Chrome export ban to go

Deputy Minister of Mines and Mining Development Mr Gift Chimanikire last week said consultations were underway with relevant stakeholders, but could not give a timeframe as to when the ban would be lifted.

He said Government would also come up with mechanisms to prevent under-declaration of chrome exports, should Cabinet approve the temporary lifting of the ban.Chrome ore exports were banned in April 2011 to promote value addition.

“We are still engaged in negotiations with stakeholders to lift the ban but we can only do it for two years and the timing would have to be conditional to the building of weighbridges at Chikwalakwala and Nyamapanda exit points,” said Mr Chimanikire.

He added that Minerals Marketing Corporation of Zimbabwe had agreed to build the bridges but the process had been delayed.
Deputy Minister Chimanikire also said the levy on chrome exports would increase the amount of chrome being processed in the country.
“When the ban was temporarily removed, we had an agreement with exporters that they would build smelters, but this did not happen. So, this levy will go towards that exercise,” he said.

Smelting plants refine ore and produce semi-finished products such as ferrochrome that have a higher value.Small-scale miners have been lobbying for the lifting of the ban because Zimasco, which has the only operational smelter, was said to be buying very little chrome ore at low prices of about US$50 per tonne, while international markets were offering US$150 for the same quantity.Zimbabwe does not have the capacity to process all the lumpy chrome produced.

As a result, the mineral stock has been rising steadily since 2009, with the average output being 1 000 metric tonnes per month.In 2010, 600 000 tonnes of chrome ore were produced before production was dampened by the export ban.Zimbabwe’s chrome ore grades range between 42 and 48 percent.
Zimbabwe and South Africa hold about 90 percent of the world’s chromite reserves. There are more than 4 000 registered chrome mining claims in the country with most of them located in Shurugwi, Mutorashanga, Lalapanzi and Guinea Fowl.

The chrome reserves are located within the Great Dyke. The resource is categorised as world class, if considerable value addition takes place so that the ore is processed into ferrochrome alloys before export.

Ferrochrome is in demand in most fast expanding economies such as China and Brazil. Chromite has several industrial applications, primarily based on its content.
High chromium ores are used for producing ferro-chromium for metallurgical applications such as making stainless steel.
Ferrochrome producers predominantly consume chrome ore and the balance is consumed for special uses (super alloys, leather tanning, castings and metal finishing).

There are no economic substitutes for chromite ore in the production of ferrochrome, chromium chemicals or chromite refractories at present.
Chromium-free substitutes either compromise product quality or increase costs or both.
Ferrochrome producers for stainless steel largely drive demand for chrome worldwide, particularly in China.