admin
Business Reporter
Mwana Africa Plc’s profit for the year to March 31, 2015 went down 86 percent to $7 million from $50,6 million of the previous year despite having recorded an increase in revenue. The mining group’s revenue for the year increased 7 percent to $152,3 million in spite of weak gold and nickel global prices. Mwana Africa’s consolidated profits for the period under review deteriorated sharply with a number of operational setbacks that contributed to higher unit costs.
At Freda Rebecca Gold Mine, production for the period stagnated as a result of equipment failures that needed to be addressed and improvements that were effected on an ad hoc basis.
Mwana said these technical problems were mirrored at Bindura Nickel’s Trojan Mine, where a large part of the mine’s equipment had been allowed to deteriorate during the period of care and maintenance, and needed to be progressively refurbished and replaced throughout the year.
The mining group said the planned restart of Bindura Nickel’s smelter was initiated during the past year at a budgeted cost of $22 million, with internal financing augmented by the issue of a $20 million five-year bond.
Mwana Africa said the smelter will have the capacity to process Trojan’s own concentrates and to toll-treat third party concentrates to produce nickel leach alloy.
The bond will be serviced from revenues enhanced by the smelter’s operations.
Mwana said in South Africa, while the recovery of diamonds at the Klipspringer residue treatment joint venture reached planned capacity, this was less than anticipated.
“Consideration is now being given to the reprocessing of coarser tailings and to an eventual reopening of underground operations on the mine’s Leopard fissure,” said Mwana Africa.
Mwana Africa PLC is a pan-African, multi-commodity mining and development company.
Online Reporter