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Operations at the plant were suspended in October last year after continuous breakdowns of production equipment including the main gearbox that propels the kiln where iron ore and coal are fed to produce sponge iron.
In a telephone interview from Redcliff yesterday, Steelmakers general manager Mr Alexander Johnson confirmed the resumption of operations at the sponge iron plant.
“We have resumed production at the plant today and we don’t intend to stop production because we have secured markets for the product to South Africa, Malawi, Pakistan and locally,” he said.
Operations were expected to have resumed in April after the installation of a new gearbox but were delayed because the company was yet to secure markets for sponge iron.
“Securing the markets was the issue that was holding us back from resuming operations following the installation of a new gearbox.”
Mr Johnson said the sponge iron plant resumed operations with 110 employees with a bulk of them being contract workers.
As production picks up, it is hoped that more workers will be recruited.
Prior to suspension of operations, 230 people were employed at the plant while 65 worked at the company’s iron ore mine in Masvingo.
Sponge iron is mainly used as a raw material for speciality steel as well as a substitute for scrap metal during the production of steel.
The rise in scrap metal prices and other factors have forced most steel producing plants in the world to use sponge iron for making high quality steel.
During years of economic meltdown in Zimbabwe, the market for steel industry was erratic as demand was subdued.
Following the economic recovery process the country is going through, experts envisage a steady rise in local demand for sponge iron.
Online Reporter