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Oliver Kazunga Acting Business Editor
THE ban on Chrome exports will remain in place as Government forges ahead to implement policies that support value addition and beneficiation of mineral resources. The ban on exports of raw chrome was effected in 2010 and due to limited absorptive capacity of local companies, the producers accumulated more than 25 000 tonnes stockpiles.
As a result of the huge stockpiles, the ban was relaxed before it was reintroduced.
In the 2014 national budget, the Ministry of Finance and Economic Development Patrick Chinamasa highlighted that the availability of huge stocks of chrome ore also presents opportunities for other players to set up new smelting plants.
This was evidenced by the recent opening of Afrochine smelting plant in Selous.
“Government will uphold the ban on raw chrome exportation policy and further support those companies whose processing operations go beyond ferrochrome production, in order to mitigate against price volatility on the international market,” reads part of the budget statement.
The Government has a responsibility to ensure the country benefits from its minerals since they do not replenish once exploited.
“The challenges with smelting companies were, however, related to the slump in ferrochrome prices on the international markets, which are however, temporal in nature.”
Meanwhile, the Government has reaffirmed its commitment on ensuring the country fully benefits from its mineral resources throughout the entire value chain stating that it is imperative to optimise the exploitation of diamonds.
Of late, it has been noted that the existence of numerous players in the exploitation and marketing of diamonds poses leakage challenges.
This was exacerbated by the absence of a legal framework and standard operational guidelines which regulate operations of diamond mining companies.
In this light, Government will be implementing appropriate strategies that unlock maximum value from the industry in order to ensure its maximum contribution and integration to the national economy.
The measures include engaging a number of private players to set up diamonds cutting and polishing companies, as well as the respective training; and reviewing distortions that favour international rough diamond buyers, dealers, as well as cutting and polishing centres at the expense of local dealers.
In line with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (ZimAsset) the Government also focuses on enhancing transparency to ensure that revenue flows from the country’s resources contribute meaningfully to the economic reform and development agenda.
Online Reporter