Mining: Plinian seeks to reopen mine

PLINIAN Capital, founded by former Lonmin chief executive Brad Mills, plans to raise $40 million (R475m) from private equity funds to restart a Zambian nickel mine where operations ceased in 2012. The company was in talks with investors, Anton Mauve, a partner at London-based Plinian, said last week. He declined to name them. Plinian is hoping to re-open the Munali nickel mine, about 60km south of Lusaka. Previous owners have halted operations twice since it opened in 2008 as they struggled with its geology and falling nickel prices. Work was most recently suspended in 2012. “Munali nickel mine is a good example of the kind of distressed asset that we invest in,” Mauve said. “We have a clear understanding of why the operations failed previously”, and studies had identified potential significant operational improvements, he said. – Bloomberg