By Chiedza Muswe
Cabinet has resolved that chrome mining claims will be reallocated to other companies which will receive mining claims to sustain and expand ferrochrome production.
Addressing the Post Cabinet Briefing yesterday, Information, Publicity and Broadcasting Services, Minister Monica Mutsvangwa shade light on the proposals for the re-allocation of chrome mining claims, which were ceded by ZimAlloys.
“These claims will be reallocated to other companies which will receive mining claims to sustain and expand ferrochrome production. As per Government policy, 20% of the ceded claims, being 2 348 hectares of the total ceded claims which are a total of 11 747 hectares will be allocated to war veterans”.
She said the method for the distribution of claims to war veterans will be announced in due course.
Cabinet further revealed the progress made by the Mines and Mining Development Ministry namely, the expansion of the coke oven production, the expansion of ferrochrome production, construction of a plant to manufacture explosives for use on mining activity, establishment of 5 gold milling centres which will be followed by an additional 20 centres and the implementation of an MMCZ credit scheme for small scale miners to be unveiled soon.
Zimbabwe ferrochrome production sector is dominated by four main players, ZIMASCO and ZimAlloys being the biggest and oldest producers. The other two, are small producers, Maranatha Ferrochrome and Oliken Ferroalloys.
Zimbabwe has seen a significant number of new investments in chrome ore mining and is well placed to benefit from the Chinese demand for Chrome. Demand for chromium alloys has been expanding by 5% annually over the past decade, the output of chromite ore followed closely with an average growth rate of 4.6% per annum.
Chrome provides an opportunity to promote Zimbabwe’s rich mineral resources and development and is an attraction for many investors in Zimbabwe’s mining sector. Zimbabwe holds the world’s second largest chrome ore resource of 900 million tonnes with about 12% of the global total, with South Africa leading the pack. Zimbabwe’s contribution to total global production of chromite ore has been at best 5% which shows its greatest impact on the world’s production.
Last year (2019)’s Ferrochrome production had a 20% increase with a capacity of 418 000 tonnes compared to 2018 production which produced around 350 000 tonnes, a positive indication of the country’s new capacity and what to expect by end of 2020.
