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Business Reporter
BINDURA Nickel Corporation has to date received $17,9 million from the $20 million bond floated to raise funds to finance its $26,5 million smelter restart project.

Africa’s only integrated nickel miner said in its results for the full year to March 2015 that it had received $16,4 million of bond issue proceeds by March 31, 2015.

An additional $1,5 million was received from bond holders on the July 10 this year while undertakings were made for the balance of $2,1 million to be paid by September.

The bond was fully subscribed and closed on March 2, 2015. The balance of the $26,5 million required for the project, will come from cash generated through operations.

The restart of the smelter will reduce costs by an estimated $12 million annually for the Zimbabwe Stock Exchange-listed miner in what should prop up waning profitability.

The smelter, once restarted, would increase revenue per tonne of nickel export by 15 percent and 20 percent. This is because the company would now export 70 percent leach alloy as opposed to the current situation where the nickel miner is selling nickel concentrate. The smelter restart project is now expected to be finalised in the first quarter of 2016, with the first sale of leach alloy forecast to start in April of the same year.

Negotiations are underway with various parties for an off-take agreement, the group said. BNC said the timing of the conclusion of such agreements is sensitive to the current state of the nickel market and directors will conclude such negotiations when appropriate.