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Business Reporter
LISTED Bindura Nickel Corporation (BNC) recorded an 8 percent increase in nickel ore production to 11 7249 tonnes in the first quarter to June 30, 2023 driven by the positive impact of investments in new underground equipment.
In the corresponding period last year, BNC mined 108 632 tonnes of ore.
BNC company secretary Conrad Mukanganga said in a trading update for the quarter under review that during the corresponding period last year, a total of 108 632 tonnes of ore were mined.
“Ore mined for the quarter, at 117 249 tonnes, increased by 8 percent in comparison to the 108 632 tonnes achieved for the same period in the previous year due to the introduction of new underground Load, Haul and Dump (LHD) equipment. However, the run-of-mine ore was still low due to the deterioration of the Sub-Vertical Rock (SVR) winder bull gear which subsequently resulted in a 70 percent decline in SVR capacity. The decline in SVR capacity also constrained development work planned for the quarter as ore hoisting was prioritised over waste hoisting.” He said this consequently caused a delay in the unveiling of planned mining areas.
Ore head grade, at 1,02 percent nickel, was 2 percent lower than the 1,04 percent nickel grade achieved in the same period last year, due to the unavailability of high-grade massive ore sources.
During the quarter under review, ore milled was relatively the same as the milled tonnage in the corresponding period in 2022.
“The concentrator plant performance was, however, compromised by intermittent breakdowns driven by the unavailability of critical spares for various components of the plant.
“Nickel in concentrate produced, at 823 tonnes, was 9 percent lower than the 902 tonnes produced in the same period last year, reflecting the adverse impact of the lower grade of ore processed,” he said.
Unit costs increased on the back of the high cost of maintaining aged underground mining mobile equipment and the increase in local operating costs which was driven by exchange rate disparities. In addition, the lower nickel in concentrate production had a negative impact on unit costs.
“The cash cost (C1) for the quarter, at US$14,425 per tonne, was 2 percent down from the same period in the prior year (US$14,770 per tonne), while the all-in-sustaining cost (C3), at US$18,812 per tonne, increased by 15 percent (prior year: US$16,289 per tonne).
“The average London Metal Exchange nickel price of US$21,933 per tonne was 1 percent higher than the US$21,783 per tonne which was forecasted for the quarter and 24 percent lower than the US$29,029 per tonne which was achieved in the comparative period in the previous year,” said Mr Mukanganga.
The price decline was attributable to a surge in global nickel supply, which was outpacing demand. Nickel in concentrate sales for the period at 799 tonnes, were 19 percent lower.
Meanwhile, BNC has attained nearly four million fatality-free shifts by the end of the quarter under review as the company continued with a good safety performance record.
Mr Mukanganga said the nickel producer continues to comply with all applicable health and environmental legislation, policies, and procedures and remains (International Standards Organisation (ISO) 14001:2015 and ISO 45001:2018 certified.
“The company’s good safety performance continued, resulting in the achievement of 3 829 410 fatality-free shifts by the end of June 2023.
“The last fatality was recorded in June 2015.
“No Lost Time Injuries (LTIs) were recorded in the quarter, unchanged from the same period last year,” he said.
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