Zimbabwe’s government-owned Bindura Nickel Corporation’s Trojan Nickel Mine, the country’s sole operating nickel mine, has been placed under administration, as announced in a government notice on Thursday.
This decision comes after seven months of production halt due to equipment failure and plummeting nickel prices.
The government, holding a 70% stake in the Trojan Nickel Mine, is taking administrative steps to address the challenges faced by Bindura Nickel Corporation, which employs approximately 1,100 individuals according to its latest annual report.
The reconstruction order and appointment of an administrator were published in the Government Gazette, signaling the commencement of administrative proceedings.
Despite being Zimbabwe’s only primary nickel producer, the country’s platinum miners also contribute to nickel production, primarily utilized in steelmaking processes.
Nickel prices have seen a significant decline from record highs exceeding $100,000 in 2022, driven by supply concerns arising from geopolitical tensions, to approximately $19,000 per ton in the current oversupplied market. This represents a 25% decrease from levels a year ago.
The challenging market conditions have prompted major producers like BHP Group to reassess their nickel businesses, with significant portions of Australian mine capacity experiencing disruptions.
Trojan mine’s nickel concentrate output plummeted to 1,314 metric tons in the last financial year, a substantial decrease from 3,180 metric tons the previous year.
The mine’s operations were suspended in September 2023 following equipment damage caused by a seismic event, leading to a delay in production restart despite the installation of new ore hoisting gear.
Bindura Nickel Corporation emphasized the need for capital mobilization to address operational challenges, particularly focusing on enhancing the availability of underground mining mobile equipment and upgrading the processing plant.
Established in 1964 under the Anglo American group, Trojan mine has faced operational hurdles over the years, with ownership transitioning to Bindura Nickel Corporation in 2003.
