Magnetite production set to rake in US$15m annually

Source: Magnetite production set to rake in US$15m annually -Newsday Zimbabwe

for Presidential Affairs in charge of Implementation and Monitoring Joram Gumbo

GOVERNMENT has revealed that the US$3 million magnetite production expansion at Dorowa Minerals is expected to generate US$15 million in foreign currency earnings per annum.

Magnetite is a magnetic rock mineral and one of the main iron ores which have several domestic and industrial uses including separating coal from waste, while for domestic purposes it can be transformed and used as a magnetic decor for refrigerator doors.

In a priority project matrix for the first 100-day cycle report, Minister of State for Presidential Affairs in charge of Implementation and Monitoring Joram Gumbo said through that project they were anticipating increased capacity and exports.

“Planned target for the project is the expansion of the magnetite plant to produce 6 000 tonnes per month, while expected benefits will be increased market share, revenue and profitability and production economies of scale from shared costs with phosphate production.

“This will also lead to increased capacity for magnetite production, employment creation and exports. Expected forex earnings is US$15 million per annum from the current US$4 million,” he said.

Gumbo said some of the benefits of the expansion project are contribution to forex earnings for the country and a reduction in reliance on fiscus for forex to procure raw materials and direct employment of 15 people and indirectly in the bagging transport companies.