via Bindura Nickel gets prescribed asset status | The Herald 24 November 2014
Government has granted Bindura Nickel Corporation a prescribed asset status for its $20 million bond. The development means that the Zimbabwe Stock Exchange-listed company will go ahead to float the $20 million bond with proceeds earmarked towards the restart of its smelter. “Mwana is pleased to announce that its 74,73 percent-owned subsidiary, BNC, has been granted prescribed asset status by the Minister of Finance and Economic Development Patrick Chinamasa and, as a result, will shortly be seeking funding through the marketing of a fixed-term debt instrument to help fund the restart of the Bindura smelter,” said the company in a statement.
The bond has been accorded PA status meaning that Zimbabwean asset managers are required to invest a certain minimum percentage of their assets under management into prescribed assets. A 12-month accelerated restart plan was independently reviewed by Hatch Goba earlier in 2014.
Kalaa Mpinga, CEO of Mwana, commented: “I am pleased at the approval and support received from the Government of Zimbabwe.
“Being awarded prescribed asset status not only provides additional financial support but shows Mwana’s continued contribution in Zimbabwe is being recognised.”
The restart is anticipated to increase revenue per tonne of contained nickel by between 15 percent and 20 percent, as nickel in leach alloy is free from impurities such as magnesium oxide and therefore does not attract price penalties.
Furthermore, leach alloy transport requires 70 percent fewer trucks compared to transporting nickel concentrate.
Therefore, the smelter restart will significantly cut operating costs.
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