Published: 10 July 2014

Bindura's Trojan Mine has resumed full production generating revenue of $65 million despite depressed global prices of nickel.

Trojan re-entered the ranks of nickel producers with significant production and profit performances in the financial year to 31 March 2014 although it had been under care and maintenance since November 2008.

The mine resumed production of nickel in concentrates and made its first delivery in terms of an off-take agreement with Glencore Xstrata in April 2013.

Metals analysts expect that during the current year, smelter operations at Trojan will resume with an aim to produce nickel leach alloy, adding to the company's revenues and operating profit.

"This is a positive spin for the Zimbabwean economy, and we expect nickel prices to be consistent till 2017," said Isaac Kwesu, the Chamber of Mines CEO.

With basic cash operating costs of $11 568 per tonne and a sustaining cash cost of $12 462 per tonne, the mine is positioned to remain cash-flow positive even if international nickel prices retreat from their current levels.

Nickel markets remained depressed for the greater part of last year, but spot nickel prices rose strongly when Indonesia, one of the world's leading nickel producing countries, prohibited the export of unprocessed concentrates.

Indonesia's aim is to increase value addition of its minerals, an objective also being pursued by the government of Zimbabwe.
- zbc

You might also want to read this

• Blanket Mine sets up oxygen plant, recoveries seen at 94%
• Eureka Gold Mine targets re-opening by April 2021
• Caledonia eyes 75 000 ounces gold output
• Gold weighs on June exports
• Zimbabwe poised for gold boom
• Police officers clash over lucrative Gokwe mine
• How to start your own gold mining company
• Gold mobilisation task force sent out
• Gold worth billions smuggled out of Africa
• Zimbabwe gold exports dip 17%