Congo Resources

[Berliner]

MWANA/Bindura Nickel attractive for China

http://allafrica.com/stories/200703060064.html

March 6, 2007

Harare

NICKEL giant Bindura Nickel Corporation has resolved to finance a pilot project for the Hunter's Road venture with its own resources pending finalisation of their partnership deal with a potential investor.

Insiders said the matter would be brought before the shareholders at the company's annual general meeting scheduled for next month.

BNC sources said the initiative would make the project more attractive to the investor community.

"The management is still working on money required to kick-start the pilot project and this would be subject to shareholders' approval," said sources.

BNC is locked in negotiations with a Chinese investor for the development of the mammoth US$100 million project.

The Hunter's Road project involves construction of a new open-cast mine between Kwekwe and Gweru where at least 30 million tonnes of nickel deposits containing 125 000 tonnes of recoverable nickel were discovered.

Feasibility studies at the site have been completed and have shown potential to "build and operate" a viable mine.

While Hunter's Road deposits are of marginal ore grade, they have the potential to supply additional feedstock to the BNC smelter and refinery

BNC's two operational mines, Trojan and Shangani, are unable to produce sufficient ore to operate the plant at full capacity.

Although some of the shortfalls are currently filled from external toll contracts, it is more economical for BNC to produce concentrate from its own mines.

This makes the Hunter's Road more attractive to Bindura and its major shareholder, Mwana Africa.

....................................................


BNC to Get Boost From New Discovery

Zimbabwe Independent (Harare)
NEWS
March 2, 2007
Posted to the web March 2, 2007

By Paul Nyakazeya

Bindura Nickel Corporation (BNC) this week said nickel reserves had been boosted by the discovery of ore at its Hunters Road claim, saying this would extend the mine's lifespan from 2013 to 2022.

The Hunters Road claim is between Kwekwe and Gweru and extraction of nickel ore from the mine is likely to begin in 2011.

A BNC official said the a feasibility study completed last year had revealed that Hunters Road had up to 30 million tonnes of ore.

The officials said the resources discovered at Hunters Road were worth over US$3 billion.

BNC managing director, Thomas Mashungupa, refused to comment when contacted this week.

"Regrettably we do not have any comments at this stage," Mashungupa said in a written response to questions from businessdigest.

Sources said key infrastructure like roads, rail and electricity were already in place and the company was ready to start mining.

The Hunters Road site is 2km from the main Harare-Bulawayo highway, and is connected to a 132 kilovolt electricity transmission line.

BNC produces around 8 000 tonnes of nickel annually, earning the country an average of US$100 million.