Mining equipment maintenance pushes up Bindura Nic...

Mining equipment maintenance pushes up Bindura Nickel unit costs

Audrey Galawu

Bindura Nickel Corporation reported an increase in unit costs for the quarter ended June 30, 2023 at the back of high cost of maintaining aged underground mining mobile equipment.

BNC contributed the high unit cost to the increase in local operating costs, which was driven by exchange rate disparities and lower Nickel in concentrate production.

According to the BNC report, the cash cost for the quarter, at US$14 425 per tonne, was 2% down from the same period in the prior year which was US$1 770 per tonne.

“The average London Metal Exchange Nickel price of US$21 933 per tonne was 1% higher than the US$21 783 per tonne which was forecasted for the quarter and 24$ lower than the US$29 029 per tonne which was achieved in the comparative period in the previous year.

“The price decline was attributable to a surge in global Nickel supply which was outpacing demand. Nickel in concentrate sales for the period, at 799 tonnes, were 19% lower than the 989 tonnes sold during the same period last year,” reads the report.

BNC also recorded an 8% increase in the ore mined for the quarter ended June 30, 2023 contributed to the introduction of new underground Load, Haul and Dump equipment.

For the quarter in question, the corporation mined 117 249 tonnes of ore compared to the 108 632 tones achieved for the same period in the previous year.

However, the corporation reported low run-of-mine due to the deterioration of the Sub-Vertical Rock winder bull gear which resulted in a 70% decline in SVR capacity.

The decline of the SVR also constrained development work paned for the quarter as or hoisting was prioritised over waster hoisting.

Meanwhile, the company achieved 3 829 410 fatality-free shifts by the end of June.

The last fatality was reportedly recorded in June 2015.