Zimasco To Increase Ferrochrome Production

Sinosteel Subsidiary To Treble Production

China’s Sinosteel Corporation has announced plans to increase production at its Zimbabwe Mining and Smelting Company subsidiary by 300 percent.

Mr Zhang Suwei, Sinosteel South Africa managing director, told reporters in South Africa that the firm will expand ferrochrome production from the current 210 000 tonnes a year to between 500 000 and 600 000 tonnes. Zimasco is said to have access to the world’s second largest reserves of chrome after South Africa. Two furnaces were opened in April last year following the liberalisation of the Zimbabwean economy.

Sinosteel has a 92 per cent stake in Zimasco and has an option to buy the remaining eight percent, however it is one of the companies expected to comply with Zimbabwe’s new Indigenisation and Economic Empowerment regulations that seeks to cede 51 percent shareholding to locals, regulations that have been greeted with a mixed response.