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changed for the better since its placement under care and maintenance in 2008.
The company only successfully secured a US$10 million facility from South Africa’s Industrial Development Corporation to take care of plant and machinery.
Chief operations officer Mr Batirai Manhando said nothing had changed since last year, as the nickel producer and processor had yet to secure funding for restart.
“We are still surviving the same way we were surviving. Remember, we only got a loan of (US$10 million) from IDC,” he said.
“We have not started (production). There is no production going on. Full restart funding is not yet available. But there is hope – a lot of things are happening.”
He also said while a competent person’s report by SRK Consulting of UK indicated US$26,3 million was needed to restart BNC, the figure could have increased slightly, as it has been a long time since the report was produced.
What makes the situation worrisome is that BNC indicated early last year that obtaining the requisite funding presented a material challenge that threatened its future.
In July last year, BNC said it had engaged creditors and workers on a restructuring proposal designed to aid its bid to secure funding required to restart operations.
Operations were put under care and maintenance in 2008 at the height of Zimbabwe’s economic turmoil. A total US$26 million is required to restart Trojan Mine.
BNC sought to obtain improved credit clearance terms so it would not be obligated to use funds secured for the restart to clear outstanding debts to suppliers.
Discussions with the workers are aimed at finding common ground, in the face of the challenges the company is currently facing, to reduce the numbers and costs.
The restructuring was critical for BNC, as that was the only way to unlock fresh funding needed to finance the restart of operations.
BNC last year signed an off-take agreement with Glencore International, a leading global trader in commodities, under which Glencore would buy all nickel concentrate produced at Trojan Mine until its smelter and refinery were back on stream.
But this would only come into effect assuming that BNC secured the financial resources it has been hunting for over the last three year.
BNC needs about US$26 million to restart operations, according to a competent person’s report by SRK Consulting, which also confirmed the existence of 3,5 million tonnes of ore, with potential for increase, at an average grade of 1,29 percent.
The SRK Consulting report did not cover Shanganie Mine or the restart of BNC’s smelter and refinery complex. Additional aspects of the Trojan restart programme such as clearing of debts and staff levels, were not covered in the report.
BNC suspended operations in 2008, as economic conditions became unbearable, as did world metal prices and financial problems.
Online Reporter