Zimbabwe’s biggest nickel operation plans to list on the U.S. dollar-denominated stock exchange in Victoria Falls, as part of efforts to ignite foreign interest in the miner.
Bindura Nickel Corp. has requested shareholder approval to delist from the Zimbabwe Stock Exchange and list on the Victoria Falls Stock Exchange, or VFEX, it said in a circular to shareholders published in the Harare based daily, the Herald. The request follows board approval on Oct. 15.
“VFEX avails the company an exchange control regime designed to attract international investors with the ease which they can deal in shares listed thereon as well as repatriate both their capital and earnings in U.S. dollars,” the miner said. “After migrating to the VFEX, BNC will have a potential source of capital that matches its needs better than what is available through ZSE listing.”
VFEX is offering a raft of incentives including tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply to attract global capital. Since opening in October 2020, the bourse has attracted two listings, and may soon have a third from Caledonia Mining Corp., Zimbabwe’s second-largest gold producer by volume,
Kuvimba Mining House Ltd., owns a majority stake in the miner, situated in Bindura, north of the capital, Harare. It produced about 5,300 tons of nickel concentrate in the year through March, with the aim to boost that to 10,000 tons in the long term.
Shareholders will vote on the resolution at an extraordinary general meeting on Dec. 13.