HomeNewsRioZim seeks $2m

RioZim seeks $2m


ZIMBABWE Stock Exchange-listed concern RioZim has announced it requires $2 million monthly in the short term to process 1 200 tonnes of nickel at Empress Nickel Refinery (ENR), an official has said.

Report by Business Reporter

ENR official Clever Kariwo told analysts touring the group’s plant in Kadoma recently that the refinery, which switched off in April, planned to process 14 400 tonnes per year.

Production is scheduled to resume at the end of this month and the group expects net income of $1 million a month.

ENR, Kariwo said, sees this target being achieved within six months should RioZim source funds, adding that $5 million would be required to boost production in the medium term.

He said the ENR is currently trying to get metals out of the slag dump, as it carries variable metals, adding that the group had already recovered 450 tonnes.

Following the termination of the toll-refining agreement with Centametall, RioZim was now negotiating to buy matte directly from the Botswana-based BCL and Tati.

In August RioZim said it would settle the outstanding $6,6 million owed to Centametall over 66 monthly installments starting in July 2014, after termination of a toll-refining contract.

The contract was terminated last July.

Kariwo said the group had a dedicated line for the refinery connected directly to the national grid, which was priced at 9,02c per kilowatt hour, in a bid to mitigate effects of frequent power outages.

Explaining the production process, Kariwo said the extraction of nickel from ore followed much the same pattern as copper. The major differences in equipment were the use of higher-temperature refractories and the increased cooling required, accommodating higher operating temperatures in nickel production.

Meanwhile RioZim is understood to be negotiating for the sale of reverts with Mineral Commerce Services of Australia and this is estimated to generate $8 million in cashflows.

Negotiations were also underway for the sale of off-specs
35 tonnes of Nickel estimated at $520 000 and 100 tonnes of copper estimated at $720 000 is also currently being negotiated.

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