CAPE TOWN — Mutapa Energy Minerals, an entity under the umbrella of the Mutapa Investment Fund (MIF), has clarified that Bindura Nickel Company (BNC) remains under administration purely for business reasons, as the current oversupplied market does not support the economically viable operation of the mine, Mining Zimbabwe can report.
By Ryan Chigoche
BNC, Zimbabwe’s only nickel mine, was placed under administration in May 2024 following a reconstruction order issued by the Government of Zimbabwe. The move came in response to severe financial distress, operational challenges, and a collapse in global nickel prices.
At the time of the government order, nickel prices had fallen sharply from record highs above $100,000 per metric tonne in 2022, driven by expectations of reduced supplies from major producer Russia following its invasion of Ukraine, to around $17,000 per tonne in an oversupplied market. By mid-February 2026, prices were trading at $17,500–$18,000 per metric tonne on the London Metal Exchange, levels that remain far below what would make mining at BNC economically viable.
It is against this backdrop that Mutapa Energy Minerals Chief Executive Innocent Rukweza explained that current market conditions do not support reopening the mine, clarifying why BNC continues to operate under administration.
“BNC is in that position because the prices are not supportive of the economics of how the mine should operate. It is one of the deepest mines we have, exceeding one kilometre, and the grades have been suppressed. Indonesia, which has open-pit resources at a very high grade, has been flooding the market, and its economics permit it to sustain a price of less than US$17,000, which is the same cost for us to mine or extract a tonne out of BNC.
“And prices are way below that. So it was a decision that was business-based, not for any other reason.”
Following the administration order, Bindura Nickel Corporation made significant progress by convening its first statutory meetings with creditors and shareholders in April 2025.
These meetings formed part of the formal reconstruction process, during which the company’s financial position was presented, the administrator’s actions to date were discussed, and the next steps for restructuring were outlined.
The process involved a detailed review of the company’s operations and finances, the development of a sustainable plan to address debts, and engagement with stakeholders on the way forward. Together, these steps demonstrated a structured approach to stabilising operations and preserving value for all stakeholders.
While the process demonstrated a structured approach to stabilising operations and preserving value for all stakeholders, all these efforts may prove in vain, as nickel prices are projected to remain relatively subdued over the next five years.
Supply surpluses, particularly from Indonesia, are likely to keep prices range-bound, while gradual increases in demand from stainless steel and electric vehicle battery production may support only a slow upward trend.
Market forecasts project London Metal Exchange (LME) prices at around US$15,860 per tonne in 2026, rising to approximately US$16,770 per tonne in 2027, with further modest gains possible toward 2030–2031 if demand strengthens or supply is constrained.
Significant price spikes are unlikely without major shifts in global supply or demand, meaning BNC could face a prolonged period out of operation.
Indonesia and China currently control the global nickel market. Indonesia acts as the dominant supplier (over 60% of global output), while Chinese firms control roughly 75% of Indonesian smelting capacity.
