daniel chigunwe
Business Writer
Government has taken drastic measures to address the challenges faced by Bindura Nickel Corporation’s Trojan Nickel Mine.
In a gazetted notice, Justice Minister Ziyambi Ziyambi placed the mine under reconstruction, appointing Mutsa Remba as the administrator. This means the mine’s control shifts to the administrator, tasked with restructuring and reviving its operations.
This decision comes as Zimbabwe’s largest nickel producer grapples with equipment breakdowns and a significant decline in global nickel prices, impacting its overall viability. The reconstruction process aims to address these issues and potentially pave the way for the mine’s recovery.
“The board of the company under reconstruction shall be divested of the control and management of the company’s affairs, and any person managing or controlling the company’s affairs in any capacity other than as simply a member of the board referred to above shall continue in office subject to the control and direction of, and be answerable to, the administrator.”
BNC, which owns Trojan Mine, is 70 percent owned by Mutapa Investment Fund.
In early March, this publication reported that BNC is growingly increasingly vulnerable to a myriad of viability challenges in its operations.
These challenges include low nickel price on international markets, high domestic input costs, particularly electrical power costs, which have increased by more than 60 percent over the last 16 months, according to Finance Director Believe Dirorimwe.
Operationally BNC was in a position of disadvantage, affected by the breakdown of its Sub Vertical Rock Winder (“SVR”) bull gear in September 2022.
This breakdown led to a decline in the SVR hoisting capacity, which declined to just 25 percent of its installed capacity.
According to BNC, no ore was mined or milled during the third quarter of the 2024 financial year stemming from the above-mentioned SVR breakdown.
However, despite facing operational challenges, particularly the prevailing low Nickel price, Trojan Nickel Mine is sitting on approximately 13 million tonnes of nickel ore at an average grade of 0, 97 percent.
This substantial resource gives a life of mine of at least 10 years at maximum design production capacity, according to management.
Bongani Ndlovu