CNM and their in-country operating subsidiary, Mabiza Resources, are completing an environmental and social impact assessment (ESIA) for the upgrades to the Munali Nickel Mine. A copy of the draft Environmental Impact Statement and its Appendices can be downloaded by clicking on the links below:
CNM has partnered with Jinchuan to restart mining operations at the Munali nickel mine, located 75 km south of Lusaka in Zambia. A lease and royalty agreement has been signed giving CNM full operational control of the Munali mine and the adjacent exploration area for a 10 year period with the option to extend by another 10 years at CNM’s discretion.
In excess of $180m has already been spent by the previous owners in developing the mine, installing a concentrator of outstanding quality, and bringing the mine into production. However, for a number of reasons, such as the use of the wrong geological model and hence the wrong mining method being employed, this lead to uneconomic operations when the nickel price fell, and the placing of the mine on care and maintenance at the end of 2011.
Working with the mine’s management team, CNM has spent the past two years conducting extensive evaluation and study work at Munali to put together a sustainable restart plan. During this time, a new geological model has been developed, a new JORC resource has been defined and a new mining method has been planned to extract the nickel from the ore body more efficiently and economically.
CNM are preparing the mine to be able restart within 3 months of the nickel market returning and receipt of development approval. The feasibility study for the mine restart was completed in March 2015 and all key mine infrastructure and operational permits are in place including personnel. In-country, the mine will be operated through CNM’s wholly owned operating company, Mabiza Resources Ltd, and will employ approximately 450 mine personnel once fully operational.
As part of the Agreement signed with Jinchuan, CNM will complete the original Relocation Action Plan (RAP) commitment by Albidon Zambia to relocate the local village and build the local infrastructure that is required.
CNM is also looking at value add plans for long-term nickel metal production. Optimisation studies are already underway with the potential to include an SX/EW circuit to produce a nickel metal, significantly reducing operating costs.
The new geological model, new resource estimate and new mining method have been designed to ensure that this time around, Munali’s operations will be sustainable. Additionally, CNM believe that this could be the cornerstone for a number of similar projects in the region.
At the Mining Indaba Conference in Feburary 2017, CNM Ltd were presented with first prize for the Investment Battlefield competition recognising them as one of the hottest emerging mining projects at 2017 Mining Indaba. To see our latest investor presentation and an interview with our CEO, Simon Purkiss, please see the links below: