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Business Reporter
MWANA Africa is seeking debt finance from local banks after completing a review of its mine plan at Trojan Mine.
In a notice to shareholders, Mwana Africa said the revised mine plan which targeted higher grade ores zones, would significantly reduce the mine’s working capital requirements.
Bindura Nickel Corporation, which owns Trojan Mine, was forced to revise mine plans following a fall in nickel prices on the global commodity market.
Mwana said targeting higher grades of ore would reduce the cost per tonne of nickel produced.
“Bindura Nickel Corporation has completed the internal review of the revised mine plan at its Trojan Mine.
“The Trojan mine plan has been revised to target the higher grade zones of the ore body, known as “massives”, following the recent fall in the price of nickel.
“The occurrence of the massives enables higher grade ore to be mined and thus reduces the cost per tonne of nickel produced.
“BNC management is already successfully applying the new mine plan at Trojan and is confident that the new plan will significantly improve BNC’s cash flow and reduce its working capital requirements.
BNC is in the process of seeking debt finance from Zimbabwean banks for the reduced working capital requirement,” said the statement.
BNC has sold more than 1 000 tonnes of nickel since the first concentrate was sold following the restart of operations in April.
BNC had been placed under care and maintenance in 2008 at the height of the country’s economic challenges.
In September last year, BNC embarked on a $23million recapitalisation programme to fund the restart of operations at the mine.
Online Reporter