ZimAlloys, Zimasco re-opening sets Midlands on economic boom path

Munyaradzi Musiiwa, Midlands Correspondent
THE impending re-opening of Gweru-based ferrochrome producer, ZimAlloys and the rejuvenated Kwekwe-based smelting company Zimasco has rekindled hope for economic revival in the Midlands province.

Zimasco realised a turnover of more than $158 million and a profit of $45 million in the past 16 months that it has been under judicial management while ZimAlloys concluded a $100 million deal with an unnamed Indian Investor last week.

The positive developments at the two companies are expected to contribute immensely towards the development of the province, particularly the mining sector and help reduce unemployment. When combined, the two companies employ more than 3 000 people when operating on full throttle.

Zimasco judicial manager, Mr Reggie Saruchera of Grant Thornton International, said Zimasco was now operating at full capacity.

“The company is now operating at full throttle. We have invited our creditors to a scheme meeting this month to see how best we can stagger the payment over a period of four to five years,” said Mr Saruchera.

Mr Saruchera, who is also judicial manager for ZimAlloys, confirmed the conclusion of the company’s deal with an unnamed Indian Investor who they will identify this week. “The deal has been sealed but we will soon announce the investor. The investor is injecting more than $ 100 million into the Gweru-based company. We have since invited creditors and stakeholders to a scheme of arrangement meeting. The new investor will take over operations,” he said.

Midlands Minister of State for Provincial Affairs Jason Machaya said the positive developments at Zimasco and ZimAlloys would benefit the country’s economy, the chrome mining sector in the province and create employment. “This is a positive development (Zimasco and Zim Alloys reopening) to us as a province. Small scale miners in the province will also benefit from that considering that the two companies owned the majority of the chrome claims in the province. The country will also benefit because the minerals will be added value through smelting and this will fetch more money on the international market.

Apart from that the two companies will also help in reducing unemployment. Also people in the downstream industry will also benefit,” he said.

Minister Machaya said the revival of ZimAlloys would contribute significantly towards employment creation as well as attaining the $3 billion mineral export target.