Chronicle EditorMunyaradzi Musiiwa Midlands Bureau
KWEKWE-based chrome smelting company Zimbabwe Mining and Smelting Company (Zimasco) will come out of judicial management next month. This comes after the firm made a turnover of more than $158 million in the past 16 months.
Zimasco judicial manager Mr Reggie Saruchera of Grant Thornton International confirmed in an interview last week that the firm would be weaned off next month after being under judicial management for close to two years . He said the company recently invited creditors to deliberate on the way forward, which also cleared the way for it to settle its debts.
“We recently had a meeting with Zimasco creditors to discuss the scheme of arrangement, said Mr Saruchera. They voted in favour of it. The company will be standing on its own by end of next month and will no longer be under judicial management. We are just waiting for a handover/takeover.” Since the beginning of the year, Zimasco has contributed over $103 million to the country’s total chrome proceeds.
“We are happy to announce that we have managed to turn around Zimasco during the first 16 months of judicial management, said Mr Saruchera. Zimasco has made a turnover of more than $158 million and a profit of more than $45 million.” Zimaso owed a total of $144 936 691 to creditors, including $21 780 307 to Sinosteel Singapore (in liquidation), $11 350 142 to Sinosteel International and $3 309 850 to the National Social Security Authority, pension funds and NEC.
It owes financial institutions $34 738 364, $7 295 513 for retrenchment packages, $2 787 316 towards salaries and wages arrears (three months), among other creditors. Zimasco, an integrated ferro-chrome producer with chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and operations along the Great Dyke, has been in the doldrums for the past decade, but is now realising a turn of fortunes.
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