Mwana Africa PLC said that Bindura Nickel Corporation has entered into an off take agreement with Glencore International AG. Mwana has an interest of 52.9% in Bindura Nickel.

The agreement would cover all the nickel concentrate to be produced following the restart of operations at the Trojan Mine. Bindura Nickel would sell all nickel concentrate produced at the Trojan Mine, until the Bindura smelter and refinery are restarted, to Glencore. Glencore would pay Bindura Nickel a London Metal Exchange linked nickel price on agreed terms for final contained Nickel.

Once financing is secured to enable the restart, Bindura Nickel expects to recommence mining at Trojan, initially at a rate of 10,000 tonnes per month ramping up to 70,000 tonnes per month over a period of 12 months. Once steady state is achieved at Trojan Mine, Bindura Nickel expects to mine about 870,000 tonnes of ore per year, at an average head grade of 0.90%.

After processing, Bindura Nickel expects to produce concentrate containing 7,000 tonnes nickel per year at steady state.

(Sourced from RTTNews)