London, England — 30 May 2013
Nickel, gold and diamond producer Mwana Africa plc is considering restarting its nickel smelter in north-eastern Zimbabwe after a drop in prices eroded profit margins for supplying the metal as concentrate.
“Nickel at this level is putting a lot of stress on the system, particularly when exporting concentrate,” CEO Kalaa Mpinga said in an interview with Bloomberg News at the African Development Bank annual meeting in Marrakesh, Morocco. “It will increase pressure on us to restart our smelter and refinery as soon as possible.”
Mwana’s Bindura site is the only integrated nickel mine, smelter and refinery operation in Africa, according to the London-based company’s website. The price of nickel for delivery in three months has dropped 13% to US$14,840/t since the start of 2013 in London Metal Exchange trading.
“In the next three to four months, we will be able to make a decision,” said Mpinga. “It is one of our foremost priorities.”
Source: Bloomberg News. For more information, click here.