel mines, as well as a smelter and refinery complex.
BNC also owns the large Hunters Road nickel deposit which is a pre-development nickel project.
The Government recognises the significance of the BNC and has since accorded the miner National Project Status, which will allows duty-free importation of equipment.
Presenting the Mid-Term Fiscal Policy Review Statement, Finance Minister Tendai Biti said Government had taken a deliberate approach to facilitate the resumption of operations at closed and distressed mining companies to ensure the country benefits from its natural resources.
Management at BNC has since said it is seeking to restart the BNC assets in a phased manner, with the first phase being to restart the Trojan Mine and to sell Nickel in concentrate.