adminthe reserves owned by the big miners if the country is to benefit from its resources.
Appearing before the Parliamentary Portfolio Committee on Mines and Energy yesterday, the miners said local smelters did not have the capacity to smelt all the chrome mined in the country.
They said the local smelters did not process specific ores like concentrates and alluvial, thereby constraining their operations.
The miners called on the Government to re-claim some of the chrome ore reserves owned by Zimasco and Zim Alloys, saying they were too vast.
The two companies own about 80 percent of the 10 billion tonnes of chrome reserves.
The committee is chaired by Guruve South legislator, Cde Edward Chindori-Chininga (Zanu-PF).
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Government in April banned the exportation of chrome ore in a move that was meant to boost local refinery production.
Miners Federation chief executive officer, Mr Wellington Takavarasha, said the local smelters were buying chrome at uncompetitive prices.
“Zimasco is buying chrome ore, which has 42 percent grade at US$40 and US$60 for small scale and mechanised miners respectively.
“Local buyers have not assisted small scale miners in any way because smelters have said they are not ready to buy lumpy chrome,” he said.
Mr Takavarasha said the miners needed an initial lifting of the ban by about 36 months to produce and construct smelters.
Notraught Mining representative, Mr Takura Dhliwayo, said the ban had impacted negatively on the operations of miners as they had already signed contracts with foreign companies.
“As we speak our company owes banks over US$1 million we borrowed for manufacturing equipment.
“With the advent of the ban many people struggled because smelters can’t cope with 40 percent chrome ore. A lot of ore is of low grade of between 36-40 percent, which they don’t want yet they have a market out of the country.
“The current smelters also buy at a price, which is below market besides paying 35-40 days later, while foreign buyers can pay in advance,” he said.
Mr Dhliwayo said there were distortions on the actual value of chrome considering that the Chinese have been buying chrome ore at US$120 per tonne and pay transport and duty which would amount to about US$200 per tonne.
NCD Chrome Miners representative, Mr Wonder Hama, said if the ban was lifted, small scale miners would be able to export and build smelting plants.
“If the ban is lifted it will assist us to construct smelting plants because when we came into the industry, we signed contracts with two companies which wanted 10 000 tonnes of ore each per month.
“As we speak, we have ore that we cannot sell to Zimasco and Zim Alloys because they pay us after 45 days. Banks are not willing to give us funding even for protective clothing yet for beneficiation one would require about US$15 million for a smelter, which takes about 10 000 tonnes,” he said.
Mr Hama said allowing small scale miners to export was the best mechanism of indigenisation and empowerment that Government could implement.
Mr Thomas Gono of Golden Riff Mining, said Government should repossess some of the chrome ore reserves because Zimasco and Zim Alloys did not have the capacity to extract the resources in the short-term.
“The Great Dyke has the world’s largest untapped chrome reserves. These reserves have been owned by Zimasco and Zim Alloys for over 50 years and they will only be able to finish them in 500 years.
“The two companies own too much and through mutual agreement between the Government and the companies, they should open up.
“If this is allowed to continue, then there will be no poverty alleviation because there is a dire need for the families that were employed by the chrome miners,” he said.
Mr Gono said Government was the owner of resources thus should reclaim about 30 percent of the reserves owned by Zimasco and Zim Alloys.
Chrome Tributors official Mr Tawanda Mawema said: “Government should make the two companies (Zimasco and Zim Alloys) to release the ground with the high grade, which is the Great Dyke because they will not exploit all of it in the near future.
“They can only be able to exploit it in over 300 years, which won’t be of benefit because the longer we sit on them then we won’t benefit.”
Mr Mawema said Government should also come up with a producer price, which makes locals companies to pay at the international rate.
Zimbabwe has about US$10 billion worth of chrome reserves.
Bongani Ndlovu
Online Reporter