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the majority owners of the mine, Mwana Africa have said.
In a statement, Mwana Africa said following successful mobilising of resources and partnering of a Chinese investor, production was set to resume at the mine which suspended operations in 2008.
The mine, together with Shangani Mine, was placed on care and maintenance as a cash preservation measure to counter the effects of continued production difficulties and a sharp decline in the price of nickel.
As part of the care and maintenance programme, further expenditure on capital projects was put on hold.
“With our recent successful fundraising securing $33,5 million, and our new strategic Chinese investor on board, we are very well placed to begin the process of restarting our Trojan nickel mine and further continue our exploration work — which is already yielding some compelling results. Mwana is really on the move, with 2012 set to be an exciting year for the company,” Mwana Africa chief executive Mr Kalaa Mpinga said in an operations and exploration update.
Meanwhile, Mwana Africa’s gold mine in Bindura, Freda Rebecca, produced 14 280 ounces of gold in the quarter ending 31 March, an increase of 19 percent from the previous quarter.
The company attributed the rise in production to increased mill throughput together with an increased head grade and a marginal improvement in recovery.
Just above 244 000 tonnes of ore were milled in the quarter compared to 222 817 tonnes in the December quarter.
Mwana said power problems which in the past caused stoppages had been solved.
“The principal source of downtime during the quarter was associated with unusually high wet season rainfall which caused damage to the mine’s power supply line from the local utility.
“However, despite the power interruptions, through ongoing focus on mill optimisation, Freda Rebecca recorded an increase in mill throughput for the period. Power supply issues have been resolved and supply is now stable,” said the statement.
Online Reporter