Monday, June 1, 2009

Zimbabwe To Ban Raw Chrome Exports

The Government in Zimbabwe is to impose a ban on the export of raw chrome without value addition as the country is losing revenue, Minister of Mines and Mining Development Obert Mpofu said in a telephone interview.

Consultations with chromite exporters to add value to the mineral were also under way.

Mr Mpofu said some companies had resumed the smelting of chromite ore to ferrochrome while negotiations with exporters were ongoing.

“Negotiations have reached an advanced stage to ensure that they process the mineral before exporting so that the country could get more by way of churning out a semi-finished product.

“We are engaged with chrome ore exporters to ensure that they process their chrome to ferrochrome before exporting it,” said Minister Mpofu.

The minister said companies like the Zimbabwe Mining and Smelting Company (ZIMASCO) and ZimAlloys had already started smelting chrome.

He said even small-scale players would be taken on board so that they enjoy the various deals and arrangements that have been struck by the Government.

“The Government will also be seeking to promote small-scale chrome miners to set up more smelters around the country while imposing a total ban on the export of chrome without value addition,” he said.

There are many buyers in South Africa, China and Europe willing to buy stockpiles of the mineral.

The Government has embarked on the resuscitation of closed mines that have potential to benefit the country through value addition.

Under the Short Term Emergency Recovery Programme the exploitation of chrome was given priority as the country had huge reserves of the mineral. Zimbabwe has the world’s second largest chrome reserves.

“The inclusive Government will therefore take advantage of the existing beneficiation facilities to refine all important base metals which include chrome, copper, nickel and iron ore,” read the STERP document.

STERP noted that the low level of beneficiation and value addition to our mineral resources limits the contribution of mining to the revival of the economy.
Under STERP initiatives to increase beneficiation and value addition for all major minerals including gold, platinum, nickel, copper, coal, coke, and other various non-ferrous ores and concentrate would also be undertaken including penalties for the export of raw minerals where value addition options are readily available.

Presently, virtually all diamonds, emeralds and semi-precious stones are exported in raw form, while a small percentage of gold is manufactured into jewellery.
“This process will take advantage of the existing local gold refinery and mature jewellery industry, which will make it immediately and commercially feasible to add value to our mineral resources,” reads STERP in part.

Capacity to beneficiate industrial minerals remains low and it requires more effort to increase beneficiation capacity in the medium to long-term.

Chrome mining is undertaken in Shurugwi, Mutorashanga, Lalapanzi and Guinea Fowl with the smelting being done in Kwekwe.

Chrome mining in Shurugwi started as open cast workings in 1905.

Source: The Chronicle, Zimbabwe

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