Zimasco finalises expansion plan

ZIMBABWE Mining and Smelting Company says its ambitious US$300 million expansion plan involving upgrading its blast furnaces will start in the second half of this year.
The chief executive Mr Sydwell Jena said the contracts and arrangements for the programme were being finalised.
Phase One involves the reconstruction of Furnace Number two at a cost of US$35 million. A new furnace will be constructed as part of the second phase.
This will be followed by the construction of a modern chrome smelter, a pelletesing and sintering plant and a 60MVA furnace costing between US$250 million and US$300 million.
The pelletesing and sintering plant is of the latest technology in ferrochrome production, which is effective in processing alluvial chrome ore.
It is a strategic investment for Zimasco, considering that 50 percent of its resources are in alluvial form.
“We anticipate that the reconstruction of furnace Number 2 will be done by 2012,” Mr Jena said.
Zimasco’s Furnace Number 2 had not been operational for the last five years after it was damaged by fire.
“Once completed, Zimasco’s ferrochrome production will increase from the current 175 000 tonnes to 230 000 tonnes per annum,” he said.
“Currently Zimasco’s ore requirements per annum for the production of ferrochrome is
550 000 tonnes. Completion of phase two will see Kwekwe smelter ore requirements increase to 1 000 000 tonnes per annum,” he said.
Both phases of the expansion will result in a proportional increase in labour for both mining and smelting operations, Mr Jena said.
Zimasco, which accounts for about 1,2 percent of the global ferrochrome output was forced to close operations in December 2008 when the stainless steel and its ferrochrome supplies were affected by the global financial crisis.
Zimasco exports 50 percent of its products to Europe and 30 percent to Asia.
The company resumed operations in April 2009 when the trading environment improved, starting with two furnaces.
By April last year, Zimasco, which employs about 9 000 was firing all its operational furnaces and is now operating at full capacity. – New Ziana/Business Reporter.