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GOVERNMENT has created a special purpose vehicle to facilitate buying and selling of chrome ore from small-scale miners following the lifting of export ban on the mineral.
The SPV, which will comprise the Ministry of Mines and Mining Development, the Reserve Bank of Zimbabwe, Minerals Marketing Corporation Zimbabwe and Zimbabwe Revenue Authority, is meant to create efficiencies in buying and selling of chrome ore.
The Government lifted the ban on chrome ore exports in June to boost viability of miners.
The Government had imposed ban on chrome ore exports in 2011 to encourage companies to beneficiate the mineral. However, the ban had a negative impact on producers, particularly small-scale miners, some who were forced to shut down. While miners have welcomed the lifting of the ban, low prices of around $30 per tonne are a concern.
In a letter to chrome miners, Zimbabwe Miners Federation (ZMF) chief executive Mr Wellington Takavarasha said the SPV was already operational.
“Notice is hereby given that the Special Purpose Vehicle . . . is now ready to transact,” Mr Takavarasha said.
Mr Takavarasha said the miners will be organised into three groups — the South Dyke, the North Dyke and the Middle Dyke for easy access and transportation of the product.
Miners tributed to Zimasco or ZimAlloys can also sell to the SPV if the prices are favourable.
In an interview, ZMF spokesperson Mr Dosman Mangisi said a chrome department has been created at the MMCZ to ensure smooth flow of the new system.
Zimbabwe, alongside South Africa holds about 90 percent of the world’s chrome reserves, according to the US Geological survey.
The major producers are ZimAlloys, currently under reconstruction and Zimasco, owned by China’s Sinosteel Corp. The 2011 ban was not the first as Government in 2007 suspended raw chrome exports before lifting the ban two years later.
Mines and Mining Development Minister Walter Chidhakwa said after lifting the ban on exports in 2009, the chrome sub-sector continued to experience challenges. These included lack of effective accounting framework for chrome ore volumes and values that were being exported through Maputo port, lack of a well-coordinated administration and monitoring framework for production, marketing and export of chrome ore and environmental degradation that resulted from uncontrolled mining of chrome ore.
He said the optimum production, smelting and export of chrome ore would result in major producers such as Zimasco being able to generate income for expanding their smelting capacity.
During the first half, chrome output is expected at 96 049 tonnes, against a revised annual projection of 500 000 tonnes. The downward revision of output is premised on the prevailing low global market prices for ferro-chrome, Finance and Economic Development Minister Patrick Chinamasa said.
He said the lifting of the ban on the export of raw chrome would see about 150 000 tonnes being exported.
Online Reporter