THE Zimbabwe Mining and Smelting Company’s judicial manager has applied to the High Court to have the Kwekwe-based ferrochrome producer removed from judicial management.

The company was placed under the judicial management in 2016 after failing to service its debts that had ballooned to over $65 million in 2015 from about $38 million in 2009. Grant Thornton managing partner, Mr Reggie Saruchera is the judicial manager.

“We are happy to announce that we have applied to the High Court to remove Zimasco from judicial management. If successful the court will hear the case next week on Wednesday. We are not opposing it; our creditors have also consented to a scheme of arrangement; therefore we are hopeful that it will be granted,” said Mr Saruchera.

Zimasco is indebted to different creditors including banks and retrenched workers to the tune of about $130 million. The scheme of arrangement will see the company paying our creditors on a time frame ranging between four and five years. So far, Zimasco has paid $33 million to various creditors.

During the period the company was under judicial management, the company generated $158 million revenue while profits came in at $45 million. The company is now targeting to produce 560 000 tonnes of chrome ore and 120 000 tonnes of ferrochrome.

Last year, Zimasco mined 350 000 tonnes of chrome ore and smelted 100 000 tonnes. Zimasco spokesperson, Ms Clara Sadomba, said the company was looking at raising production this year.

“We have five furnaces, which have the capacity to produce 180 000 tonnes of ferrochrome per annum. Currently four furnaces are operational meaning we are utilizing 80 percent of our capacity. A South African company Portnex is utilizing two of those four furnaces on a leasing arrangement while Zimasco is running the other two furnaces,” she said.

Ms Sadomba said inadequate and obsolete road and rail infrastructure was affecting operations.