US$1,4m boost for Sable Chemicals
AMMONIUM Nitrate producer, Sable Chemicals has accessed US$1,4 million in foreign currency for the importation of key raw materials to enable the company to produce more fertiliser for the 2020/21 summer cropping season.
Government has contracted Sable Chemicals to supply 30 000 tons of ammonium nitrate (AN) fertiliser for the 2020/21 farming season. The production process had been hampered by lack of foreign currency.
Since switching off its electrolysis plant two years ago, Sable Chemicals has been importing its major raw material, ammonia, from South Africa and is looking for other avenues of either manufacturing nitrogen or purchasing the commodity locally.
As part of its sixth 100-day cycle projects, the Government stepped in and ensured the company accessed the much-needed foreign currency through the forex auction system. In a post Cabinet briefing to journalists on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said Cabinet noted that the project was key in supporting the Agricultural Recovery Plan through the provision of affordable local fertiliser.
“The Minister of Industry and Commerce (Dr Sekai Nzenza), informed Cabinet that Sable Chemicals has accessed US$1,4 million in foreign currency, which is enough to import ammonia to produce 5 500 metric tons of AN fertiliser, valued at US$1,35 million,” said Minister Mutsvangwa.
The fertiliser will be supplied to CBZ Agro yield, ZFC and Omnia. The move by the Government is expected to ultimately enhance production and reduce reliance on food imports. Minister Nzenza recently toured the Sable plant in Kwekwe where she reiterated Government’s support for the company’s import substitution strategy.
The company is already working on a US$25 million two-year expansion programme that is meant to increase production while eliminating reliance on importation of raw materials, which drains the economy of scarce forex resources.
Sable is on record saying given enough support, the company, which has a plant that produces 240 000 tons of AN, has the capacity to produce enough fertiliser for export. The Kwekwe-based company recently began production of agro-chemicals, pesticides and insecticides.
Through its Sable Farm, the company is currently training farmers drawn from the mining town and its surroundings on the Intwasa/Pfumvudza farming programme, a key intervention by the Government and its partners towards enhancing food security.
The training is being done under a partnership between Sable Chemicals and the Government and has so far benefitted 300 farmers.-chronicle.co.zw
