Zimasco eyes major turnaround

Business Reporter

ZIMASCO judicial manager Reggie Saruchera has said there are enormous prospects of a massive turnaround of the miner’s operations mainly driven by firming global ferrochrome prices. Giving an update to creditors, Mr Saruchera who is managing partner at Grant Thornton and Calmesa said there were enormous prospects for revival following the granting of an export licence by Government.“We have set out several initiatives aimed at reviving the company and we have been in close consultation with shareholders of the company who have since committed $6,6 million towards the cause,” said Mr Saruchera.

He said the first tranche of $3 million from Sinosteel Corporation has since been released to the company while the remainder will be released in due course. Mr Saruchera also said the company is pinning its hopes on the lease agreement with South African company, Portnex International. Zimasco signed a lease agreement in December last year with Portnex, for the lease of three of its West Plant furnaces which had been idle since 2014 due to low ferrochrome prices. The lease agreement runs for a period of five years to November 2020.

In addition to leasing its furnaces, Zimasco is providing Portnex with support services on a cost recovery basis. These support services include: Laboratory, Weighing, Sizing and crushing, Transport, Security, Secondary metal recovery. Mr Saruchera said Portnex have been paying their rates.

Zimasco recently secured an export licence that will see the company exporting 240 000 metric tonnes per annum. Mr Saruchera said the company has so far exported about 40 000 tonnes of ferrochrome and is looking at producing 20 000 tonnes per month by December this year. In line with its business recovery plan and following a number of productivity improvement initiatives, Zimasco has started its smelting operations.

“Revenue streams from the smelting operations will be complemented by the company’s chrome ore exports together with its metal recovery operations as the Company steers itself to profitability.

He said the company has also resumed operations of two other furnaces and is now up to date on the judicial management payroll and creditors.

“The objective of judicial management is to return Zimasco to viability, get workers back to work and settle creditors their pre-judicial management debts. “We are convinced that if we all put our efforts together, we will turnaround the fortunes of Zimasco for the benefit of all the stakeholders,” said Mr Saruchera.