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Auxilia Katongomara, Chronicle Reporter
CAPACITY utilisation at local fertiliser companies has increased from 25 percent to 40 percent with Sable Chemicals expected to produce 7 000 tonnes of ammonium nitrate following the enactment of Statutory Instrument 64.

Industry and Commerce Deputy Minister Cde Chiratidzo Mabuwa told Senators that Sable Chemicals has so far produced 1 500 tonnes of ammonium nitrate also known as top dressing since it resumed production in April.

Cde Mabuwa said Government through her Ministry continues to implement specific policy easures and strategies as a way of capacitating and promoting the local fertilizer companies.

“The Government, through the Reserve Bank of Zimbabwe (RBZ), mobilised resources to avail to local fertilizer firms to enable them to retool and modernise.

“During the last quarter of 2015, Zimphos secured a $10 million loan from the RBZ. Of that amount, $5 million has so far been utilised at Dorowa Mine to buy equipment as well as refurbish the plant,” said Cde Mabuwa.

She said as a result of the intervention, Dorowa Minerals is now operating at 60 percent capacity utilisation.

“The remaining $5 million is currently being utilised to rebuild the sulphuric acid plant at the Zimphos Msasa plant.

“About $1,8 million has so far been invested in the project, which is now 25 percent complete and the company expects to finalise the project during the first quarter of 2018,” said Cde Mabuwa.

ZimPhos manufactures superphospates while Dorowa Minerals produces for fertilizer production.

Cde Mabuwa said Government, through the National Social Security Authority (NSSA), extended a $20 million facility to local fertiliser companies to capacitate them for local production.

The Deputy Minister said the uptake of these funds by the companies will further lead to an increase in capacity utilisation.

She attributed the increase of local fertliser production to the removal of products such as Urea and Ammonium Nitrate, Compounds and Blends from the Open General Import Licence under the Import Management Programme.

“So far, local manufacturing capacity in the fertilizer industry as a whole, has increased from 25 percent to 40 percent.

“May I also advise the August House that the sole ammonium nitrate producer in the country, Sable Chemicals, resumed production in April 2017,” she told Senate.

“Currently, 1 500 tonnes of ammonia is in stock and an additional 2 000 tonnes is expected by mid-May. This development is expected to lead to a combined ammonium nitrate fertiliser output of about 7 000 tonnes”.

Cde Mabuwa told Senators that the Government programme on Command Agriculture has contracted local firms to supply both top dressing and basal fertilizer to farmers.

“This programme continues to create local demand for fertilizers from the local companies thereby stimulating production,” she said. — @AuxiliaK