‘Tributary agreements stifle chrome production’ Wellington Takavarasha
Wellington Takavarasha

Wellington Takavarasha

Tinashe Makichi, Harare Bureau
Small-scale chrome miners say the continued existence of tributary agreements with the major chrome claim holders is stifling production of the mineral in the country.

The tributors are complaining that Zimasco and ZimAlloys have been dictating the price of the ore leaving very little room for negotiations.

Zimasco and ZimAlloys mine chrome but the bulk of the ore is mined by contractors or tributary miners who work on their claims and supply the companies with the ore.

Zimbabwe Miners Federation chief executive Wellington Takavarasha said the existence of tributaries remains an issue when it comes to chrome production by smal-scale miners.

“The existence of tributary agreements between small-scale miners and those big players who own chrome claims has remained an issue.

“The government has been negotiating with those big players to surrender part of their claims but no concrete position has been reached so far.

“In this case small-scale players are mandated to sell to Zimasco or ZimAlloys as espoused in the tributary agreements. Sometimes the small-scale producers fail to get payment for their ore as they are told that there is no cash,” said Takavarasha.

He said chrome claim holders, especially ZimAlloys, are now taking advantage of those tributary arrangements to make super profits
Chrome mining in Zimbabwe is mainly concentrated on the Great Dyke and is estimated that the Dyke hosts about 10 billion tonnes of unproven reserves.

Most of the chrome claims are located in Mutorashanga, Chegutu, Kadoma, Kwekwe and Lalapanzi.

Despite the huge deposits of proven and unproven reserves in the ground, the country is not recognised as a significant producer on the world market, an indication that the country is failing to fully exploit this mineral to its advantage

“ZimAlloys and Zimasco are holding on to an important resource which they are unable to convert to optimal use, yet on the other hand there are small-scale miners who are failing to acquire high-grade ores to sustain and maximise their operations.

“Chrome mining has the potential to make meaningful contribution to the growth of the economy through revenue generation and employment creation,” said Takavarasha.

He said the deal recently agreed between Zimasco and a South African company has further left small-scale chrome miners in the dark as they are afraid of the unknown.

“On this Zimasco partnership with a South African firm, small chrome miners are not sure of what would be the demands of this new marriage. At the moment its ZimAlloys and Zimasco who have control of claims,” said Takavarasha.

For the period 2009 to 2011, the chrome mining sector exported $53,6 million worth of the mineral from an average production of about 500 000 tonnes per year.

The highest production levels were recorded in 1997, 2001 and 2002 when the sector produced over 750 000 tonnes per year.

The lowest figures were recorded in 2009 when the country produced less than 200 000 tonnes.

The majority of the independent small-scale chrome producers began operations in 2009 when the government opened up a window of opportunity for miners to export chrome.

When the government closed that facility in 2011, there was a huge outcry from the small-scale producers that they had been deprived of an opportunity to participate in the chrome sector.

“The majority of small-scale miners are independent producers and it became difficult for them to sell their ore to the local smelters following the ban.

“Small-scale producers were left with no option but to sell to the local smelters who were offering uncompetitive prices despite the prevailing low global chrome prices.

“In the process, this created a standoff between the small scale producers and the local smelters. What we are fighting for as the Zimbabwe Miners Federation is freedom for the small scale miners, so that they can have a choice on where to sell their ore,” said Takavarasha.

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