adminLeonard Ncube Victoria Falls Reporter
A LOCAL coke producer has urged the government to licence more smelting firms to widen the market for their products in the wake of declining global demand for the product.Officials from Hwange based coke firm, South Mining, said the fluctuating global market demand was crippling their operations.
The company relies on exports to countries such as DRC, South Africa and Zambia.
Charles Muchabaiwa, the company’s spokesperson, told Business Chronicle that demand changes have forced them to scale down on production.
“We’re coking coal but the problem is that the market is now down. We’re supposed to produce 12,000 tonnes per month but we’ve scaled down to 6,000 because there are no customers at the moment,” he said.
South Mining is a joint venture enterprise between Zimbabwean and Chinese investors and is located in the Madumabisa resettlement area, west of Hwange Colliery Company.
The mine employs in excess of 300 workers, Muchabaiwa said.
Locally, the company supplies coal to HCCL whose coke battery is down.
“We export into the region, mainly to DRC, South Africa and partly Zambia while also doing work for Hwange Colliery since their battery is down.
“Our hope is for government to allow more smelters to open in Zimbabwe so that we can have the market to sell coke locally. If we have ferrochrome companies in Gweru, Kwekwe and other small smelting firms around the country that would sustain us,” said Muchabaiwa.
He said support for coke companies would require the government to craft laws that allow investors to partner locals in smelting businesses.
Muchabaiwa said Zimasco in Kwekwe was the only company buying coke for its smelter plant for raw coal and chrome.
He, however, said that the market was not big enough given limited capacity by the Midlands based smelting company.
Coke is a carbonised coal, a product produced by baking coal in a heated oven and is used in the smelting of iron and steel.
Online Reporter