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Govt lifts ban on chrome ore exports

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GOVERNMENT has lifted the ban on the export of chrome ore of up to 30 million tonnes to enable the sector to mobilise financial resources and invest in technology, government said yesterday.

GOVERNMENT has lifted the ban on the export of chrome ore of up to 30 million tonnes to enable the sector to mobilise financial resources and invest in technology, government said yesterday.

BY TARISAI MANDIZHA

Chrome ore exports were banned in 2011 to promote value addition.

Mines and Mining Development minister Walter Chidakwa yesterday said the threshold of up to 30 million tonnes of chrome ore shall be subjected to review based on desired developments in the establishment of additional smelting capacity in the country.

“In order to enable chrome ore producers to mobilise financial resources for capitalisation to invest in modern technology in smelting as well as address the plight of small-scale chrome ore producers, government has with immediate effect lifted the ban on the export of chrome ore to allow for the export of up to 30 million tonnes of chrome ore lumpy, fines and concentrates over and above the export of processed ferrochrome,” Chidakwa said.

“The ban on the export of chrome ore negatively affected all small-scale chrome ore producers, who lost their economic ventures and livelihoods. In addition, the ban on the export of chrome ore did not create opportunities for smelters to invest in new technology for expanded value addition and beneficiation.”

Chidakwa said government had also reviewed the current royalty fees for chrome ore from 2% to 5% whilst the export tax of 20% had been removed to allow chrome ore producers to generate income to increase smelting capacity.

He said in order to assist chrome ore producers to operate viably and to allow them to create investment capacity in smelting, government had decided to reduce electricity tariffs to 6,7 cents per kilowatt hour for chrome from 8,0 cents with immediate effect.

Chidakwa said the available chrome ore production capacity was estimated at 1,5 million metric tonnes per year , limited smelting capacity at 455 200 metric tonnes per year, available rail transportation capacity at National Railways of Zimbabwe (NRZ) to port was estimated at over one million metric tonnes per year and available road transportation capacity at NRZ and others .

He, however, said the 12 chrome ore producers already in ferrochrome smelting and a Special Purpose Vehicle established by government would be registered with the Mines and Mining Development ministry to export excess chrome ore.