$500k injected to buy chrome ore

Dosman Mangisi, Business Correspondent
A SOUTH African company, Industrial Commodities Holdings has deposited $500 000 into Apple Bridge Investments, a Government Special Purpose Vehicle which was formed to buy chrome from small-scale miners across the country.

Apple Bridge chairman Mr Masimba Chandavengerwa confirmed the development adding that they will start buying the chrome in some districts of Midlands province.

He, however, said they were facing a pricing challenge following the continued decline of the prices of minerals on the international market.

“We have so far received half a million dollars in the country and it has been deposited to start buying chrome ore. The fund has been deposited by a South African investor, but the challenge now is that the commodity is declining on the international market with chrome concentrate affected much than lumpy. We are looking forward to review downwards maybe by $5 from the initial $80 proposed and also prices will be pegged according to the grades of the chrome ore,” he said.

Mr Chandavengerwa said teams have been dispatched to Lalapanzi area covering Shurugwi to start sampling and put in strategies to start buying the mineral.

“Lalapanzi and areas around and up to Valley in Shurugwi in the Midlands province will be our first focal point because all necessary logistics and mineral sampling has been done and the buyers are satisfied. Also on the north dyke the same exercise is taking place including the middle dyke”, he said.

Last month the SPV announced a provisional price of raw chrome of $80 per tonne on delivery and $65 on ex-works but indicated that prices might be reviewed downwards and an increase was expected in February when prices of metal commodities usually rise on the global market.

The Government lifted the ban on the export of chrome five months ago after it was banned in 2011. The lifting of the ban came after Government has cited the plight of small-scale miners of chrome in the country. The Government is targeting to export about 30 million tonnes of the metal.

The Government has listed four international buyers of the base metal commodity. The international buyers are from Europe, Mauritius and two from neighbouring South Africa. They were considered after they demonstrated their capacity to buy the commodity.