Bindura Nickel Corporation’s Trojan nickel mine was placed under administration, according to a government notice, seven months after halting production due to equipment failure and low prices.
Zimbabwe’s government owns 70% of Bindura Nickel Corporation’s Trojan nickel mine, which employs about 1 100 people, according to Bindura’s latest annual report.
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Prices are currently 25% down on their levels a year ago.
Low prices have forced top global producer BHP Group to review its nickel business, warning that 30% of Australian mine capacity had gone offline and another 30% was in trouble due to the squeeze on margins.
Trojan Mine’s nickel concentrate output plunged to 1 314 metric tonnes in its last financial year, which ended in March 2024, down from 3 180 metric tonnes the year before.
This was after the mine suspended operations last September following the damage suffered by its ore hoisting equipment during a seismic event.
The mine has capacity to produce 5 500 metric tonnes of nickel concentrate annually.
On April 29, the company said while it had managed to install new ore hoisting gear, it would delay restarting mining operations due to low prices and high costs of inputs such as electricity.
“BNC needs to mobilise the requisite capital for retooling, with particular emphasis on increasing the availability of underground mining mobile equipment and the processing plant,” it said on Thursday.
Trojan Mine started production in 1964 under the Anglo American group, which sold the asset in 2003. — mining.com
