adminMartin Kadzere and Tinashe Makichi
ZIMASCO, a unit of China’s Sinosteel Corporation has completely stopped operations at its ferrochrome refinery in Kwekwe after switching off furnace number five and six.
These were the only running smelters as the company had already switched off other furnaces due to low cash flows resulting from subdued international ferrochrome prices.
Despite shutting down the furnaces, Zimasco, the country’s largest ferrochrome producer in terms of capacity, said tributors and contractor mining operations will not be stopped as long as tributors and contractors are able to secure third party buyers.
Chrome miners under tribute agreements were not allowed to sell to buyers of their choice. Many small scale chrome producers are on the tributes of either Zimasco or ZimAlloys.
“This action brought to a halt the smelting operations of the company as these were the only two furnaces running,” Zimasco general manager-mining Mapfumo said.
He said the decline of global prices has seen the company failing to meet operational requirements. Furthermore, the weak market and regional drought have seen some of the company’s major customers curtailing standing orders, he added.
Bongani Moyo
Online Reporter