Mabiza Resources and its major investor, Consolidated Nickel Mines Ltd (CNM), have announced the resumption of mining operations at the Munali nickel mine, located in southern Zambia. CNN is a privately-owned mining and development company that invests in African base metals projects.
The Munali processing plant, which incorporates Dense Media Separation (DMS) technology and diff erential fl otation (photo: CNM).
The refurbished mine was officially opened on 16 April by Edgar Lungu, President of Zambia, at a ceremony attended by key dignitaries from Government, including the Minister of Mines, Richard Musukwa, and the Minister of Health, Dr Chitalu Chilufya.
Since CNM became the new operator of Munali in 2014, the experienced team has invested over U$50 million to restart the mine. CNM has undertaken a complete reassessment of the project. All key technical aspects have been reviewed and re-engineered, from re-interpreting the orebody and changing the mining method to revising the metallurgical process with the introduction of Dense Media Separation (DMS) technology and differential flotation.
Munali comprises an underground mining operation extracting nickel sulphide ore, DMS technology and a standard flotation circuit to produce a 10-12 % nickel concentrate. The mine expects to ramp up production to steady-state levels of 60 000 t/a by Q4-2019. The mine is managed by an all-Zambian management team and currently has a workforce of 380 people, of whom 10 % are women.
It is reported to be the first mine in Africa to use Epiroc’s Minetruck MT54 high-capacity underground truck, with a load capacity of 54 tonnes. These trucks are designed for fast, productive haulage in substantial mining and construction operations where navigation through narrower tunnels is required.
“It is with great pride that we celebrate the official opening of Zambia’s newest nickel mine, the Munali nickel mine. Today marks a new beginning for the mine with a bright future ahead, backed by an experienced investor, Consolidated Nickel Mines,” said Matthew Banda, General Manager of Munali and Mabiza Resources, at the opening. “We are committed to being a responsible miner and ensuring the socio-economic benefits created by the mine are lasting and shared with our local communities and host government.”
Simon Purkiss, CEO of CNM, said the reopening of Munali was the culmination of nearly four years of hard work by the team and had involved a full reassessment of the project to de-risk it both technically and economically. “I’d like to thank all the stakeholders involved – our employees and contractors, local communities, business partners, regulatory authorities and Government – who have contributed to our plan to re-start operations at the Munali nickel mine. This is a tremendous accomplishment,” he said.
CNM acquired full operational control of Munali and the adjacent exploration area in 2015 through a 10-year lease and royalty agreement with Jinchuan, with an option to extend for a further 10 years.
Located 75 km south of Lusaka, the mine has excellent transport and communication links in a well-known mining jurisdiction.
In excess of U$180 million was spent by previous owners on developing Munali and bringing the mine into production in 2008. However, for a number of reasons, such as the use of the wrong geological model and hence the wrong mining method being employed, this led to uneconomic operations and, when the nickel price fell in 2011, the mine was placed on care and maintenance.
The Munali mine has been recognised by the Zambian Government as “the leading mining company for CSR in Zambia” for its innovative approach to corporate social responsibility (CSR).
A Resettlement Action Plan (RAP) has been successfully completed, with US$7,5 million spent on building new homes for the households impacted by the mine’s operations, as well as community infrastructure, including a new school, a new clinic, community water boreholes, a community dam and two bridges.
Alongside Munali’s CSR programmes, CNM has established the Musangu Foundation, providing seed money for the first year of business. The Musangu Foundation aims to create livelihoods in rural Africa in collaboration with the mining sector through a variety of projects. The projects reportedly move away from the typical ‘donor’ style, and instead embed business principles, generating sustainability and longevity.