In a significant move aimed at salvaging Zimbabwe’s sole integrated nickel producer, Bindura Nickel Corporation Limited (BNC) has called for the first statutory meetings of creditors and members under the Insolvency Act [Chapter 6:04], Mining Zimbabwe can report.
By Rudairo Mapuranga
As per a notice issued by the Administrator, Mr. Mutsa M.J. Remba, the meetings will be held on April 23, 2025, at Chapman Golf Club in Harare. The creditors’ meeting is scheduled for 10:00 AM, followed by the members’ meeting at 2:30 PM.
These meetings are being held in accordance with Section 194 of the Insolvency Act (read with Section 191), also known as the Reconstruction Act. They aim to provide an opportunity for creditors to prove their claims and for members to receive a comprehensive update on the proposed reconstruction plan and the prospects of the Companies’ return to solvency.
To be eligible to claim any debts owed, creditors must complete and submit an Affidavit Form for Proof of Claim, available from the Companies’ offices or via email request. Supporting documents must be filed in duplicate at the Master of the High Court.
Reconstruction Mandate and Legal Moratorium
BNC and Trojan Nickel Mine were placed under reconstruction following a Government Reconstruction Order in terms of the Reconstruction of State-Indebted Insolvent Companies Act [Cap 24:27], which transferred control of the companies to the Administrator. The order imposes a moratorium on legal proceedings and asset disposals, unless approved by the Administrator, as part of efforts to stabilize the entities and allow for financial recovery.
Trading Suspension on VFEX
Following this restructuring development, BNC shares were voluntarily suspended from trading on the Victoria Falls Stock Exchange (VFEX), effective May 6, 2024. This decision, announced by VFEX Head of Markets Robert Mubaiwa, was aligned with provisions under the Reconstruction Act and supported by the Securities and Exchange Commission of Zimbabwe.
“Although the Reconstruction Order was issued against Trojan Nickel Mine Limited, BNC as the holding company is equally affected by the order pursuant to Section 4(3)(a) of the Reconstruction Act,” Mubaiwa stated. “As a result, the Administrator applied for the voluntary suspension in trading of BNC shares.”
Despite the suspension, BNC remains obliged to meet all its shareholder and VFEX obligations under Section 9 of the VFEX Listings Requirements during the reconstruction.
Financial Woes Rooted in Operational and Market Challenges
BNC’s placement under reconstruction reflects the broader financial distress facing Zimbabwe’s mining sector. The company, majority-owned by state-controlled Kuvimba Mining House, has been severely impacted by falling global nickel prices and rising operational costs.
Nickel prices, which peaked at a record US$100,000 per tonne in 2022 due to geopolitical tensions, have since plummeted to under US$19,000 per tonne—a 25% year-on-year decline. The drop has rendered BNC’s operations economically unsustainable, with energy costs alone having surged by 40% in 2023.
Operations at the Trojan Nickel Mine ceased last year due to the breakdown of a critical ore-hoisting component, the Sub-Vertical Rock Winder (SVR) bull gear. Although a replacement has been installed, full production is yet to resume due to ongoing technical setbacks.
The upcoming creditors and members meetings will be crucial in determining the viability of the proposed reconstruction plan. Stakeholders will be closely monitoring whether this process can revive Zimbabwe’s flagship nickel operation and stabilize the company amid global market headwinds.
