Bindura Nickel Corp (BNC)
- Full name:
- Bindura Nickel Corporation (BNC)
- Mwana interest:
- Mwana Africa Holdings (Pty) Limited acquired a controlling interest (53%) in BNC from Anglo American Corporation of Zimbabwe in 2003. BNC is listed on the Zimbabwean Stock Exchange.
- Assets and operations:
- The company owns and operates the Shangani and Trojan nickel mines, which have hoisting and treatment capacity of 1.0Mt and 1.1Mt a year respectively.
- Construction of an upgraded concentrator at Trojan, designed to improve nickel recovery and reduce the talk content of the concentrate, was completed in February 2008. Other projects include the redeepening of the Trojan shaft, and construction of a conveyor decline at Shangani.
- The Bindura Smelter and Refinery complex produces high quality nickel cathodes, copper sulphide and cobalt hydroxide. Alongside material from the Trojan and Shangani mines, the plant has toll treated nickel concentrates and nickel matte from third parties to utilise spare capacity. Current smelter capacity is 17,000tpa and for the refinery 14,500tpa.
- Construction of an oxygen injection plant was completed in 2008.
- Current status and prospects:
- The Shangani and Trojan mines and the Bindura Smelter and Refinery complex were placed on care and maintenance in November 2008 as a result 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 has been put on hold.
- Following an improvement in commodity prices and changes in Zimbabwe mining
regulations, Mwana and BNC, working with BNC’s stakeholders, are developing
options for a new business model at BNC that may result in a lower cost of
supply from BNC’s mines while maintaining BNC’s smelting and refining capacity,
and are investigating the availability of external funding for any additional
investment that may be required.
Reserves and Resources
Bindura Nickel Corporation - Resources and Reserves as at 31 March 2009
| Classification of Resources | Tonnage (000t) | Grade (%) | Nickel (t) |
|---|
| Measured | | | |
|---|
| Trojan | 2,560 | 0.93 | 23,710 |
| Shangani | 870 | 0.42 | 3,690 |
| Hunter's Road | – | – | – |
| Total | 3,430 | 0.80 | 27,400 |
| | | | |
|---|
| Indicated | | | |
|---|
| Trojan | 3,640 | 1.93 | 70,230 |
| Shangani | 6,030 | 0.47 | 28,130 |
| Hunter's Road | 45,060 | 0.54 | 243,230 |
| Total | 54,730 | 0.62 | 341,590 |
| | | | |
|---|
| Measured & Indicated | | | |
|---|
| Trojan | 6,200 | 1.52 | 93,940 |
| Shangani | 6,900 | 0.46 | 31,820 |
| Hunter's Road | 45,060 | 0.54 | 243,230 |
| Total March 2009 | 58,160 | 0.63 | 368,990 |
| Total March 2008 | 16,020 | 0.88 | 141,050 |
| | | | |
|---|
| Inferred Resources | | | |
|---|
| Trojan | 7,940 | 0.72 | 57,410 |
| Shangani | 4,850 | 0.53 | 25,540 |
| Hunter's Road | – | – | – |
| Total |
12,790 | 0.65 | 82,950 |
| Total March 2008 | 13,180 | 0.64 | 84,850 |
Note:
- As a result of global decline in nickel prices, exacerbated by the elevated cost of production from BNC’s mines owing to reduced production volumes and the difficult social and economic environment in Zimbabwe, BNC’s mining operations were placed onto care and maintenance in November 2008. Commodity prices prevailing at 31st March 2009 indicated that mining of the resources at Trojan, Shangani and Hunters Road would be uneconomic, and consequently no reserve statement has been included, consistent with the JORC resource management code. Previously stated reserves of 12,385t, 25,109t, 175,086t respectively (stated as of 31st March 2008 and calculated based on a nickel price of $7.50 / lb) have been reclassified as resources.
- The indicated resource at Hunters Road reflects inclusion of the East orebody, which has been drilled out but for which no mine plan or pit design has been prepared. Hunters Road West orebody excludes first 30m of untreatable oxide ore mineralisation. The high grade in the ‘Indicated’ at Trojan is caused by massive sulphide ore below 35/0 level. Confirmatory drilling to verify this high-grade ore has started.
- BNC is investigating options to reduce its cost of production. A statement of reserves will be compiled in due course based on the results of this analysis.
