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Chromite

Business Reporter
ZIMBABWE has generated about $22.6 million from 153 000 tonnes of chrome ore exported through toll arrangement since last year, an official has said.

Speaking during a small-scale miners’ conference in Bulawayo on Friday, Minerals Marketing Corporation of Zimbabwe (MMCZ) acting general manager responsible for marketing, Mr Masimba Chandavengerwa, said:

“We have moved 153 000 tonnes since that arrangement (toll arrangement). Right now the country has realised $22.6 million; under that arrangement, the miner gets upfront the value of ore and then together with MMCZ, we then follow the alloy.

“And to date, up and above that $22 million the alloy that we have sold we have realised an additional $6 million”.

Under the toll arrangement, some of the exported chrome ore was smelted in South Africa generating the additional $6 million.

Turning to the Government’s Special Purpose Vehicle, Apple Bridge which was established to facilitate the exportation of chrome ore or concentrate by small-scale miners, Mr Chandavengerwa said in the first  year of its formation, about 25 000 tonnes were exported.

He said the exports by small-scale miners through Apple Bridge in the first year were not significant due to a myriad of challenges that the miners in the sector faced.

In 2016, Mr Chandavengerwa said, the small-scale miners through Apple Bridge exported 75 000 tonnes of lumpy chrome and so far this year, Apple Bridge has moved about 57 000 tonnes with $15.5 million having been generated.

The SPV was established to accelerate the exportation of the mineral following the removal of an export embargo.

“The smelters have moved 237 000 tonnes of ore into exports but what is important when you look at those numbers is what has been happening in terms of smelting. In 2015, they were sitting on 205 000 tonnes of alloy and in 2016 about 250 000 tonnes and in the first six months this year already they have moved about 150 000 tonnes. Eventually we have realised $465 million,” he said.

In June 2011, the Government lifted the ban on the export of chrome ore of up to 30 million tonnes to enable the sector to mobilise financial resources as well as investment in technology.

The Government also removed the 20 percent export tax to allow chrome ore producers to generate income to increase smelting capacity.

Power tariffs for the chrome sector were reviewed downwards to 6.7 cents per kilowatt hour from 8 cents.

@okazunga