malvernmugadzikwa
Business Writer
Zimasco, a unit of Sinosteel Corporation, has closed down its smelter in Kwekwe after Zesa cut power supplies because of a tariff dispute.
With effect from October 1, 2022 exporters, including miners are paying US10,12c per kWh.
Zimasco spokesperson, Clara Sadomba, said negotiations with Zesa over the tariff were ongoing.
“We are confident the situation will be resolved soon and power will be restored to the smelter,” she said. “In the meantime, we have taken the opportunity to carry out essential maintenance work on our furnaces.”
Zimasco has the capacity to produce about 180,000 tonnes of ferrochrome a year, and plans to more than double that amount by 2024.
Zimasco has already started building two new furnaces at the Kwekwe complex as it targets to raise capacity by 40 percent.
The investment will also involve the refurbishment of two furnaces and a sinter plant.
Ferrochrome, alongside platinum, diamonds and is among the mineral commodities expected to grow the industry to a US$12 billion economy by next year.
To encourage investments in beneficiation facilities, the Government has since banned raw chrome exports, a development, which analysts say will see more capital flowing into the sector. The Government also granted huge tracts of land to companies intending to establish integrated chrome mining and smelting.
Online Reporter