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Oliver Kazunga Senior Business Reporter
THE Zimbabwe Miners’ Federation (ZMF) has welcomed the lifting of the ban on chrome ore exports saying this will allow them to dispose of a 50,000 tonne stockpile of the mineral and increase their earnings.
Following the ban on raw chrome exports by the government in April 2011, small-scale chrome producers accumulated 50,000 tonnes of the mineral over the years.
Vice President Emmerson Mnangagwa announced the lifting of the ban in Bulawayo at the weekend.
He said the move was prompted by a desire to rejuvenate operations in the sector while promoting economic growth and development.
ZMF first vice president, Morgan Moyo said they welcomed the lifting of the embargo on raw chrome exports.
“We welcome the lifting of the raw chrome ore export ban because what has been happening in the past is that some people were taking advantage (of the ban) to buy the chrome at unreasonably low prices.
“Now that the ban has been lifted there’s going to be competition on the market. As a result this will go a long way in assisting small-scale chrome producers to dispose of the 50,000T stockpiles of raw chrome, which they had accumulated following the ban,” said Moyo.
He hoped the move would curb exploitation of small scale chrome producers as some of the companies were taking advantage of the limited buyers on the market.
“Delays in payments will now be a thing of the past. Small-scale producers will now deal with buyers that pay within the shortest possible time,” Moyo added.
VP Mnangagwa said the government was working on mobilising up to $100 million for a special purpose vehicle that would buy raw chrome from small-scale producers at international rates.
He said this was meant to economically empower the indigenous miners.
Moyo said the lifting of the ban on raw chrome exports would improve liquidity in the country as the mineral would be exported thus immediately generating the much needed revenue in the country.
Chrome is a significant resource used in industrial processes such as electroplating to give the metal properties such as abrasion and wear resistance and corrosion protection. Zimbabwe has one billion tonnes of chrome ore and is the world’s second largest chrome ore reservoir after South Africa.
The government placed a ban on raw chrome exports in 2011 to encourage beneficiation of the mineral by local companies who were buying chrome.
Online Reporter