Increased demand for stainless steel products in China, one of the world’s fastest expanding economies, helped boost profits for Bindura Nickel Corporation, once owned by the giant Anglo-American Corporation but now under an indigenous consortium which includes Zimbabwean and Congolese businessmen.
Though gross nickel production was down from 11 164.7 tonnes in 2002 to 10 104.5 tonnes last year, net profit was up from $403 million to $26 billion.
Sales improved from $16.8 billion to $70.6 billion with operating profit shooting up from $119 million to $40.3 billion. Net profit was down to $26 billion after the company paid $10.1 billion in taxes.
The company says demand for nickel grew by 6.2 percent because of increased consumption in the Asian and Chinese markets.
The price also improved from US$3.72 per pound in January 2003 to US$7.50 in December.
The company realised an average price of US$4.23 per pound which was a 38 percent increase from the previous year.
It says ore production was down by 4 percent largely because of the loss of the Far West Orebody at Shangani. Nickel concentrate production was however similar to that of the previous year because of good grades at Trojan.
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