Chrome producers await Govt permits Chrome

chrome_001Chrome producers yesterday said they are still to be granted permits by Government to export unprocessed chrome following the lifting of the ban on ore exports in June. Raw chrome exports had been suspended since April 2011 to encourage local beneficiation of the mineral.

But the move resulted in the closure of some mines due to inadequate smelting capacity in the country, forcing government to lift the ban.

When the ban was lifted, Government also scrapped a 20 per cent tax it was levying on exports of raw chrome to improve the viability of miners, create jobs and increase revenue inflows.

On lifting the ban, Government said a strict monitoring framework would be implemented to monitor exports to ensure that there were no leakages.

All chrome exports will be conducted by the Minerals Marketing Corporation of Zimbabwe and facilitated by the Reserve Bank of Zimbabwe and the Zimbabwe Revenue Authority.

Zimasco general manager for marketing and administration, Clara Sadomba told New Ziana applications for permits to export were still being processed.

“Zimasco is yet to start exporting chrome ore as our application for an export permit is still being processed at the Ministry of Mines and Mining Development,” she said.

“We currently have over 20 000 metric tonnes of ore ready for export but are unable to continue to produce more tonnage before we export the current tonnage as money is not available to continue.”

Ms Sadomba added: “Zimasco, like other ferrochrome smelters in the country, is facing significant viability challenges given the low global prices for ferrochrome that have persisted since 2008.

“The chrome ore exports are extremely critical for the company as this trade will bring in much needed additional revenue. It is our hope that the permit is granted as soon as possible to assist the company.”

Another producer Zim Alloys, which is currently under judicial management, said they were also waiting for an export permit.

Chrome is used in industrial processes such as electroplating, which gives metal certain properties, including abrasion and wear resistance, corrosion protection, lubricity and aesthetic qualities.

Concentrated mainly along the Great Dyke, Zimbabwe has some of the largest chrome deposits in the world. — New Ziana

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