Zimasco switches off two furnaces

KWEKWE-based ferrochrome producer, Zimasco Private Limited, has temporarily switched off two furnaces thereby cutting operations by 25 percent as it seeks to mitigate against the ever-increasing production costs amid a global market downturn.

The development means that the company remains with four running furnaces as it continues to negotiate with key enablers of the smelting process, chief among them power supply, for more competitive pricing support and more viable cost of production.

Zimasco spokesperson, Ms Clara Sadomba, confirmed the development saying the macro-economic environment has not been friendly lately.

“Zimasco confirms the recent curtailment of its operations by 25 percent as we have temporarily shut down two of our six running furnaces,” she said.

“This is in response to the high cost of production of ferrochrome in the face of a global market downturn. The company, however, continues to engage with key enablers of our smelting process for more competitive pricing to support a more viable cost of production.”

Ms Sadomba said among the major challenges was the enormous electricity costs, which were chocking the production process.

“The major challenge is electricity costs. The macro-economic environment has also been challenging with significant exchange losses having been incurred for long periods, which also affected viability,” she said.

“We have seen some stability in this regard recently and we hope this continues.”

Zimasco is in the middle of an expansion programme at its Kwekwe plant, which will be Completed by mid-2024.

The project, which commenced in 2022, will see the company’s smelting capacity doubling from about 144 000 tonnes per annum to over 300 000 tonnes.

The ferrochrome expansion project consists of the construction of two modern furnaces at the East Plant as well as ore agglomeration and sintering plant with a capacity of 300 000 tonnes per year plus the refurbishment of two furnaces at the West Plant.

Ms Sadomba said critical value addition and beneficiation projects remain on course with refurbishment of furnaces 1 and 2 having been completed and commissioned in February and June 2023 respectively.

Construction of two brand new fully closed furnaces (Furnace 7 and 8) with expected production of 86 400 tonnes per annum is underway.

“Work is in progress and Furnace 7 is due for commissioning end of this year and Furnace 8 will be commissioned early next year,” she said.

Zimasco Private Limited

“The agglomerations and sintering plant (shaft and sinter plant), which will enable the utilisation of fine chrome ore and the smelting process is due for completion and commissioning in the first half of next year.

“The plant will produce 300 tonnes of sintered ore per annum and will provide a significant portion of feed to the new furnaces 7 and 8,” said Ms Sadomba.

The company has also seen mining operation projects being executed and commissioned during the last five years with key ones being the introduction of four chrome concentrates plants in the Norths Dyke (Mutorashanga and Impinge area) that have produced close to 1,5 million tonnes since 2017.

“The high-grade chrome concentrates production has been a valuable addition to Zimasco’s chrome output. The company’s mining division is developing two major and 12 medium-scale new dyke underground mines in the Mhondoro-Ngezi and Mutorashanga areas, all meant to sustain ore supply and support the smelter expansion projects,” said Ms Sadomba.-ebusinessweekly