Committee to correct chrome pricing issues

Source: Committee to correct chrome pricing issues | The Herald August 6, 2018

Committee to correct chrome pricing issues

Ishemunyoro Chingwere Business Reporter
THE Minerals Marketing Corporation of Zimbabwe (MMCZ) has formed a chrome ore pricing committee that will be tasked with setting up minimum floor prices for all chrome exports. The move is in line with Government’s call to maximise returns on the country’s rich mineral deposits some of which have been shipped out of the country with very little benefit for locals.

The committee, said MMCZ, will set monthly chrome prices below which the Government minerals marketing arm will not permit chrome exports.

“On 16 July 2018, Minerals Marketing Corporation of Zimbabwe (MMCZ) in conjunction with Applebridge Investments held a small scale chrome miners consultative meeting. . . The meeting discussed inter alia; chrome production constraints, pricing and logistical challenges” said MMCZ acting general manager Mr Masimba Chandavengerwa in a statement.

“One of the recommendations mooted during this meeting was the formation of a chrome ore pricing Committee, which comprise representatives from lumpy chrome producers, chrome concentrate producers, Zimbabwe Miners Federation (ZMF) and MMCZ.

“It was agreed that the purpose of the Committee would be to set minimum floor prices below which export sales could not take place.

“The Committee has since been formed and it held its first meeting on the 1st of August 2018. During its first meeting, the committee agreed on benchmark prices for lumpy chrome and chrome concentrates,” he said.

He said chrome ore producers must therefore start working in consultation with their representatives from ZMF or directly with MMCZ offices for guidance on floor prices for the current month.

The committee is likely to be a major relief for miners mining in remote parts of the country particularly the Northern Dyke who have been falling foul to unscrupulous buyers who were taking advantage of the miners’ logistical challenges to offer unviable prices.

Zimbabwe as at July, was exporting its chrome, largely to China for $240 to $250 per tonne with the figure getting to $120 for the miner after factoring in logistics among them Ocean freight, insurance, port handling and railage.