tawandamusarurwa
Business Reporter
TROJAN Nickel Mine — a subsidiary of Victoria Falls Stock Exchange-listed Bindura Nickel Corporation (BNC) — requires US$60 million over the next five years for the ongoing mine development programme that has seen operations being resuscitated following BNC’s recent acquisition by Kuvimba Mining House (KMH).
Government has a 65 percent stake in KMH, which was formed a few years ago with the objective of reviving mothballed mines to boost output in the sector.
The group has acquired a number of other mines across the country, including Shamva Gold Mine, Sandawana, Elvington, Jena and Great Dyke Investments.
Trojan Nickel Mine has adopted a new business strategy hinged on mining high-volume low-grade resource and increasing the lifespan of the operation from three to at least 12 years.
The transition from a low-volume high-grade mining model to high-volume low-grade mining strategy was reportedly occasioned by the change in the geology of Trojan.
Nickel is one of the key components used in the manufacture of batteries for electric vehicles (EVs).
In an interview following a recent media tour of Trojan Mine in Bindura, organised by KMH, BNC managing director Engineer Thomas Lusiyano said since the acquisition, US$12 million is being invested into the project annually.
“The bulk of that investment has been going towards procurement of underground mining equipment and development.
“Over the next five years, we would need approximately US$60 million for Trojan Nickel Mine,” he said.
“The bulk of that investment is going to go into two areas: Firstly, the continuous acquisition and upgrading of underground mining mobile equipment. Secondly, for us to undertake capital development that is going to unlock new areas for mining.”
A brand-new exploration rig worth US$1 million has since been procured, as well as long-haul dumps, production rigs and support rigs.
In 2021, KMH paid a US$5,2 million dividend to Government and other local shareholders following a stellar performance in the financial year ending March 31.
Based on the ongoing exploration programme that began in July 2021 at Trojan, the resource at the mine presently stands at 12,5 million tonnes.
“The real work will now come when we undertake capital development . . . that will unlock areas for production.
“So, this is where the bulk of that US$60 million that will be required for the next five years will go.”
In the last decade, especially before BNC’s acquisition, the company was underperforming, as it was producing low-volume high-grade resource, which constitutes 3 percent of the deposit, said Eng Lusiyano.
“So, in terms of utilisation of installed capacity, the mine was utilising up to 40 percent of installed capacity. This is what we are now seeking to change as we go through the transition that we are going through right now so that we can be able to fully utilise 100 percent of installed capacity, which is a million tonnes of ore processed per annum.”
By the end of the 2024 financial year, he said, Trojan would have completely transitioned to a high-volume low-grade mine using the installed capacity, both underground and in the concentrator on the surface.
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