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buying ore from the small-scale miners in the northern parts of the Great Dyke and has slashed wages for its own staff in Mutorashanga.
The company cites high electricity costs, high interest rates and unaffordable taxes for the major cut-back in operations.
The suspension in ore buying has hit thousands of small scale miners contracted to supply chrome ore to the company along the upper Great Dyke; these miners have been servicing Zimasco claims since the company stopped direct mining in the area in the 1990s.
The company’s North and Middle Dyke division general manager Mr Namatai Mapfumo last week wrote to the small scale miners informing them of the suspended operations.
The areas affected by the decision include Mhondoro-Ngezi, Darwendale, Mapinga, Mutorashanga and Guruve where high concentrate chrome ores known as D23, D24 and D30 are produced.
“As officially advised in the meeting called for that purpose which was held in the Zimasco operations board room between Zimasco management and Small Scale Tributor Committee on the 25th July, 2012, this letter serves to confirm that D23 production will be suspended with effect from 26th September 2012 until further notice,” he said.
According to minutes of the July 25 meeting, Mr Mapfumo told the Small Scale Tributor Committee that operations in the area had become too costly.
“However, the situation for the organisation remains very difficult due to domestic financial pressures exerted by Zesa tariff increases, increases in mining fees and taxes and high cost of borrowing from the banks,” he said.
Mr Mapfumo told the committee members that there were no signs of improvement on the market with regards to chrome prices.
He said the third quarter prices of chrome ore were US10c lower than those of the second quarter. Mr Mapfumo said cash flow problems had forced the suspension of the rebuilding of Furnace II at the smelting plant in Kwekwe, while Furnace III was put offline.
The company was represented at the meeting by Mr Mapfumo (chair), Mr Abraham Nyamwela (mine manager North Dyke) Middle Dyke mine manager Mr Tody Chisare, Contract Mining Manager North Dyke Cansio Zvoushe (recording) and Mr Charles Mlambo, the company’s finance and administration manager. A decision was taken at the meeting to reduce ore production in line with operating furnaces.
“In (the) process, the expensive ores were affected first, followed by reduction in some ores perceived not so expensive,” read minutes of the meeting.
“D23 ores will be taken off the Mines Production Schedule effective end of September 2012 and all D23 operations will be stopped, while D24 and D30 will be reduced.”
Zimasco stopped active mining of chrome in the 1990s and most of its claims were being serviced by small scale miners and co-operatives. There are 26 co-operatives and small scale mining ventures linked to Zimasco’s North Dyke, while 12 others operate along the Middle Dyke.
All these tributaries operate through Zimasco offices in Mutorashanga.
Permanent workers at Zimasco in Mutorashanga have been advised that the company would now be operating at 50 percent.
The workers, who had their salaries cut by 20 percent earlier this year, work two weeks a month.
Zimasco chairman Professor Deng Jian and services director Mr Josphat Zvaipa could not be contacted for comment as they were said to be locked up in meetings since Monday of last week.
The small miners’ representatives, who preferred anonymity feared that Zimasco would close operations after the suspension.
They urged Government to lift a ban on chrome ore exports and let them find their own buyers.
“There is nothing we can discuss come December because mines would be shut down. We are afraid Zimasco is preparing to shut down for good,” a representative of the committee said.
The miners said the Zimasco tributaries employed close to 5 000 workers, while another 5 000 people had businesses linked to their operations.
“Zimasco owns the claims but they should allow us to continue mining while we look for alternative buyers,” the representatives said.
Online Reporter