Sinokubonga Nkala
Nqobile Bhebhe, [email protected]
BINDURA Nickel Corporation (BNC), which is listed on the Victoria Falls Stock Exchange, has announced plans to resume operations after completing in-depth investigations into its financial and operational health.
The mining firm was placed under administration on May 2 following the issuance of a Reconstruction Order by the Government under the Reconstruction of State-Indebted Insolvent Companies Act (Chapter 24:27).
The Reconstruction Order, issued by the Minister of Justice, Legal and Parliamentary Affairs, Ziyambi Ziyambi, empowers the Government to intervene in cases of suspected fraud or mismanagement that jeopardise a State-indebted company’s ability to repay public funds.
Under this directive, Ms Mutsa Mollie Jean Remba was appointed as the administrator, with Mr Ian Mtetwa serving as her assistant.
Updating shareholders, BNC’s operations manager, Mr Jacob Kasumba, said the administrator is fulfilling the requirements of the Reconstruction Act, with several key activities already underway.
“In-depth investigations into the operations and financial health of BNC and TNML and measures to address these in the future are ongoing.
“These will in due course assist in the development of a sustainable restructuring plan. It has been noted that, once the model and funds are in place, mining development and further exploration will precede the resumption of operations,” said Mr Kasumba.
He noted that the administrator is actively including the State, employees, lenders, and regulators during this time, engaging with various stakeholders.
“The administrator is exploring various financial restructuring options to address the company’s debt obligations and improve its financial position. Staff optimisation and revision of HR costs is a key approach. Many more will be employed,” said Mr Kasumba.
“A comprehensive review of BNC’s operations is being conducted to identify potential cost-saving measures and opportunities for operational efficiency.”
Mr Kasumba noted that BNC remains committed to working diligently with the administrator to emerge from this challenging period stronger and more resilient.
BNC, Zimbabwe’s primary nickel producer, has faced significant hurdles, including declining global nickel prices, which have fallen by approximately 25 percent year-on-year.
Although the reconstruction order primarily targets Trojan Mine, its effects extend to the entire BNC group, resulting in the first-ever suspension of trading on the US dollar-denominated Victoria Falls Stock Exchange.
