It is reported that the resumption of operations at Bindura Nickel Corporation remains uncertain as the firm's parent company Mwana Africa is still to secure the necessary financing.

BNC operates a smelter and refinery complex in Bindura which processes nickel from subsidiaries, Trojan and Shangani mines, as well as material supplied by third parties. But operations were put on care and maintenance in November 2008 due to what the group described as production difficulties and a sharp decline in the price of nickel.

However, while local the operating environment has improved and global commodity prices are firming, resumption of operations at BNC remains uncertain.

Mwana Africa said that "The economic and operating environment in Zimbabwe is judged to be conducive for the restart of operations. Furthermore, nickel prices traded in the range USD 18,000 to USD 27,000 per tonne during the period; well up from the lows seen in late 2008 or early 2009."

The company said that a resumption of operations will initially focus on Trojan Mine adding negotiations are continuing on raising the necessary funding.

It added that "The group has well developed plans for the restart of the Trojan mine and concentrator, and is in advanced stage discussions with various parties with regard to financing arrangements for the proposed restart, and, for off take arrangements for the concentrate from Trojan. Meanwhile the board believes that the price of nickel has stabilized at a level at which BNC, once restarted, can operate sustain ably."

The group added that care and maintenance costs at BNC were being met from the company's existing resources adding sales of existing stockpiles of in process inventory and the disposal of quoted shares owned by BNC had also raised some USD 0.8 million.

(Sourced from www.newzimbabwe.com)