adminIn a statement, Mwana Africa chief executive Mr Kalaa Mpinga said his organisation welcomed the investment from the Chinese mining group.
“I am delighted to welcome China International Mining Group Corporation’s substantial investment into Mwana Africa, which, allied with the additional money we are looking to raise today, should enable us to restart our nickel mine in Zimbabwe,” he said.
Trojan Mine has the capacity to treat 1,1 million tonnes of nickel annually.
The investment into Trojan Mine by the Chinese investor is part of $35 million that Mwana Africa is seeking to raise through a conditional subscription and placing of new ordinary shares.
The net proceeds from the subscription and placing would also be principally used to fund Mwana Africa’s gold and copper-cobalt activities in the Democratic Republic of Congo as well as the general provision of working capital for the group.
Mwana Africa holds a 52,9 percent interest in Bindura Nickel Corporation (BNC), which is the only fully integrated nickel operation in Africa comprising three mining
projects including Trojan Mine, a smelter and a refinery.
BNC’s operations were placed on care and maintenance in November 2008 due to the prevailing nickel market conditions and hyperinflation concerns in Zimbabwe.
The company believes that economic and operating conditions in Zimbabwe and general nickel market conditions are now conducive to resume operations at Trojan Mine.
United Kingdom-based SRK Consulting has provided Mwana Africa with a competent persons report outlining restart plans at Trojan to ramp up production to 7 000 tonnes per annum of nickel in concentrate.
Online Reporter