JOHANNESBURG (miningweekly.com) – Aim-listed Mwana Africa’s 76.5%-owned Bindura Nickel Corporation (BNC) on Tuesday unveiled a revised mine plan for its Trojan mine in Zimbabwe following the completion of an internal review.
The mine plan had been revised to target higher-grade zones of the orebody, known as massives, following the recent fall in the nickel price.
“The targeting of massives enables us to mine higher-grade ore, thus reducing the cost per ton of nickel produced,” Mwana Africa explained.
The revised plan forsees the mining of an average nickel grade of 1.18% over the next three years, including ore from the massive sulphides, compared to a grade of 0.89% in the original mine plan. Total planned production of 10 200 t of nickel over the three-year period is 35% higher than that estimated in the previous mine plan.
BNC management was already successfully applying the new mine plan at Trojan and was confident that it would significantly improve the company’s cash flow and reduce its working capital requirement.
BNC is seeking debt finance from Zimbabwean banks for the remaining working capital requirement.
“The new mine plan is a positive step towards improving cash flow generation at BNC,” London-based Liberum Capital said in a note to clients on Tuesday.
“The higher-grade mine plan solution suggests that the company believes successful implementation will enhance the longevity of the operation under a lower nickel price.
“The resource base, which saw a 152% increase in February this year and verified massive sulphide extension down-dip, should support a mine life in excess of ten years. A positive result in negotiations with Zimbabwean banks would be a further boost as Trojan seeks self-sufficient operation,” Liberum Capital stated.