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In a statement accompanying its financial results for the half year ending 30 September 2011, the mining concern said: “Mwana continues to engage the Zimbabwe Government on how it can meet indigenisation requirements for its operations at Freda Rebecca and Bindura Nickel Corporation (BNC) and is confident that a satisfactory solution will be found.
“Other than funding difficulties arising from lack of clarity around indigenisation, Zimbabwe remains a favourable environment for mining with infrastructure functioning well and a skilled workforce readily available. We remain committed to operating in the country and to continue playing our positive role through our operations at Freda Rebecca and BNC which have benefited the local communities and the wider Zimbabwean economy.”
Meanwhile, Mwana Africa said failure by BNC to secure funding to recapitalise its operations resulted in the nickel producing entity posting a loss of $5,8 million during the period under review.
BNC was put under care and maintenance in 2008 at the height of the economic meltdown.
The company said costs on care and maintenance were funded from working capital and by the referral of critical amounts that remain due on demand to creditors.
In the meantime, the mining group continued to seek funding to start operations and the directors remain optimistic that the prospect of raising restart capital would be improved on the satisfactory conclusion of the present retrenchment proceedings and continued support by creditors.
The mining group also said it had taken into consideration enhanced business environment in the country, improved regulations covering the export and payment for metals, relaxation of foreign exchange controls and the adoption of a multi-currency system.
Online Reporter