by Rudo Saungweme

A Gweru-based ferrochrome producer Zimbabwe Alloys Limited (ZimAlloys), is engaging Zimbabwe Asset Management Company (ZAMCO) to take over its sixty million United States Dollar debt following the failure by an Indian investor, Balasore Alloys Group to fulfil its investment proposal of injecting capital to ZimAlloys.

ZimAlloys is also in an effort to refurbish its blast furnaces and also to construct new smelting and washing plants.

One insider who refused to be named said, “We are looking forward to this development as it will create employment for the locals who are in dire need of employment. We are also happy that the take-over of ZimAlloys debt will enable the former to unlock fresh capital.”

It is alleged that, as at 12 September 2018, ZimAlloys owed its major creditors forty seven million United States Dollars. However, ZimAlloys is  planning to construct a Chrome smelting furnace worth US $8 million so as to enhance revenue generation capacity thus debt repayment ability.

ZimAlloys is currently exporting ten thousand tonnes of Chrome ore and one thousand two hundred tonnes of High Carbon FerroChrome per month, through dump reclamation.

Harare Post has learnt that ZimAlloys terminated the agreement with Balasore Alloys Group after it failed to avail the money which it had promised. It is alleged that, Balasore Alloys Group was supposed to inject the money in January 2018 but up to now ZimAlloys have not received anything.

ZAMCO was established by the Central Bank to absorb NPLs that would have reached alarming levels at over seven hundred and fifty million United States Dollars soon after the introduction of the multi-currency regime. The company has also bailed out some local companies and parastatals that were on the verge of collapse.

The take-over of ZimAlloys by ZAMCO is tantamount with the new dispensation`s thrust to ensure the revival of industry and creation of jobs.