REGIONAL resources group Mwana Africa says it is looking at ways of restarting operations at Bindura Nickel Corporation (BNC) on the back of recovering world market prices and a complementary domestic operating environment.

Operations at BNC were placed on care and maintenance in November 2008 as a the country tittered on the brink of economic collapse due to sanctions and political bickering while nickel prices collapsed as global demand plummeted.

London Metal Exchange (LME) prices peaked at just over US$52 000 per tonne in May 2007, on the back of strong demand led by China and low stocks.

However demand collapsed as the major world economies went into recession resulting in prices falling more than 80 percent by the end of 2008.

This forced Mwana Africa to suspend smelting operations at BNC in March 2009 but Chief Executive Officer Kalaa Mpinga says the group, which is listed on London’s Alternative Investment Market (AIM) is considering resuming operations subject to the availability of finance.

“Mwana Africa and BNC are in talks with a number of financiers about options for the restart of BNC. “We believe that current prices are sustainable, and in the longer term the outlook remains positive, with China expected to generate much of the growth in demand,” Mpinga told an industry bulletin.

Nickel prices are currently trading at around $18,800 per tonne, more than double the levels seen in March 2009.

Mpinga said discussions with potential financiers have already started adding the firm is also looking at potential joint ventures with China’s Jinchuan Group understood to have expressed an interest.

Mwana Africa acquired a 53 percent interest in BNC, which is listed on the Zimbabwe Stock Exchange, from Anglo American Corporation in 2003.

BNC is the largest integrated nickel miner in Southern African and owns the Shangani and Trojan mines as well as the Bindura smelter and refinery complex.

In addition to treating material from Trojan and Shangani, the Bindura plant has toll nickel treatment arrangements with third parties in Botswana, South Africa and Zambia to utilise spare capacity.

Mpinga said the recovery in prices which are expected to remain steady throughout the year as well as an improvement in the domestic operating environment should enable BNC to realise its full potential.

“The removal of foreign exchange surrender requirements (by the government of Zimbabwe) has given companies over 100 percent of foreign exchange earnings.

“BNC remains a unique asset as the only integrated nickel mine, smelter and refinery in Southern Africa, with the potential to become a major regional tolling hub,” Mpinga said.