According to a report compiled by SRK Consulting, resumption of operations at the closed mine were both realistic and achievable. SRK was hired by Mwana Africa to undertake an audit of resources and reserves at Trojan which was closed a few years ago due to viability problems. Mwana said the consultant’s report was now out.
“SRK considers the business plan for the restart of operations at Trojan to be both realistic and achievable.”
It said the mine had the potential to produce nickel concentrate valued at US$64 million a year from 7 800 tonnes of the base metal. SRK also established that the power and water infrastructure at the mine was well established while the road network provided good access. The consultant established that Trojan was sitting on 3.5million tonnes of ore with a high potential to increase the resource at depth.
Mwana Africa said the report did not cover Shangani Mine or the restart of the Bindura smelter and refinery complex which were closed at the same time.
“Additional aspects of the Trojan restart programme, including reaching settlement with remaining creditors, and reassessment of staffing levels, for which additional investment will be required, have not been reviewed by SRK,” the report said.
Mwana Africa Chief Executive Officer Kalaa Mpinga said the resumption of operations at Trojan was the first step in rehabilitating the company’s nickel interests in Zimbabwe.
“The SRK report endorses our reserves and resources estimates and confirms the economic viability of our plan to restart the Trojan mine. The current business plan is projected to generate significant cash flow and we are confident of the potential to expand the resource base below current mining levels through a planned drilling program for which costs have been included in the business plan. We believe that the restart of mining at Trojan is but the first step in the rehabilitation and development of Bindura’s other nickel assets.”
Post published in: Economy