adminTroubled ferrochrome producer, Zimasco plans to dispose of at least 400 000 tonnes of chrome ore fines stockpiled at its mothballed Kwekwe smelter. Zimasco, a unit of China’s Sino Steel Corporation, stopped operations at its Kwekwe refinery in December last year due to low cash flows resulting from subdued international prices.In a tender invitation, the company said: “Zimasco (Pvt) Ltd has a 400 000 metric tonne chrome ore fines stockpile at its Kwekwe smelter with an average chromium oxide content of 36. 54 percent and an average chrome to iron ratio of 2,02.”
“The minimum tonnage to be tendered for is 5 000 metric tons. Winning tenderers shall be required to pay a 10 percent deposit upon signature of the sale agreement and table a payment plan for the balance of the purchase for the chrome ore fines,” it said.
Zimasco said the minimum monthly payment shall be for 5 000 tonnes, with a maximum paying period of 12 months. Early this year, the High Court threw out an application by the company, which is groaning under a $65 million debt, for it to be placed under judicial management.
The company had identified Grant Thornton managing partner Reggie Saruchera as the judicial manager. The application came after the ferrochrome producer failed to service debts owed to various creditors, arguing that if placed under judicial management, it would be able to properly pay its debts and turnaround its fortunes.
At peak production, the ferrochrome producer earned an average $200 million annually.
The company has capacity to produce 180 000 tonnes of high-carbon ferrochrome a year, or 1, 2 percent of global production, according to its website. — New Ziana.
Online Reporter