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Business Reporter
STAKEHOLDERS in the chrome mining sector will convene a two-day consultative meeting in Gweru starting today to deliberate on the challenges affecting the small-scale mining industry as well coming up with solutions.
The all-stakeholder consultative meeting, which is being facilitated by the Minerals Marketing Corporation of Zimbabwe, will be attended by officials from the Ministry of Mines and Mining Development, several Government departments, the National Railways of Zimbabwe as well as the Zimbabwe Miners’ Federation (ZMF), a body that represents the interests of small-scale miners.
ZMF spokesperson Mr Dosman Mangisi told Business Chronicle yesterday that due to the challenges facing the small-scale chrome miners, productivity and sustainability was hamstrung.
“Tomorrow we will be convening an all-stakeholder two-day consultative meeting in Gweru. The meeting is being facilitated by the Minerals Marketing Corporation of Zimbabwe (MMCZ). The agenda of the meeting is to discuss production, pricing and logistical challenges and to map the way forward.
“So far from the producers’ side, the small-scale miners are constrained by a myriad of challenges such as lack of accessibility to mining areas, lack of mining equipment, few chrome buyers, and high transport costs,” he said.
Mines and Mining Development Minister Walter Chidhakwa has said the Government is restructuring the chrome mining sector to enable small-scale miners to drive the exploitation of the mineral. After gold, chrome miners are the second largest employers in the small scale mining sector.
Minister Chidhakwa said the Government would forge ahead with the restructuring of the chrome sector after big corporates, Zim-Alloys and Zimasco, agreed to cede 50 percent of their claims to the State.
“The small-scale miners have the potential to surpass that target should the challenges they are facing presently are addressed. As it is right now some of the small-scale producers have huge stockpiles of chrome, which they cannot dispose of due to lack of buyers.
“For example, there is one miner in Mberengwa who has indicated to me that she has 5 000 stockpiles of chrome and because of lack of buyers her workers are deserting her,” said Mr Mangisi.
He would not be drawn into giving details of the amount of stockpiles the miners presently have as he did not have the figures off hand.
The recent boom in chrome prices on the international market has seen a rush for chrome ore claims across the globe.
Latest reports indicate that ferrochrome prices for the first half of 2017 are providing ongoing momentum for the ferrochrome business, which is poised to benefit from the growing production of stainless steel.
The Government has also indicated that the empowerment of small scale chrome producers was good for the economy.
In June 2015, the Government lifted the ban on chrome ore exports to improve liquidity in the sub-sector with the objective of promoting and facilitating sustainable long-term smelting capacity in Zimbabwe.
The country is anticipating to double chrome ore production this year to 550 000 tonnes from 284 943 tonnes in 2016.
Ferrochrome (refined chrome ore) production is also expected to rise to 300 000 tonnes, from 149 000 tonnes.
Last year, Zimbabwe realised $115 million from the export of 149 000 tonnes of ferrochrome while $31 million was earned from the export of 284 943 tonnes of raw chrome. Most of the chrome mining is along the Great Dyke.
Online Reporter