$40m sought for Munali Nickel
Published On May 13, 2015 » 2862 Views» By Davies M.M Chanda » Business, Stories
 0 stars
Register to vote!

UNITED Kingdom-based Consolidated Nickel Mines (CNM) plans to raise US$40 million on the Toronto Stock Exchange to resume operations at Munali Nickel Mine project in Southern Province.
The mine has been under care and maintenance for close to four years following the paralysing of the operations in 2011 due to several challenges including unsustainable low nickel metal prices on the world market.
Mabiza Resources Limited general manager Matthew Banda said currently the investor group was sourcing for US$40 million to restart operations at Munali Nickel Mine.
“CNM have been financing the project since December last year and plan to raise funds to restart the operations at Toronto Stock Exchange,” he said
Mr Banda said this in response to a Press query.
Mr Banda said the mining company was discussing with the Government to ensure all stakeholders yield positive returns when operations commence.
“Once operational, the mine will employ about 440 people directly and about 350 in various contracts. I am happy to advise that the feasibility study on Munali Nickel Mine to restart operations were completed in March 2015,” he said.
Mr Banda said the results of the study are positive, however, the proposed changes to the mineral royalty and taxation regime of nine per cent and 30 per cent for corporate tax provide a negative impact on the project.
He said the study reviewed the changes in the underground mining method and addition of a Dense Media Separation (DMS) plant to improve recoveries before processing the ore.
The study reviewed the change in the underground mining method and the addition of a DMS plant to improve recoveries before processing the ore.
CNM took over the operations of Munali Nickel Mine project on December 1, 2014 after concluding a long-term deal with Jinchuan Group.
The Chinese firm entered into a long-term joint venture with the British mining company on May 12 2014 to revive operations at the mine situated in Mazabuka.
The mine which was then co-owned by Jinchuan and Albidon Limited of Australia will now be called Mabiza Resources Limited.
At full operations, Mabiza expects to provide long term direct employment to about 450 people.
He explained that all the workers that were under Albidon Mine were paid their dues.

Share this post

About The Author