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Business Reporter
MWANA Africa says sales of nickel in concentrate at Bindura Nickel Corporation rose by 49 percent to 2 072 tonnes in the fourth quarter as refurbished equipment was brought back into operation.

The AIM listed miner said mill head grade at BNC was 44 percent higher at 1,669 percent nickel as better equipment availability allowed greater mining in the massives in line with the mine plan.

Mwana said in a previous operations update that production at its nickel mining subsidiary had been hampered by some mobile equipment, which was briefly taken out to be refurbished.

Mill throughput at BNC’ Trojan Mine fell to 140 045t as production was constrained by a temporary hoist breakdown, which has been resolved, Mwana said in an update for the quarter to March 31 2014.

Mwana Africa said that average nickel price received for the metal in concentrates was $9 489/t from $10 313/t in the last quarter.

All-in sustaining costs reduced significantly by 36,5 percent to $7 293/t contained nickel compared to $11,491/t), as greater nickel production contributed to lower unit costs of operations.

Mwana Africa chairman Mr Kalaa Mpinga said that work at Trojan Nickel Mine had progressed steadily, as the refurbishment of equipment programme begins to have a positive impact.

“While the global nickel price declined in the quarter, all-in sustaining costs reduced by 36,5 percent, as greater nickel production contributed to lower unit costs,” Mr Mpinga said yesterday.

Mwana said that in February it completed the raising of $20 million through the issue of a five-year bond bearing a 10 percent coupon.

The funds will be used to re-start the smelter during the new financial year and initial work has progressed well.

It is expected that the smelter will help reduce waste and significantly reduce cost of transport in what is seen resulting in savings of at least $1 million per month, which would go to bottom line.

Commenting on its gold mining unit, Freda Rebecca, Mwana said output increased 0,42 percent to 14,358 ounces from 14,298 (Q3 2015).

Gold recovery increased to 83 percent from 78 percent (Q3 2015), which resulted in higher gold production quarter on quarter.

Tonnes milled decreased by 8 percent to 297,953t (Q3 2015 – 322,216t) as mill throughput and running time both reduced by 4 percent.

Average feed grade for quarter 4 2015 was 4 percent lower on prior quarter, as the low grade zone persisted longer than estimated in the gold rich ores of the new mining plan Freda is using.

“At Freda Rebecca we have achieved steady production, although the need to work through low-grade zones as development moved towards new high-grade and main stopes persisted.

“While gold prices declined progressively throughout the financial year, the company was able to achieve a 4 percent reduction in Freda Rebecca’s cash costs,” the Mwana Africa chair said.

He said focus remains on further curtailing of costs and grade control as mining moves increasingly into the higher-grade stopes.