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Kalaa Mpinga

Oliver Kazunga Senior Business Reporter
BINDURA Nickel Corporation has announced the publication of a prospectus for a $20 million bond issue to help fund the restart of its nickel smelter.

BNC is a subsidiary of Mwana Africa, a multi-commodity resource Pan African concern.

In a statement, Mwana Africa chief executive officer Kalaa Mpinga said they would provide a parent guarantee for the bond. “We’re 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,” he said.

Last month, Finance and Economic Development Minister Patrick Chinamasa granted BNC Prescribed Asset status making it possible for the company to seek funding through the marketing of a fixed-term debt instrument (the bond) to help fund the restart of the Bindura smelter.

The bond has been accorded the Prescribed Asset status meaning asset managers in Zimbabwe were required to invest a certain minimum percentage of their assets under management into prescribed assets.

In June this year, Mwana Africa announced that an independent study of an accelerated restart plan for the nickel smelter had been completed.

The study was conducted by engineering consulting firm Hatch Goba, which is involved in a technical and economic assessment of the potential refurbishment and restart plans of the smelter complex.

An estimated $26,5 million is required as the overall capital cost to execute the restart of the nickel smelter in Bindura.