News Column

Mwana Africa Says BNC Nickel Smelter To Be In Operation In 2015

June 11, 2014

Anthony Tshibangu

LONDON (Alliance News) - Mwana Africa PLC said the nickel smelter owned by its Zimbabwe-based subsidiary Bindura Nickel Corp will be in operation in the first half of 2015, after a study confirmed its economic potential.

Mwana said the nickel smelter should contribute to cash flows from 2016. The company expects to spend around USD26.5 million getting the smelter up and running, with around half this funded through debt finance. The reminder will be financed from existing Bindura Nickel cash flow and company balances.

The estimated operating cost is USD251 per tonne concentrate.

The installed power for the furnace is 14 megawatts, and concentrate throughput will be around 160,000 tonnes a year. Trojan concentrate production will be 106,677 wet metric tonnes per year and therefore there will be spare capacity on the smelter to treat third-party material

Mwana Africa shares were trading up 5.0% at 2.10 pence Wednesday morning.

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Source: Alliance News

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