Harare – Zimbabwe’s chrome production has taken a 39 percent fall in the period between January and June 2018 from 107 830 metric tonnes to 65 530 metric tonnes respectively attributed to a plunge in china demand.
It emerged during a consultative meeting on chrome in Harare yesterday that the mineral production has tumbled as China, which is the biggest buyer of chrome ore from Zimbabwe, closed several chrome ore smelting plants that were not meeting laid down environmental standards and as a result it affected the price and demand of chrome ore.
Minerals Corporation of Zimbabwe (MMCZ), deputy general manager, Masimba Chandavengerwa confirmed that the low productivity levels have been affected by both external and internal factors and that the board is trying to find ways to deal with the situation.
"Many things have been happening locally and internationally and that has affected the production of chrome.
“Therefore, the essence of this consultative workshop is to present the results of market analysis and map the way forward," he said.
According to Ferroalloynet.com, Zimbabwe chrome ore is more popular in China because of its attractive price.
China has for long remained Zimbabwe’s preferred chrome destination even though prices of base metals have remained subdued.
Zimbabwe Miners Federation President, Ms Henrietta Rushwaya, whose organisation plays a supervisory role in the production of chrome in the country cited logistical problems as hampering the production of chrome.
“Chrome is affected mainly by logistical challenges that hamper production especially small-scale miners and as a result, there has been a significant decline on chrome production since January,” she said.
Other issues that came up as major constraints in the sector are sanctions and restricted payment terms, as potential buyers are subjected to rigorous processes when they want to transfer money to Zimbabwe to buy chrome ore.
Zimbabwe Miners Federation spokesperson Dosman Mangisi has however said production was poised to surpass 500 000mt of chrome this year.
"Production is in line with our target. We are targeting 500 000 metric tonnes and this is achievable.
"We are witnessing a positive increase in both chrome ore and concentrates. Although we once experienced a decline in the sector, there is a positive trajectory," said Mangisi.
Zimbabwe has the world's second largest chrome reserves and statistics show that since a ban on chrome ore exports was lifted in 2011, the sector recorded exponential growth, coupled with a jump in production.
- EQUITY AXIS NEWS
