THE Mines and Energy Parliamentary Portfolio committee has recommended that mining companies like Zimalloys and Zimasco be forced to release some of their ground and make way to smaller miners to exploit chrome reserves which are vast in the Great Dyke.
REPORT BY VENERANDA LANGA
The committee, chaired by Guruve South MP Edward Chindori Chininga, in its report on chrome mining in Zimbabwe presented to the House of Assembly last week, said the Ministry of Mines and Mining Development could force the companies to do that through the use of current legislation or crafting of a statutory instrument (SI) to force them to do so.
“Chrome mining in Zimbabwe is mainly concentrated on the Great Dyke and it is estimated that the Dyke hosts about 10 billion tonnes of unproven reserves, and almost 70% of these claims are in the hands of two companies,” Chindori Chininga said.
“Some of the chrome claims by the two companies were pegged as far back as 1904, a situation which had made it difficult for new entrants, especially the indigenous players to actively participate in the sector.”
Zimbabwe is regarded as the second largest chrome producer in the world after South Africa with 13,2% proven resources and yet there is 2% production output. The committee also raised in its report that Zimalloys, the second largest holder of chrome resources, had not been operating in the last 10 years resulting in all its mines closing, leaving ghost towns in its wake.
“In the absence of financial investment, the prospects of Zimalloys recovering from its predicament seem bleak. Government created an opportunity for Zimalloys to raise capital through chrome exports between 2010 and 2011 but this did not yield much result and the committee was informed the company required $22 million for recapitalisation,” part of the report reads.
“When the committee visited the smelting operations of Zimalloys only one small smelter was working and yet at peak periods the company had the capacity to operate seven smelters.”
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The committee also noted that Zimalloys was holding onto an important resource which it was unable to convert to optimal use yet small scale miners were failing to acquire high grade ores to sustain and maximise their operations. It noted that the future of chrome mining remained uncertain and it is estimated that 282 000 tonnes will be produced this year which is below half of the sector’s capacity.
“The Committee observed that there are several challenges affecting production of chrome which include lack of investment to for re-capitalisation, use of obsolete equipment leading to high production costs as well as high tariff and shortages of electricity,” the report read.
