Munali Nickel Mine

CNM acquired full operational control of the Munali Nickel Mine and 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 in Zambia, the mine has excellent transport and communication links in a well-known mining jurisdiction.
Full financing has now been secured to restart operations.

Background

In excess of $180 million has been spent by previous owners on developing Munali 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 led to uneconomic operations and when the nickel price fell in 2011, the mine was placed on care and maintenance.

CNM Turn Around

Over the past four years, working with the mine’s management team, CNM has conducted extensive evaluation and study work at Munali to put together a sustainable restart plan. A new geological model has been developed, a new JORC resource of 6Mt at 1% Ni has been defined and a new mining method has been employed to extract the nickel from the orebody more efficiently and economically. The restart is fully financed and initial operations commenced in H2 2018.

Zambia’s Next Nickel Producer

First nickel concentrate was produced in Q1 2019.  The mine aims to ramp-up operations to steady-state levels by Q3 2019, targeting 60,000tpa of ore and 25,000 tonnes of nickel concentrate by the end of 2019.

Munali Optimisation: Long Term Sustainability

CNM is investigation the possibility for further value-add, with the potential for long-term nickel sulphate or nickel metal production.  In addition, CNM will continue to identify and secure other assets to further diversify their portfolio with a potential IPO listing on the cards in late 2019.