KALONDE NYATI, London
CONSOLIDATED Nickel Mine (CNM) Limited is soon expected to finalise the raising of capital to restart production of nickel by the end of the year at its subsidiary, Munali Nickel Mine in Mazabuka.
About US$40 million is expected to be invested to start operations at initial stage.
CNM Limited managing director Simon Purkiss said in an interview that plans to start producing nickel concentrate at the mine have advanced with financing of the project expected to be concluded soon.
“We are looking at having the finance in place by July of this year and to then be back in production by the end of the year,” Mr Purkiss said in an interview.
The Munali Nickel Mine has been dormant since November 2011, when it closed down due to poor performance by its previous owners, resulting in British-based firm CNM acquiring the mine.
Mr Purkiss said the company is in the process of acquiring equipment, tendering for contractors and has advertised for employment to re-start operations.
He said 60,000 tonnes of nickel will be produced per month.
Recently, Munali Nickel Mine general manager Matthew Banda said a total of US$100 million is expected to be invested to start full operations and will generate 400 direct jobs and 300 indirect jobs through contractors to be engaged by the mine.
Once operational, the mine will boost economic activity and broaden the revenue base in Mazabuka, whose economy is currently driven by sugar production.