Bindura Nickel on hold despite completion of key r...

Bindura Nickel on hold despite completion of key repairs

Nyashadzashe Ndoro

Zim Now Reporter

Bindura Nickel Corporation, a subsidiary of Kuvimba Mining House, announced the successful completion of their Sub-Vertical Rock Winder Bull Gear Replacement Project on April 12th, 2024.

The project, which necessitated a shutdown of the Trojan Nickel Mine since September 2023, was expected to pave the way for a production restart.

Despite this positive development, BNC remains cautious about resuming operations due to a combination of factors.

“The SVR winder is now ready and available for production,” assured the company in a recent cautionary announcement. The company, however, highlighted several constraints that are likely to cause delays.

According to Tinashe Lusiyano, BNC’s Managing Director, “nickel prices remain depressed on global markets, at unsustainably low economic levels for the business”.

He said that the situation is compounded by “high input costs, particularly the cost of electrical power, significant mining depth and low resource grade”.

BNC is also facing challenges in “mobilising the requisite capital for retooling,” specifically for acquiring additional underground mining equipment and upgrading the processing plant.

The company is currently assessing the impact of these critical issues, and the outcome “may have a material effect on the price of the Company’s securities”. BNC has advised shareholders and the investing public “to continue exercising caution when dealing in the Company’s securities until a full announcement is made”.

While the mine is physically prepared to resume operations, global market conditions and internal resource limitations are currently hindering a restart.