Online Reporter
Martin Kadzere
ZIMBABWE remains determined to maximise revenue from its vast deposits of chrome resources through beneficiation and value addition, a stance that has become a consistent theme in the country’s economic policies.
The Government’s 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.
The 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 previous Government bans on raw chrome exports.
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 of the resource into ferrochrome.
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 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 and 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 has been creating a significant loophole, leading to corruption and smuggling, with some companies exporting far more than their allocated quotas, effectively defeating the purpose of the ban.
“Granting special licences is a bad idea in itself,” said Mr Gibson Romari, a consulting mining engineer. “. . . 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.”
Last year, Zimbabwean processors produced 175 000 tonnes of high-carbon ferrochrome, valued at US$161 million, while chrome concentrate exports amounted to 411 950 tonnes, worth US$82 million, according to figures from the Minerals Marketing Corporation of Zimbabwe (MMCZ).
During the first half of 2025, ferrochrome exports rose to 196 600 tonnes, valued at US$156 million.
Meanwhile, chrome concentrate exports declined to 363 600 tonnes, with a value of US$62,3 million.
Mr Romari said, while the ban was designed to compel companies to invest in local processing, the permits had allowed a business-as-usual approach for some.
“The system has created an environment ripe for abuse,” he said.
“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.”
Analysts have consistently highlighted that widespread corruption involving companies and syndicates has cost Zimbabwe’s 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 be tied to a commitment to build or expand a local smelting plant.
The policy is strongly supported by 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.
Cabinet, in reaffirming the ban on chrome ore exports, emphasised the need to promote the upgrading of the local ferrochrome industry, Information, Publicity and Broadcasting Services Minister Dr Jenfan Muswere told journalists during a post-Cabinet briefing in Harare on June 10.
“The Ministry of Mines will strictly enforce the ‘use it or lose it’ principle, and all holders of idle mining rights (especially for chrome ore) must immediately respond to the Government’s requirements,” he said.
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 oversupplied and demand weak, local beneficiation is seen as the only way for Zimbabwe to insulate itself from fluctuating international chrome prices.
“Despite a positive long-term outlook for the global chrome market, driven by expected stainless steel production growth, the chrome ore and concentrate market remained pressured by weak global stainless steel demand and growing stockpiles in China,” MMCZ general manager Dr Nomsa Moyo said.
“This necessitates a strategic review of chrome ore export policies given the current market oversupply.
“In this regard, MMCZ will be engaging the Ministry of Mines to advocate for a total ban on chrome ore exports.”
The new policy, coupled with the MMCZ’s call for a complete ban, directly links mining rights to investment in local processing, compelling 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 the production of 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.
