Govt bans raw chrome exports

Harare (New Ziana) – The Zimbabwe government on Tuesday announced an immediate ban on raw chrome exports citing sufficient smelting capacity in the country.

Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said the ban was part of strategies to ensure the achievement of a US$12 billion mining industry by 2023.

“A cumulative twenty-two smelters are now operating and are shared among nine foreign and local companies. Unless chrome mining capacity is expanded, the smelting operations could soon face the challenge of insufficient feedstock in the form of chrome ore,” she said.

“In light of the need to safeguard the ferrochrome industry in the above regard, Cabinet approved a total ban on exports of raw chrome ore with immediate effect. The ban will capacitate current smelters and maximize the value chain to be realized from the country’s abundant resources as spelt out in the National Development Strategy 1.

“Cabinet (also) approved the total ban of export of chrome concentrates with effect from July 2022. This gives producers of chrome concentrates a year within which to make suitable arrangements for the value addition of the concentrates, the investment of which is low capital cost and relatively easy. Accordingly, exports of any consignment of raw chrome will only be allowed provided that all the smelters are not in a position to take up and utilize that particular consignment.”

Zimbabwe holds the world’s second largest chrome resources after South Africa.

Meanwhile, Mutsvangwa said Cabinet also approved another key strategy in the gold sub-sector which is crucial to the US$12 billion mining industry target.

She said Cabinet gave its nod to the establishment of gold centres which will provide basic equipment such as compressors and jack hammers as well as working capital to facilitate optimal production by small-scale miners.

“The Reserve Bank of Zimbabwe shall maintain presence, directly or through approved buying agencies, at all gold centres so as to buy all the gold produced. The gold centres will also provide technical services to miners who supply the ore.

“Cabinet approved proposals for the establishment of over twenty gold centres by mid-2022. Accordingly, memoranda of understanding will be signed with four investors who have been identified for the purpose of setting up the gold centres. The investors will own 100 per cent equity in the Centres, while those who operate joint ventures with the Ministry of Mines and Mining Development will fully fund the operations of the centres in return for a 90 per cent equity stake,” she said.

Mutsvangwa said some of the gold centres will be located in Odzi, Mount Darwin, Shamva, Mazowe and Silobela gold producing areas.
New Ziana