BNC Resumes Production of Nickel, Main Component of Stainless Steel, and Increases Sales

Bindura Corporation (BNC) announced that its production has resumed and is generating good profits from the sale of nickel. Restrictions on the export of nickel ores in Indonesia led to an improvement in world prices for nickel, the main component in the production of stainless steel.

A spokesman for the parent company of Mwana mine in Africa said: "The significant improvement in cash flows stems from high nickel prices and is offset by solid production results following the move to higher grade mining."

The CEO of Mwana added: “I used to be confident that the nickel price would be weak in the near term, but now it is expected to rise in 2017. At the beginning of the last fiscal year, we felt the need for additional funding and a change in direction. However, improved cash flow from BNC has enabled us to undertake a fundamental restructuring to reduce corporate spending. "

The group launched a BNC smelter project with the aim of starting nickel alloy production in the first quarter of 2015. This will enable the company to create a production chain at better prices, which will offset the operating costs of the smelter and provide the advantage of significantly lower transportation costs during the nickel-to-metal phase.

Despite some temporary setbacks at the beginning of this year, Mwana made significant progress in the past fiscal year, resulting in a significant strengthening of the current financial structure. The Trojan mine has made good progress towards processing 195,000 tonnes per quarter, and the increase in production speaks to more consistent and efficient operations in the factories.