Online Reporter
Martin Kadzere, Zimpapers Business Hub
ZIMBABWE remains determined to maximise revenue from its vast chrome resources through beneficiation and value addition, a stance that has become a consistent theme in its economic policies.
The recent policy, linking large new chrome mining rights to smelting capacity is a masterstroke that will ensure these valuable resources are granted only to serious investors, some analysts say.
This new, stricter policy aligns with the “use it or lose it” principle and is designed to prevent companies from speculatively hoarding mining claims without investing in industrial development.
The approach could be a long-term solution to the ineffectiveness of past Government bans on raw chrome exports, which have failed to yield the desired results of increased beneficiation.
Zimbabwe holds the world’s second-largest chrome reserves after South Africa, with the majority located along the mineral-rich Great Dyke.
Over the years, the Government has repeatedly imposed bans on the export of raw chrome to encourage local processing into ferrochrome. However, these bans have had mixed results.
The first ban was imposed in 2007 but was reversed in 2009 after it failed to boost local processing.
Instead, it harmed small-scale miners and forex inflows. Another ban in 2011 was also lifted in 2015 for the same reasons.
The Ministry of Mines and Mining Development at the time noted that these failures were due to a lack of modern technology, high electricity tariffs as well as low global ferrochrome prices.
Notwithstanding the past setbacks, the Government has kept a close eye on the chrome sector.
In 2020, a fresh ban was put in place, but some industry players and officials believe it is being undermined by special permits that allow some companies to continue exporting raw chrome.
This was creating a significant loophole, leading to corruption and smuggling, with some companies exporting far more than their allocated quotas and effectively defeating the purpose of the ban.
“Granting special licences is a bad idea in itself,” Mr Gibson Romari, a consulting mining engineer, said.
“It allows for a more productive transition towards the industrialisation of the chrome sector.
“However, people seem to have taken advantage of the reprieve and we have seen an increase in the export of raw chrome. This, I believe, has derailed the focus on investment in value addition.”
Ferrochrome sales volume increased by 13 percent to 280 096 tonnes, exceeding projections by three percent, according to the latest figures from the Minerals Marketing Corporation of Zimbabwe (MMCZ), the country’s marketing agency for all minerals except for gold and silver.
However, despite strong volume, the value of sales declined by one percent to US$228,7 million, missing the budget by seven percent.
The market, bolstered by firm stainless-steel demand and higher production costs, saw Zimbabwean ferrochrome remain attractive to regional buyers despite local power and logistics challenges.
On the other hand, chrome concentrate exports saw a sharp decline in the first eight months of 2025, with both volume and value slumping significantly.
A total of 553,544 tonnes of concentrates were exported, a 13 percent drop from the previous year.
The value of these exports plummeted by 21 percent to US$94,4 million, largely due to a market-wide glut that suppressed demand and prices in the first quarter.
Despite the overall downturn, demand for Zimbabwean concentrates remains robust, particularly from Chinese smelters, with the material fetching a premium over South African grades.
While figures for raw chrome and ferrochrome export volumes show strong growth, Zimbabwe stands to benefit more by exporting processed products rather than raw materials.
Mr Romari said while the ban was designed to force companies to invest in local processing, the permits have allowed a business-as-usual approach for some. “The system has created an environment ripe for abuse.
“Beneficiaries of these special licences often exported far more than their allocated quotas, with some reports even indicating that forged documents from legitimate, but inactive, permits are used,” he said.
Analysts have consistently highlighted that widespread corruption, involving companies and syndicates, has cost the Zimbabwean economy millions in potential revenue and foreign currency.
In a move analysts say will directly address the issue, the Cabinet on June 10, 2025, announced a new policy requiring that all new chrome mining rights exceeding 100 hectares must be tied to a commitment to build or expand a local smelting plant.
The policy is strongly supported by the MMCZ, which is now advocating for a total ban on raw chrome exports.
According to analysts, this comprehensive approach will help eliminate the loopholes and stop the abuse of special licences that have long plagued the sector.
In a strong move to promote value addition in the chrome industry, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere, said all new chrome ore mining rights for concessions larger than 100 hectares must now be linked to specific plans for expanding or building new smelting capacity.
He said the Government was reaffirming its ban on chrome ore exports as a key measure to support the local ferrochrome industry.
The goal is to force companies to invest in local infrastructure and protect the industry from global market pressures.
With the global chrome ore market currently oversupplied and demand weak, local beneficiation is seen as the only way for
Zimbabwe to insulate itself from fluctuating international chrome prices.
The MMCZ is advocating for a complete ban on chrome ore exports.
This is a direct response to the global chrome market’s oversupply, which could lead to depressed prices.
The MMCZ believes that while the long-term outlook for chrome is positive, the current weak demand and large stockpiles in China necessitate a strategic policy shift to protect the local industry.
“To safeguard supply and sustain growth, priority will be placed on meeting local smelter demand before permitting exports of raw ores and concentrates.
“Support for small-scale producers and improved compliance with regulated export processes will also be critical in boosting production and exports,” MMCZ corporate communications, Mrs Pretty Musonza said.
The new policy, coupled with the MMCZ’s call for a complete ban, directly links mining rights to investment in local processing, forcing companies to contribute to the country’s economic development.
This is expected to increase local value addition as more chrome will be processed into ferrochrome, a key component in stainless steel, generating more revenue for the country. Companies seeking new claims will be required to invest in smelting plants, bringing new capital and technology.
To become a more significant player in the global stainless-steel value chain, Zimbabwe must support its ferrochrome beneficiation efforts with reliable and affordable electricity and an efficient rail transportation system.
Without these key interventions, local producers will struggle to be competitive on the international market.
Zimbabwe has an annual chrome processing capacity of about 270 000 tonnes from its 10 existing producers, with individual capacities ranging from 3 000 tonnes to 84 000 tonnes.
