Source: Zimasco targets 560 000 tonnes of chrome – Sunday News January 28, 2018
Munyaradzi Musiiwa, Business Correspondent
KWEKWE-based chrome smelting company Zimbabwe Mining and Smelting Company (Zimasco) is targeting extracting 560 000 tonnes of chrome ore and producing 120 000 tonnes of ferrochrome this year.
Last year Zimasco extracted 350 000 tonnes of chrome ore and produced 100 000 tonnes of ferrochrome. Zimasco spokesperson, Ms Clara Sadomba said the giant chrome smelter had set sights at increasing its production this year.
“Zimasco is targeting to produce approximately 120 000 tonnes of ferrochrome in 2018. It is also targeting to produce approximately 360 000 tonnes of chrome ore for export in 2018 and 220 000 tonnes for its ferrochrome production. Zimasco produced approximately 100 000 tonnes of ferrochrome from smelting and metal recovery operations in 2017. It also produced approximately 150 000 tonnes of chrome ore in 2017 for export and 200 000 tonnes of chrome ore for the production of its ferrochrome,” she said.
Ms Sadomba said the company was now operating at 80 percent capacity.
“We have five furnaces which have the capacity to produce 180 000 tonnes of ferrochrome per annum. Currently four furnaces are operational meaning we are utilising 80 percent of our capacity. A South African company Portnex is utilising two of those four furnaces on a leasing arrangement while Zimasco is running the other two furnaces,” she said.
Ms Sadomba said inadequate and obsolete road and rail infrastructure was adversely affecting Zimasco’s operations.
“The shortage of wagons has resulted in Zimasco failing to transport its goods to the port timeously for export and we currently have over 30 000 tonnes of chrome ore still to be transported to port. Inadequate road and rail infrastructure to support our business for the transportation of inputs and for the export of our products,” she said.
Zimasco will this week be weaned off judicial management after close to two years of incubation by Grant Thornton International. Zimasco creditors agreed on a scheme of arrangement last month after the giant ferrochrome producer made a turnover of more than $ 158 million in 16 months. A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors.
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