Lobby against prohibitive import duty
Kwekwe-based mining consumables concern, Intrachem Pvt Ltd, is currently lobbying for import duty on some of its raw materials to be reviewed downwards to enhance the firm’s foothold and competitiveness on the export market.
The company is also in the final stages of constructing a mining industry consumables factory that is set for commissioning in September.
It is believed that the factory will help the country save up to US$20 million annually through import substitution.
With an exclusive distributorship licence of mining consumables from Peru to Africa, Intrachem has been finding it difficult to price its products due to the high import duty.
Presently, the bulk of its exports are going to the small-scale mining sector in countries such as Tanzania.
“The other big drawback has been the duties the raw materials are attracting duties, which makes us uncompetitive,” said Intrachem managing director Langton Nyandoro on the sidelines of a site visit of the firm by Mines and Mining Development Minister Winston Chitando recently.
“So we have been engaging (the Ministry of) Industry and Commerce (and) Ministry of Finance and Economic Development. Work is still in progress but some progress has been made, but I think it’s very critical that area is addressed for us to be able to be competitive with other regional manufacturers.
“We have already started, we are exporting to the small-scale mining sector in Tanzania. . . but because of the duties again, our prices are not that competitive,” he said.
Finance and Economic Development Minister Professor Mthuli Ncube has been emphasising the need to grow the country’s exports as a means to boost earnings, improve the country’s trade balance and create jobs.
Intrachem’s consumables’ factory, which is under construction, will initially target bulk emulsion consumables that are pump-able and are used in both surface and underground mining.
The firm is also seeking to commission its second phase and preparatory work has already started.
Construction is, however, expected to begin during the first quarter of 2021.
Like other business players the world over, the company has had to grapple with Covid-19-induced lockdowns that have slowed business.
It has, however, benefited from Government’s business exemptions that have been extended to various sectors, particularly mining and agriculture.
“. . . things have slowed down, but luckily, we have found solutions working with our technical partners,” said Nyandoro.
Intrachem is a wholly Zimbabwean-owned company with technical partners from the United States of America.–chronicleoc.w
