ZSE Listed Companies Profiles: Bindura Nickel Corporation (BNC)

Sector: Mining | Ticker: BIND.zw | Listing Status: Active | Share Price: ZWL(c) 399.50 | Market Cap: ZWL$4,952,428,165 | Updated: 16^th of Oct 2020

Background

Being the dominant player in the Zimbabwean Nickel Mining Sector, Bindura Nickel Corporation (BNC) operates mines and a smelter complex in Bindura, Zimbabwe; engaged in the mining and extraction of nickel, and production of nickel by-products (copper and cobalt). The company’s current projects include a shaft re-deepening project, sub-vertical service winder and main rock winder drives upgrade project, concentrator plant and sub-vertical medium voltage switch room equipment replacement project, and a smelter restart project. Founded in 1966, BNC is a subsidiary of Zimnick Limited and operated and majority-owned by Mwana Africa plc, an African multi-national mining company based in Johannesburg, South Africa. The operating subsidiary of BNC is Trojan Nickel Mine Limited.

Bindura Nickel Corporation is listed on the Zimbabwe Stock Exchange

Holding Company

The ultimate holding company is Asa Resource Group Plc., which acquired the majority shareholding in BNC from Anglo American Corporation Zimbabwe Limited in 2003. As at 31 March 2019, Asa Resource Group Plc.’s shareholding in BNC was 74.73%.

Divisions of BNC

BNC has three subsidiaries, namely Bindura Smelter and Refinery Limited (BSR), Hunter’s Road Nickel Mine (Private) Limited (Hunter’s Road) and Trojan Nickel Mine Limited (TNM). However, the assets and liabilities for all operations of the BNC Group are in TNM.

TNM has two mines, one at Bindura, approximately 90 kilometers north east of Harare (Trojan Mine) and one in Shangani near Insiza, approximately 60 kilometers south of the city of Gweru. BSR is situated approximately 2 kilometers from Trojan Mine.

Both BSR and Shangani Mine have been on care and maintenance since November 2008, while Trojan Mine restarted operations in October 2012 after nearly four years of care and maintenance.

BSR and Hunter’s Road are currently not in operation, while Trojan Mine, a division of TNM, is the only operational unit. However, the smelter is undergoing refurbishment at an estimated total cost of US$26.5 million, of which US$20 million was successfully raised on the Zimbabwean market in March 2015, via a Corporate Bond Issue.

Hunter’s Road is a deposit with an estimated 200kt of contained nickel. The deposit is situated between Gweru and Kwekwe, approximately 320 kilometres from Bindura. Hunter’s Road is at an advanced project stage and represents a future growth opportunity for BNC.

Nickel Ore Reserves

Trojan Mine

JORC compliant measured, indicated and inferred resource size 0.45 million tons of massive ores at a grade of 6.35% Ni and 6.35 million tons of disseminated ore at a grade of 0.76 % Ni equivalent to 76 700 tons of contained nickel.

Proved and Probable Ore Reserves – 2.45 million tons at an average grade of 0.94 % Ni equivalent to 23 100 tons of contained nickel.

Status – operational mine; restarted in 2012 following a $23m restructuring and recapitalization programme, after a four year care and maintenance period

FY2018 production – 6 620 tons (FY2017: 6 762 tons) nickel in concentrate, sold 6 470 tones (FY2017: 6 705 tones) nickel in concentrate

Shangani Mine

Measured, indicated and inferred resource size – 12.03 million tones at an average grade of 0.56 % Ni equivalent to 68 000 tons of contained nickel.

Status – mine on care and maintenance

Hunter’s Road Project

JORC compliant measured and indicated resource size – 200 404 tons of contained nickel

Status – project on hold, funding options being considered

Vision

To be a fully integrated low cost world-class business, producing and selling finished nickel metal and associated by-products.

Mission

To economically exploit our mineral resources in a safe and sustainable manner.

History

1956: first nickel deposit discovery at Trojan Mine, Bindura

1964: produced first concentrate

1966: Bindura Nickel Corporation Limited (BNC) was established by the Anglo American Corporation Group in Zimbabwe

1968: first production of nickel cathode

1971: Listed on the ZSE