BNC is controlled by pan-African resources company Mwana Africa which has operations in Zimbabwe and South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo (DRC), Angola, Ghana and Bostwana.
The agreement will cover all the nickel concentrate to be produced following the re-start of operations at the Trojan Mine.
In return, Glencore will pay a London Metal Exchange (LME) linked nickel price on agreed terms for final contained nickel.
Mwana Africa CEO Kalaa Mpinga said the deal is “a very significant step toward the re-start of operations at the Trojan Mine and, in due course, unlocking the unique potential of Bindura’s other nickel assets”.
“We look forward to working with Glencore to deliver long-term shareholder value following their re-start,” he said.
Once financing is secured to enable the restart at Trojan, BNC expects to recommence mining at Trojan, initially at a rate of 10,000 tonnes per month ramping up to 70,000 tonnes per month over a period of 12 months.
In the outlook, BNC expects to mine about 870,000 tonnes of ore per year, at an average head grade of 0.90% driven by Trojan Mine.
Headquartered in Switzerland, Glencore is one of the world’s largest and most geographically diverse suppliers of commodities and raw materials to industrial consumers.