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In Europe, ferrochrome is selling at around $1,35 per pound while in the first quarter it was hovering around $1,15 per pound.
Zimasco mining executive Reason Mandimika told the Parliamentary Portfolio Committee on Mines and Energy that had gone on a study visit of the company’s North and Middle Dyke division in Mutorashanga on Friday that the company’s operations were being affected by falling prices.
“The prices are still at levels whereit is difficult for producers in Zimbabwe.
“We are still not very viable,” he said.
“Because the chrome prices are low we are only mining down to 18 metres.”
Mandimika said some of their mines had been placed under care and maintenance until international prices picked up.
He said the country’s producers were also facing stiff competition from other producers, including South Africa and India who were operating much more viably.
He said Europe, China and the United States were the company’s major export markets.
“We get the highest prices in the US of about a $1 followed by Europe where our biggest markets are Italy followed by Spain but the eurozone economic crisis is weighing down the prices.
“In China, we get 96 cents and at best we get 98 cents,” said Mandimika.
Responding to Uzumba legislator Simbaneuta Mudarikwa’s question on their smelting capacity, the company’s services director Josphat Zvaipa said Zimasco had five smelting furnaces running while one was off line.
He said in total, the company had 1 700 chrome claims across the Great Dyke.
Glen View north MP Fani Munengami queried why the company was in possession of so many claims.
ZIMASCO produces high carbon ferrochrome from mines and smelters in Shurugwi, Mutorashanga and Kwekwe.
According to Zimbabwe Miners’ Federation, Zimbabwe has nine chrome smelters capable of processing up to 1,5 million tonnes of ore per year.
Zimbabwe produced at least 600 000 tonnes of chrome ore in 2010,according to the Minerals Marketing Corporation of Zimbabwe, implying that the country has sufficient capacity to process chrome ore.
Global ferrochrome demand, a metal used in the manufacture of stainless steel, increased two percent in the 2011 calendar year compared to 2010 at some 9,3 million tonnes. — New Ziana.
Online Reporter