https://www.miningweekly.com

Zim nickel smelter to restart in H1 2015

11th June 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Following the completion of an independent study of an accelerated restart plan for Aim-listed Mwana Africa’s 76.3%-owned, subsidiary, Bindura Nickel Corporation’s (BNC’s) nickel smelter, in Zimbabwe, the company on Wednesday announced that the smelter was expected to resume operations during the first half of next year.

The study, which represented a technical and economic assessment of the potential refurbishment and restart plans of the smelter complex, also estimated the overall capital cost to execute the restart would amount to $26.5-million.

Mwana said that about half of the capital cost would be funded through debt finance, with the remainder to be financed from existing BNC cash flow and Mwana cash balances.

Once operational, the smelter was expected to start contributing to the company’s cash flows during 2016, with its operating cost having been estimated at $251/t of nickel concentrate.

Mwana noted that the installed power for the furnace was 14 MW, with concentrate output expected to be about 160 000 t/y.

Therefore, as concentrate production from the company’s Trojan mine, also in Zimbabwe, was expected to be about 106 677 wet metric tons a year, the smelter would have spare capacity to treat third-party material, Mwana said. 

“The [smelter restart plan] paves the way for us to capitalise on the opportunity presented by a favourable nickel market. We can grow our revenue stream by moving rapidly up the value chain from current production and sale of concentrate to production and sale of higher value nickel leach alloy,” Mwana CEO Kalaa Mpinga commented.

The company also pointed out that additional opportunities existed for Mwana beyond the smelter restart.

These included potential to increase volumes through the development of BNC’s Hunters Road mine project at a later date, investing in the adaption of the smelter to treat platinum-group metals (PGMs) and restarting the BNC refinery – which was currently on care and maintenance – to allow it to treat nickel leach and PGMs.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Hanna Instruments Image
Hanna Instruments (Pty) Ltd

We supply customers with practical affordable solutions for their testing needs. Our products include benchtop, portable, in-line process control...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.117 0.157s - 107pq - 2rq
Subscribe Now