MMCZ starts regulating domestic chrome ore sales
The Minerals Marketing Corporation of Zimbabwe (MMCZ) says it has begun to regulate domestic chrome ore sales with immediate effect following an outcry from the miners over low prices.
The move is coming as an intervention to ameliorate challenges currently faced by chrome miners across the country.
Local smelters have been buying chrome from local miners at sub economic prices, which is making it unviable for miners to remain operational.
Zimbabwe banned exports of raw chrome in July last year in a bid to push companies to invest in beneficiation facilities.
The country holds the world’s second-largest reserves of high-grade chromium ore after South Africa, with deposits of about 10 billion tonnes, equivalent to around 12 percent of the global total, according to the Ministry of Mines and Mining Development.
Local smelters have attributed the slump in prices to a dip in global ferrochrome demand due to the geopolitical situation dominated by the conflict in Eastern Europe.
Consequently, the leading producers have been forced to scale down operations.
Previously, local chrome sales were exempt from regulation by the MMCZ guided by the Statutory Instrument (SI) 111 of 1983 but the current state of chrome market has prompted the corporation to assume the regulatory position.
In a statement MMCZ announced that it was currently working towards establishing the necessary infrastructure and modalities of bringing the domestic chrome sales under its ambit.
“In light of the challenges being experienced by chrome miners, MMCZ intends to cancel the exemption for chrome ore (lumpy ore and concentrates/fines) domestic sales in line with Section 6 of the same SI.
“Once finalized, all stakeholders shall be advised accordingly,” MMCZ.
MMCZ chief executive Tongai Muzenda noted that the move intended to cushion chrome miners from low prices currently obtaining on the market.
“The main challenge being faced by chrome miners is that smelters are buying from them at very low prices, that is why we intend to cancel the exemption so that miners can survive,” said Muzenda.
In the meantime, MMCZ has advised the current minimum ex-works prices, with lumpy chrome ore price ranging between US$64 – US$75 while concentrates are pegged at a range of US$112 to US$134 for the third quarter of 2022.-ebusinessweekly
