adminTinashe Makichi Harare Bureau
Zimbabwe’s largest ferrochrome producer, Zimasco has ceded 50 percent of its chrome claims to the government to pave way for new investors to explore the chrome mining sector, a senior company official said. The move is in line with a directive that was given by the government last year which ordered two ferrochrome giants, Zimasco and ZimAlloys to cede some of their chrome claims.
Zimasco in total had 45,900 hectares and following the government’s directive, the giant ferrochrome producer ceded 22,700 hectares.
The government has argued that the two ferrochrome producers own about 80 percent of all chrome mining claims and some ground should be released for distribution to new investors.
The Herald Business is informed that the Ministry of Mines and Mining Development has written to Zimasco expressing their satisfaction with regards to land ceded by the ferrochrome giant.
“With regards to the government directive, we complied by ceding 22,700 hectares and they officially accepted what we did as a company,” confirmed Zimasco general manager (Administration) Clara Sadomba.
She said the company had been in discussion with the government and they finally reached an agreement.
Zimbabwe holds the world’s second largest deposits of chrome, which is smelted to produce ferrochrome, a raw material used in the making of stainless steel.
Pronouncing the directive last year Minister Walter Chidhakwa said Zimasco and ZimAlloys will be left with enough mining claims that would meet their production targets.
In 2014 Zimbabwe produced 260,000 tonnes of high-carbon ferrochrome, which was 2,3 percent of global output.
Zimasco produced 68 percent of Zimbabwe’s ferrochrome in 2014. In June last year the government temporarily lifted a ban on raw chrome exports introduced four years ago and scrapped a 20 percent export tax on the metal, as it aims to boost earnings from the struggling sector.
The government had directed that it was not going to issue Zimasco and ZimAlloys with licences to export raw chrome until discussions on ceding some of the mining concessions held by the two companies are concluded.
The ceding of claims is part of government’s use-it-or-lose-it policy which seeks to wrestle away mining claims which are not being explored, but owned by huge mining corporates.
The government in 2006 directed Zimbabwe’s biggest platinum producer, Zimplats to release ground with 36 million ounces worth of resource, the two ferrochrome producers have also been asked to do the same.
Last year the government also set up a special purpose vehicle which small-scale miners have been using to export chrome ore or concentrate in bid to accelerate the exportation of the mineral following the removal of an export embargo.
Chrome ore exports were banned in 2011 to promote value addition and in the pursuit of regularising the export of chrome ore this time, smelters and small-scale miners are expected to adhere to registration of chrome smelters to export excess chrome ore.
Small-scale miners have been exporting their chrome ore or concentrate through a special purpose vehicle, Apple Bridge Investments but the ore delivered has been low.
Online Reporter