Firms set to benefit from chrome ore export exemption

GOVERNMENT has exempted the ban on the export of chrome ores for some firms in a move designed to allow them to raise the necessary capital to complete the construction and expansion of furnace, processing facilities and upgrade key mining technology.

The export of chrome ore and chrome concentrates was banned effective from July 2022 in a bid to capacitate current smelters and maximise the value chain to be realised from the country’s abundant resources as spelt out in the National Development Strategy 1.

Minister Monica Mutsvangwa

Chrome mineralisation occurs mainly in two forms namely, lumpy ores which are fed straight into furnace and alluvial ores, like sands, which are upgraded into higher value sands for feeding into furnaces, commonly referred to as chrome concentrates.

With the technology currently in use on most of the furnaces in the country, unless the concentrates undergo an agglomeration process, there is a limit to the extent to which they can be utilised in the furnaces.

Under vision 2030, President Mnangagwa’s administration has identified the mining sector as a key player towards realising an upper-middle income economy.

In a post-Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Senator Monica Mutsvangwa said the rationale for banning the export of ores and concentrates was for companies to invest in the requisite facilities to value-add to ferrochrome.

President-Mnangagwa

She said the policy still stands, and companies have started the process of constructing furnaces. However, to enable the firms to build furnace and processing facilities and upgrade technology, she said there will be an exemption on the ban of export of chrome ores by the concerned companies.

“To enable these companies to raise the necessary capital, Cabinet has approved recommendations by the Ministry of Mines and Mining Development for the exemption on the ban of export of chrome ores by the concerned companies, in order to complete the construction and expansion of furnace and processing facilities,” said the minister.

The ban on export was seen as a positive move by the Institute of Zimbabwe Foundries (ZIF) which said the bold stance was crucial for the metal foundry industry, which was facing challenges in securing inputs at affordable rates.

It was noted that Zimbabwe foundries will be able to get all grades of ferrochrome at better prices as opposed to current high import cost. Players in the sector said it was also key in safeguarding the ferrochrome industry including metallurgical processes such as steel manufacturing.

-chronicles