![[Zimbabwe] Lifting of ban on chrome increases exports and revenue](chromite.jpg)
[Zimbabwe] Lifting of ban on chrome increases exports and revenue
Zimbabwe has recorded an increase in exports and revenue from chrome ore and high carbon ferrochrome following the lifting of an export ban instituted in June last year.
The country generated $500 million in revenue after exporting 315 500 tonnes of high-carbon ferrochrome and 197 700 tonnes of chrome ore.
Miners are projected to produce half-a-billion tonnes of chrome ore in 2017. The ban, which was imposed in 2011, was meant to encourage value addition and beneficiation of the mineral in line with the country’s economic blue-print.
The sector was also slapped with a 20 percent export tax on raw chrome. However, the decision to ban ore exports was reversed to boost foreign currency earnings and support small-scale miners.
Smelters suffered the most from the ban. Most chrome ore stocks accrued in the five-year period through 2015.
Minerals Marketing Corporation of Zimbabwe (MMCZ) acting general manager Mr Masimba Chandavengerwa told The Sunday Mail Business last week that the new dispensation will help licensed chrome smelters to export up to 30 million tonnes of chrome ore over and above the current export of processed ferrochrome.
“Since the lifting of the ban, which was instituted in April 2011, we expect licensed chrome smelters to export 30 million tonnes of lumpy, fines and concentrates. To date, we have exported about 315 500 tonnes of chrome since the lifting of the ban last year,” he said.
But most of the established smelting companies have been operating below capacity owing to high operating costs and a drop in international commodity prices.
“Apart from high operating costs, established smelting companies are allegedly offering prices that are below the mining costs. There is also the issue of limited access to cheap credit lines, poor road and rail infrastructure, inadequate and obsolete mining equipment,” said Mr Chandavengerwa.
Mines and Mining Development Deputy Minister Engineer Fred Moyo said Government is encouraging indigenous people and previously disadvantaged groups to fully participate in the economic affairs of the country.
He noted that under the current regime, chrome ore producers are allowed to export excess ore after meeting local demand.
“Each chrome ore smelting company shall enter into an agreement with the Ministry of Mines and Mining Development to set the minimum feedstock thresholds (based on a three-year average) into ferrochrome production for purposes of determining exportable excess chrome ore,” he said.
It is understood that the smelters have made a commitment to beneficiate nearly 100 000 tonnes of chrome ore per month.
“The smelters, your Zimasco, Zimalloys, Afrochine, told us that they have the capacity to process almost 100 000 tonnes monthly, so the challenge is from the producers, and we are encouraging them to ensure that they feed those smelters,” he said.
