- First furnace operational since 2013
- US$45 million investment to restart two more furnaces
- Aiming for 120,000 tonnes of annual output
Harare- Zimbabwe Alloys Limited (ZimAlloys) has resumed production years after shutting down its furnaces according to the company’s Managing Director, Deric Dube. A registered company in Zimbabwe, ZimAlloys specializes in producing chromium ferroalloys, including ferrochrome and ferro silico chrome, from its facilities located in Gweru.
Founded in 1949 by a consortium led by the John Brown Group, ZimAlloys was the first company in Africa to operate a ferrochrome plant.
The business holds approximately 20,000 hectares of chrome claims across the country, with proven resources totaling 72.25 million tonnes of chrome ore.
However, only 15% of these claims have been extensively prospected.
Zimbabwe boasts the world’s second-largest reserves of chrome ore, following South Africa.
Last week, Dube, announced that the company has successfully fired up the first of its three furnaces for the first time since 2013 and the company is investing US$45 million to restart the remaining two furnaces, aiming for an annual ferrochrome output of 120,000 tonnes.
“We have resuscitated the first smelter and we are not stopping there.
“We plan to set up two more furnaces.
"We do have the resources to support that and we desire to see a return of ZimAlloys to the overall growth and development of ferrochrome production in Zimbabwe," Zimalloys MD Deric Dube said.
Currently, ZimAlloys operates three furnaces at its Gweru smelting complex, with a combined installed capacity of 120,000 tonnes per annum. The company produces around 8,000 tonnes of chrome concentrates and has plans to smelt additional alloys
The importance of ferrochrome to Zimbabwe cannot be overstated. As a key ingredient in stainless steel production, ferrochrome is vital for the country's industrial growth and economic development.
The ferrochrome sector provides significant employment opportunities, supports local businesses, and contributes to export revenues.
In 2023, Zimbabwe's exports of iron and steel reached US$390.19 million, marking a 67% increase since 2012. This highlights the sector's potential to drive economic growth and improve the balance of trade.
ZimAlloys experienced significant challenges in the past. Production halted in 2008 due to mounting debts after a commodity price crash. Following this, ZimAlloys was placed under judicial management in July 2014, transitioning to final judicial management later that year, with Grant Thornton as the judicial manager.
On May 26, 2021, the High Court of Zimbabwe granted an order to remove ZimAlloys and its chrome subsidiary from judicial management.
In 2018, an Indian firm, Balasore, attempted a US$90 million takeover but was unable to secure the necessary capital. Subsequent to these developments, Kuvimba took over ZimAlloys.
However, as ferrochrome production is highly energy-intensive, the company faces significant challenges due to Zimbabwe's electricity shortages.
Ferrochrome producers in the country consume up to 300MW of power, and with a national output of only around 1,300MW, this demand exacerbates existing energy issues.
To address its energy needs, ZimAlloys plans to install solar power system.
The Zimbabwean government has also entered agreements allowing producers to generate their own energy, with 300MW expected to be operational by 2026.
Electricity now accounts for 20% of miners’ costs, and the addition of ZimAlloys to the sector will further strain the country's already limited energy resources.
Zimbabwe has 14 ferrochrome producers, with Tsingshan's Afrochine in Selous being the largest, producing 100,000 tonnes annually.
In a bid to secure its ferrochrome industry, Zimbabwe has banned exports of raw chrome ore and plans to prohibit exports of chrome concentrates.
The country is rich in high-grade chromium ore, with deposits of approximately 10 billion tonnes, accounting for around 12% of the global total, according to the Ministry of Mines and Mining Development.
This strategic resource positions Zimbabwe as a key player in the global ferrochrome market, reinforcing its economic potential.
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