Harare — PAN-AFRICAN multi-commodity resources company Mwana Africa says it will spend US$170 million to develop its Hunters Road nickel project.
Poor funding has mainly constrained the venture, mooted a few years ago.
Mwana Africa group chief executive Mr Kalaa Mpinga said: "The cost of bringing Hunters Road to 10 000 tonnes of nickel per year as part of a three-phase project is estimated at around US$170 million."
Mwana Africa intends to produce 2 500 tonnes of nickel concentrates per year in the initial phase at a cost of US$67 million.
Feasibility studies carried out in 2007 found that the project has 243 000 tonnes of metal in measured and indicated resources.
The company decided to embark on the project in order to augment ore supplies to its Bindura Nickel Smelter and Refinery complex.
Hunters Road deposits lie within the Gweru-Midlands South Greenstone belt.
Nickel deposits within the project, seen as being of superior grade, will provide BNC with additional feeding stock for its refineries.
The nickel deposits were discovered by means of a soil geochemical anomaly and were initially explored through trenches and a feasibility study was completed in 2008.
Mr Mpinga recently said current conditions were supportive of a restart of BNC's operations.
BNC presently mines nickel at the Trojan and Shangani mines, but reserves there are said to be declining.
Meanwhile, Mwana Africa is looking at ways to finance the restart of BNC and it was recently reported that the group is at the verge of clinching a deal to finance its operations.
The deal has been linked to a London Stock Exchange-listed company with interests in mining.
The mining group also sealed a deal with the Industrial Development Corporation of South Africa to finance operations at its subsidiary company, Freda Rebecca.
IDC South Africa approved the provision of up to US$10 million debt funding for the Freda Rebecca gold mine.
The recapitalisation of Hunters Road and the revival of the Zimbabwe Iron and Steel Company is expected to create jobs in the Midlands Province and Redclif town is also expected to expand.
