adminHe said the plant, which resumed operations last month, was operating at full capacity producing 100 tonnes of sponge iron per day.
“We are operating at full capacity and the operations at the sponge iron plant in Masvingo are going very well with a production capacity of 100 tonnes per day. We have started exporting to South Africa and we will be exporting 300 tonnes of sponge iron per month to South Africa,” he said.
He said although his organisation secured markets in Zambia and Pakistan, they were yet to start exporting to the two countries because of price distortions.
“Our markets in Pakistan and Zambia have not placed orders due to price distortions in the respective countries.
“The price distortions are a result of instability of their local currencies against the United States dollar,” said Mr Johnson.
Some of the sponge iron is consumed locally at the firm’s steel manufacturing plant in Redcliff. One hundred and ten people are employed at the plant.
Operations at the plant were suspended in October last year after continuous breakdowns of production equipment including the main gearbox that drives the kiln where iron ore and coal are fed to produce sponge iron.
Sponge iron is mainly used as a raw material for speciality steel as well as a substitute for scrap metal during the manufacturing of steel.
Online Reporter