BNC to ramp up production, return to profitability

28 Feb, 2023 - 00:02 0 Views
BNC to ramp up production, return to profitability

eBusiness Weekly

Enacy Mapakame

Victoria Falls Stock Exchange (VFEX) listed Bindura Nickel Corporation says it will focus on ramping up production and return to profitability during the last quarter of the current financial year (FY23).

This will help the resources group offset the major breakdown encountered during the quarter to December 31, 2022 at Trojan Nickel Mine’s Sub-vertical Rock Winder (SVR), which is used to hoist material (ore and waste) from the underground mining operations.

According to Bindura, the breakdown occurred on October 10, 2022 following a seismic event that caused the SVR’s centre bearing to overheat due to misalignment. The breakdown had an adverse impact on nickel production.

Despite the disruption to operations, the group is upbeat about recovery and return to profitability.

“The last quarter of Financial Year (“FY”) 2023 will be focused on ramping up ore volumes, increasing Nickel production, stabilising mining operations, and returning the business to profitability, in the aftermath of the above-mentioned SVR breakdown and its recommissioning,” said the group in a trading update for the quarter to December 2022.

The SVR was recommissioned in November last year.

“Tonnages of ore hoisted will, however, be within the constraints imposed by the SVR bull gear,” said Bindura.

During the third quarter period, tonnes ore mined decreased by 18 percent due to the SVR breakdown and the delay in the delivery of the underground mining mobile equipment required for the transition from a high-grade – low volume to a high volume – low-grade mining strategy.

The delay in the delivery of the equipment was due to disruptions in the global supply chains, as a result of the protracted effects of the COVID-19 pandemic and the ongoing geo-political tensions related to the Russo-Ukraine conflict.

Tonnes ore milled decreased by 17 percent in line with the decrease in the tonnes ore mined. Head grade declined by 28 percent from the 1,35 percent recorded in the previous year due to the reduction in the footprint of the high-grade massives.

Nickel in concentrate produced was 44 percent lower than for the same period last year due to lower milled tonnage and grade of mined ore.

 

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