Albidon to resume operations Written by Nchima Nchito Jr

[bingogo]

Albidon to resume operations
Written by Nchima Nchito Jr
ALBIDON Zambia limited is scheduled to resume operations at its Munali nickel project next month after a seven-month period of care and maintenance for the mine.

Recently, Barclays Bank Zambia entered into a financing agreement of a reported value of US $12.6 million with Munali Nickel Mine’s majority shareholder, Jinchuan Group of China, to finance the purchasing of new equipment.

Munali Nickel Mine was placed under care and maintenance in March this year when operations where suspended due to depressed global nickel prices which impacted on the viability of the business at the time.

According to mining weekly, Shaun Vokes, Munali's care-and-maintenance manager said Jinchuan would restart operations at the end of October or early November.

“With this re-financing arrangement for existing underground equipment, we expect the mine to resume operations late October or early November,” he said.

Vokes said the Jinchuan Group was now trying to arrange finance for working capital before resuming operations at the mine.

Ore production at Munali in the first two months of 2009 was 74,000 tonnes, below the forecast 87,000 tonnes, mainly due to a lack of equipment and lower grades.

Munali Nickel Mine, located in southern Zambia, had forecast to produce 10,000 tonnes of nickel each year before its shutdown.

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