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Midlands Bureau
ZIMALLOYS, a ferrochrome producer based in Gweru, has restarted its chrome smelting operations after an 11-year hiatus following a US$7 million investment from Kuvimba Mining House.
The development is a clear act of defiance against the illegal economic sanctions imposed on Zimbabwe as the country forges ahead to revamp its productive sector using internal funding models.
Minister of State for Midlands Provincial Affairs and Devolution, Owen Ncube, announced the breakthrough after touring the plant in Gweru on Tuesday.
ZimAlloys’ resumption of production is a major boost to Zimbabwe’s economy, as ferrochrome is a crucial ingredient in stainless steel production.
The company’s revival is expected to contribute significantly to the country’s export revenues, with ferrochrome being a key export commodity.
Zimbabwe boasts the world’s second-largest reserves of chrome ore, and ZimAlloys’ reopening is poised to strengthen the country’s position in the global chrome market.
Minister Ncube said ZimAlloys is one of the flagship companies in the Midlands Province, with a well-known history of being among the biggest employers and producers of ferrochrome, not only in the Midlands but in the country as a whole.
“Despite the negative effects of illegal economic sanctions imposed on our country by the West and depressed ferrochrome prices on the international market, the company has recently resumed chrome smelting operations, following the strategic decision by the Second Republic, under the visionary leadership of President Mnangagwa, to modernise and industrialise the economy in pursuit of an upper-middle-income society earlier than 2030,” said Minister Ncube.
He commended the hard work and resilience of ZimAlloys management for steering the company through difficult times, managing to retain a workforce of around 300 employees while concurrently building reserves for the resuscitation of smelting operations.
“We applaud the New Dispensation for creating a conducive investment climate that has enabled ZimAlloys to restart operations after almost 11 years under care and maintenance,” Ncube said.
“In this regard, US$7 million has been invested to date in smelting operations, mining, four chrome washing plants in Mutorashanga and Lalapanzi, as well as in the yellow fleet of equipment, with a view to boosting company operations.”
Minister Ncube said the production capacity for both furnace and the metal recovery plant hovers around 4 000 tonnes per annum.
Furthermore, he said, ZimAlloys has plans to invest in a 13.5MVA semi-closed furnace with a production capacity of 24 000 tonnes per annum by 2025, and an additional 31 MVA furnace by 2026, thereby increasing production capacity to 48 000 tonnes.
“These sterling efforts underscore the Second Republic’s development trajectory that seeks to create employment and improve the livelihoods of communities by harnessing our heritage-based natural resources,” he said.
Minister Ncube said it was important to note that the positive developments are coming at a time when the Second Republic has put in place transformative policies to improve the ease of doing business as the economy gravitate towards attainment of a prosperous and empowered upper-middle-income society earlier than 2030.
“The Midlands Province is a beneficiary of these progressive policies, exhibited through realising the highest GDP growth of 10.9 percent in 2022, anchored by mining, agriculture, construction, manufacturing, and tourism,” he said.
“The mining sector had the highest contribution of 27,3 percent, underpinned by more than 12 different high-value minerals embedded along the Great Dyke.
“These include gold, platinum, chrome, diamonds, iron, and coal. Recently, there was a discovery of lithium in Mberengwa and huge deposits of coal bed methane.”
Minister Ncube said to unlock the mining potential, the province seeks increased investment in exploration, mining, and importantly, value addition and beneficiation of its vast mineral resources to create wealth and employment for inclusive growth, in line with the mantra of leaving no one and no place behind.
“I commend ZimAlloys for its corporate social responsibility, which includes on-the-job training of 20 students at any given time in all disciplines.
“In addition, the company is also actively involved in community empowerment for women and youth groups in Lalapanzi through Tribute Mining,” he said.
Minister Ncube urged all mining companies to practice responsible mining and remember to safeguard the environment for the benefit of current and future generations.
“My tour of ZimAlloys today has been an eye-opener and showcases the Second Republic’s huge strides in delivering tangible signature programmes and projects,” he said.
“Zimbabwe is indeed open for business, and Vision 2030 is realistic and achievable.”
Online Reporter