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DOROWA Minerals Limited says it requires US$16 million to increase production to reach its optimum capacity of 150 000 tonnes of phosphate concentrates per annum.
The company is Zimbabwe’s main producer of phosphate concentrates, which is a critical ingredient in basal fertiliser manufacturing. It also produces magnetite, an industrial mineral.
Currently, the mine is producing 48 000 tonnes of phosphate concentrates annually, which translates to a 30 percent capacity utilisation.
The company’s current output level is enough to support the manufacturing of about 300 000 tonnes of basal fertilisers, which is about 75 percent of national basal fertiliser demand.
This leaves the country with a deficit covered by imports.
In terms of magnetite, the company is producing about 1 500 tonnes per month; with 90 percent of the commodity being exported into regional markets, especially Mozambique.
Dorowa Minerals is earning circa US$2,5 million to US$2,6 million per annum in foreign currency from magnetite, which can be tripled if the company upgrades equipment.
The company has been operating with antiquated equipment since it last did a major refurbishment in 1973.
This situation results in frequent breakdowns, which makes it difficult for the company to produce at full capacity.
Until the recent completion of Hwange Power Station units 7 and 8, the company’s operations were also weighed down by power supply challenges.
The company also faced challenges getting adequate water required for its operations, but management is looking to tap from the recently completed Marovanyati Dam located about 35 kilometres from the mine site.
The mine uses about 100 000 cubic litres of water per day.
Dorowa Mine has a 60-year lifespan and the huge resource base has been marginally exploited since it started operating in 1965.
“Dorowa Mine is the bedrock and anchor of our agriculture in Zimbabwe, there is not much agriculture to talk about if Dorowa does not run well, we need it for the supply of fertiliser for our horticulture, cotton, tobacco, and production of our key staples and grains.
“This is the genesis of our agriculture without which Zimbabwe will be at the mercy of global turbulence in fertiliser production, supply bottlenecks we have seen spiralling and getting out of control during the Covid-19 period and now also due to the war in Eastern Europe where most of these fertilisers and agrochemicals come from.
“We have to make sure that Dorowa works otherwise we run the risk of derailing our agrarian reform, that is how far it can go,” said Mr Edward Tome Industrial Development Corporation of Zimbabwe (IDCZ) acting board chairman during the recent Dorowa Mine tour.
He said local production of fertilisers can reduce agriculture input costs by between 55 to 65 percent. Dorowa Minerals Limited general manager Mr Charles Mangadze said the antiquated equipment was causing frequent breakdowns, affecting optimal performance.
“…we are appealing to our shareholders to fund the refurbishment exercise so that we will be able to meet 75 percent of our national demand for basal fertilisers.
“We would also like to embark on a magnetite plant upgrade where we want to construct a bigger magnetite plant so that we treble that production to 4500 tonnes per month, with that we will be able to earn up to US$15 million per annum in foreign currency from magnetite,” said Mr Mangadze.
If financially supported, Dorowa Minerals has a long-term vision of investing in an integrated production system for the production of basal fertiliser in Dorowa.
This would also entail onsite production of key raw materials including sulphuric acid, and phosphoric acid.
According to the company, this is in tandem with the devolution agenda, driven by President Mnangagwa administration, as these plants will be domiciled in Buhera.
Locals from the Buhera community stand to benefit through more employment from a revitalised Dorowa Minerals mine and the envisioned all-in-one plant.
The new and all-in-one plant is scoped to meet national demand and grow exports into the region.
About 75 percent of the Dorowa Minerals employees are from local villages and stand to benefit more from the refurbishment and expansion drive.
Online Reporter