https://www.engineeringnews.co.za

BNC to issue $20m bond to fund smelter restart

Mwana Africa CEO Kalaa Mpinga

Mwana Africa CEO Kalaa Mpinga

1st December 2014

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Bindura Nickel Corporation (BNC), a subsidiary of Mwana Africa, will issue a $20-million bond to help fund the restart of its Bindura nickel smelter, in Zimbabwe.

BNC on Monday published a prospectus in relation to the bond, which would have a five-year term and which was expected to close late in January. Mwana Africa would provide a parent guarantee for the bond. 

BNC had also been granted Liquid Asset status by the Reserve Bank of Zimbabwe, which would require Zimbabwean banking and other financial institutions to invest a minimum percentage of their assets in the bond.

This was in addition to being granted Prescribed Asset status by Zimbabwe Finance and Economic Development Minister Patrick Chinamasa, last month. Zimbabwean asset managers were required to invest a certain minimum percentage of their assets under management into prescribed assets.

The proceeds of the bond would be used to help fund the restart of the Bindura smelter, which would enable BNC to produce a nickel leach alloy that was expected to improve the achievable nickel price and result in lower operating costs.

Mwana revealed in June that the smelter would likely resume operations in the first half of 2015. The estimated overall capital cost to restart the smelter was $26.5-million.

BNC planned to fund the balance of the restart costs from existing cash flows.

“We are pleased that BNC have published the prospectus in relation to the $20-million bond and look forward to updating the market on our progress over the coming months.

“We would like to thank the Reserve Bank of Zimbabwe, as being awarded Liquid Asset status allows BNC to widen the financial institutions that can support and participate in the bond, potentially increasing its liquidity and tradability. The restart of the smelter will allow in-country beneficiation and will provide significant benefits to BNC and Mwana,” commented Mwana CEO Kalaa Mpinga.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Rosond
Rosond

ROSOND provides fast, efficient, safe, and cost-effective drilling and grouting services to mining and exploration industries throughout Africa.

VISIT SHOWROOM 
AirNox Pty Ltd
AirNox Pty Ltd

AirNox (Pty) Ltd is a level 1 BBBEE manufacturer of complete AdBlue® solutions for operators of SCR diesel engines and AUS40 across South Africa...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.05 0.977s - 140pq - 2rq
Subscribe Now