By Wellington Zimbowa
BINDURA Nickel Corporation (BNC) says nickel concentrate sales for the half-year ended 30 September 2020 recorded a 15% dip to 2 566 tonnes from 3 002 tonnes sold in the same period the preceding year, due to temporary market access glitches during the period April to June 2020 pending new intervention strategies following the termination of the Glencore Off-take Agreement.
BNC reported a revenue of US$25.0 million, which was 12% lower than the US$28.3 million achieved the same period in the prior year due to a decline in sales volumes, coinciding with a 5% decline in the London Metal Exchange (LME) nickel price.
The LME nickel price averaged US$13 214 per tonne in contrast with US$13 927 per tonne achieved in the prior year.
The nickel mining giant’s profit and total comprehensive income stood at US$3.4 million which was 43% below the prior year’s reported figure of US$6.1 million.
“The decrease in profitability was mainly attributable to the decline in sales and net foreign exchange gains recognised in the prior period amounting to US$4.1 million, versus a net exchange loss of US$1.6 million realised in the period under review,” said the company in its recent stakeholder trade update.
According to the Bindura based mining company based in Mashonaland Central province, Trojan Nickel Mine is the only operating mine within BNC.
“On average, it mines +/-440 000 tonnes of ore and produces +/- 6 000 tonnes of nickel in concentrate per annum, translating to approximately 44% of capacity.
“The reduced capacity has largely been driven by a mining strategy anchored on a high-grade/ low-volume ratio of 1 part massives to 2 parts disseminated ore,” the Company said.
In the interim, the Smelter Restart Project has registered an 83% completion progress while care and maintenance for The Refinery and Shangani Mine are still ongoing.
Trojan Mine, Shangani Mine, the BSR (formerly Bindura Smelter and Refinery) facility, Hunter’s Road Project, Damba-Silwane and the Trojan Hill and Kingstone Hill Prospects are some of the subsidiaries of the mining conglomerate engaged in nickel mining, processing and exploration across Zimbabwe.
Collectively, these resources owned by BNC adds up to a total of 71.4 million tonnes of ore at an average grade of 0.59%, containing approximately 420.8 kilo-tonnes of Nickel.
By Wellington Zimbowa