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Business Reporter
FIRMING global prices largely driven by depletion of stocks on the global market and the recovery of the South African rand are expected to boost Zimbabwe’s chrome export earnings, Apple Bridge Investment director Mr Masimba Chandavengerwa has said. South Africa and Zimbabwe, which hold about 80 percent of world’s chrome reserves, are the major producers of the mineral in the world.

South Africa was selling the commodity at low prices, taking advantage of the favourable exchange rate and high production volumes. “I would say there is a 10 percent improvement and at these levels, we feel this might be the right time to re-enter the market,” Mr Chandavengerwa said in an interview yesterday.

“We feel the firming of the South African rand, our biggest competitor and depletion of stocks on the global markets will sustain the recovery of chrome prices.” ABI is a Special Purpose Vehicle set up by the Government to facilitate chrome ore exports. Government lifted the ban on raw chrome exports in June last year to enhance viability of miners and improve liquidity. But exports have performed below expected levels.

The ban was meant to encourage beneficiation of the mineral. While the Government had imposed the ban on chrome ore exports to encourage firms to beneficiate the mineral, the suspension had a negative impact on producers, particularly small scale miners, some who were forced to shut down due to viability problems.

Small scale-miners could not sell their produce due to low smelting capacity in the country, leaving them with stocks of chrome ore and no alternative source of revenue. Mr Chandavengerwa said the vehicle had stopped exports due to poor international prices.

“It didn’t make sense to continue exporting and give miners $20 per tonne,” he said. “But with the current trend, miners can now get up to $50 net for the top grade and this is good for us.” He said Apple Bridge Investment was working on substantial orders from Asian markets and “we have told miners to brace for the recovery”.