via Zim Alloys on the mend |The Herald August 4, 2015
FERROCHROME producer Zimbabwe Alloys has switched on one of its major furnaces and hopes to bring back on stream its largest oven by 2016 if its capital raising exercise for $2,5 million is successful.
Judicial Manager Mr Reggie Saruchera said the resuscitation of the furnace is a welcome development and brings hope to the Gweru community and the economy as a whole, but more work still needs to be done.
Mr Saruchera said Zim Alloys requires $2,5 million to to bring back two other furnaces which would enable the company to increase its production capacity.
“We want the A3 furnace to be constructed by next year. Dimaf (Distressed Marginalised Areas Fund) could give us $2,5 million and we begin to control our own destiny.
“The export of chrome ore and the construction of A3 that two combination could give us the funds we need. So if we could get that $2,5 million Dimaf facility for us to be able to sort our A3 then we are getting there,” said Mr Saruchera.
“We are targeting A3 which is the biggest and then subsequently we can then deal with the others,” he said.
Industry and Commerce Minister Mike Bimha said Government was committed to assisting companies to produce. We need to get those companies (Zim Alloys, Zimglass, Bata) back.
“I’m happy because Mr Saruchera is working with Zim Alloys. We have worked with Mr Saruchera as judicial manager in a number of companies that are now back on stream, Blue Ribbon and Cairns being some of them. This is why we want to say this can be done,” said Minister Bimha.
“I am seeing something very promising and you are assured of our support,” he said.
Mr Saruchera said the ferrochrome producer was open to working with other producers to sweat the assets under its ownership.
The company is sitting on chrome deposits dotted around the country and is accepting joint venture arrangements for the exploitation of the deposits.