Zimasco feels Covid-19 pinch, halts operations

Michael Magoronga, Midlands Correspondent
FERROCHROME producer, Zimasco Private Limited, will suspend smelting and mining operations as the local industry sneezes from the effects of the deadly Covid-19.

Following Government’s move to reduce cross-border movement and self-isolation measures across the spectrum among other measures to minimise risk of exposure to the pandemic, Zimasco has said it was considering halting operations temporarily.

The stainless-steel market, where Zimasco also supplies most of its product, has been crippled by the effects of COVID-19 leading to reduced orders the ferrochrome. In an interview, Zimasco chief executive officer, Mr John Musekiwa, said the company had no option but to slow down production as the spread of the Coronavirus begins to be felt.

“Zimasco will temporarily halt its smelting operations as a response to the curtailment of stainless steel production that has happened in the steel making regions of Europe, United States of America and China over the last few months,” he said without giving a specific date.

Mr Musekiwa said the company was feeling the pinch of COVID-19, which has resulted in most stainless-steel mills across the world closing shop.

“In efforts to slow down the spread of COVID-19, many governments have introduced severe restrictions, which means that many stainless-steel mills across the world have had to stop or significantly reduce production,” he said.

“Our ferrochrome is consumed in these global stainless-steel mills as a result orders have been postponed or cancelled in response to these preventive drastic changes implemented across the world.”

Mr Musekiwa was quick to point out that the closure was, however, temporary.

“The closure of smelting operations is temporary and the operations will restart once market conditions are suitable for continued trade,” he said.

Zimasco is an integrated ferrochrome producer in Zimbabwe and operates chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and tributary operations along the Great Dyke of Zimbabwe. Zimasco’s non-core operations include coal-bed methane and ranching assets in Zimbabwe.

The company employs 750 workers directly and more than 1000 indirectly.