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Minister Walter Chidhakwa

MINES and Mining Development Minister Walter Chidhakwa says the government will only issue chrome ore export licences to Zimasco and ZimAlloys on condition they cede some of their underutilised mining claims. The two companies own vast tracts of mining claims that are lying idle. Despite the lifting of the ban on chrome ore in June, companies exporting the mineral still need to secure export licences so that the government can monitor the exports.

The ban on raw chrome exports was lifted to enable players in the mining sector to dispose of huge stockpiles of the mineral. In an interview, Chidhakwa said Zimasco and ZimAlloys virtually own all the chrome claims in the country and should relinquish part of their concessions as a precondition for the government to grant them export licences.

“As a ministry, we want to finalise the issue regarding the release of the ground by Zimasco and ZimAlloys before we start talking about the export licences. I’ll not sign any export licences for the two companies until such a time we’ve finalised the release of ground,” he said.

“We’ve no intentions of strangling the companies so that they’re not able to operate but, we’ve every intention of leaving them with enough ground to enable them to run their operations.”

He said the government wants to make sure that mining claims that were not being used by the two companies are available to other investors. Zimasco general manager administration Clara Sadomba said her company remains in discussion with the government over the release of underutilised claims.

“Zimasco is yet to receive an export licence for the exportation of raw chrome. As such no tangible benefits have accrued to the company through chrome exports. Zimasco remains in discussion with the Ministry of Mines and Mining Development on this matter,” said Sadomba.

“Zimasco has in excess of 30,000 metric tonnes of Chrome ore concentrates that we’ve earmarked for export and hope we’ll be able to begin chrome ore exports in the near future.”

Should the ferrochrome processor secure an export licence, it would be able to offload its huge stockpiles of chrome ore in Mutorashanga, Kwekwe and Shurugwi. Meanwhile, according to New Ziana, Zimasco has retrenched over 800 employees at its Mutorashanga and Kwekwe mines owing to viability challenges.

A source who requested anonymity told the news agency that operations in Mutorashanga were recently suspended and workers have been put on unpaid leave. “This also applies to workers in Kwekwe, we had only two furnaces running but they were shut down on December 10.

“All the chrome ore was shipped and the batch of ore that was in transit was cleared on Thursday (December 17). “Workers and contractors were briefed on the development last week,” the source was quoted as saying.

“Workers were put on unpaid leave on rotational basis, two weeks in-two weeks out or one week in and three weeks depending with the departments.  “However, tributors and contractors will continue mining since they were given the green light to mine and sell to third parties.”

Sadomba could neither deny nor confirm the development. Instead, she referred New Ziana to stories that appeared in some of the local daily publications on Thursday concerning an agreement ($12 million lease agreement) the company signed with a South African based firm to operate its furnaces.

The agreement is expected to resuscitate operations at the ailing company and see the 800 workers re-employed. — Business Correspondent/New Ziana.