Government has set up a special purpose vehicle (SPV) which small-scale miners can use to export chrome ore or concentrate as it moves to accelerate the exportation of the mineral three months after the removal of an export embargo.
BY TARISAI MANDIZHA
In addition, every raw chrome exporter shall pay a royalty of 5% and a prescribed permit fee of $500 as part of regularising the export of chrome ore, Mines and Mining Development permanent secretary Francis Gudyanga said yesterday.
Chrome ore exports were banned in 2011 to promote value addition.
Gudyanga yesterday told journalists that for the purpose of regularising the export of chrome ore, smelters and small-scale miners shall be expected to adhere to registration of chrome smelters to export excess chrome ore. He said small-scale miners may export their chrome ore or concentrate through a special purpose vehicle, Apple Bridge Investments.
“The producers will inform Apple Bridge of the availability of chrome ore in lumpy or concentrate form together with the analyses. Apple Bridge will verify the availability of the material by use of the inspectorate and monitoring units.
“An assignment laboratory will sample and analyse the consignment on behalf of the producer. The cost of analysis will be borne by the producer,” he said.
Gudyanga said Apple Bridge will purchase chrome ore at competitive prices and that the SPV and the producer will enter into a sale regulating the transactions.
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“The SPV will make payment of the consignment before export. MMCZ [Minerals Marketing Corporation of Zimbabwe] and Apple Bridge will process all requisite export documents for the consignment. All export cargo will be verified through a certificate weighing facility before export,” Gudyanga said.
He added that no small-scale producers will be allowed to sell chrome ore outside the SPV except those with tribute agreements. Gudyanga said chrome smelters who wish to export excess chrome ore shall apply in writing to the secretary for Mines and Mining Development and fill in a registration form to export excess chrome ore.
“Every smelting company shall provide the following: copies of company registration documents, design or installed smelting capacity, tonnage of chrome ore stating categories lumpy, concentrate, finds required for the smelter to operate at full capacity, throughput and ferrochrome produced per month, three months prior to application, average annual ferrochrome production for the previous two years before the date of application,” Gudyanga said.
“A proposed work plan detailing the following: clearly stating the timelines, smelting technology, to be invested in, how much revenue attained from chrome ore exports will be channelled to investment in modern smelting technology, how the company intends to increase smelting capacity and enhance plant efficiency and the secretary will make recommendations to the minister who will approve the issuance of authority to export the excess chrome ore.”
In June, government 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 also removed the export tax of 20% to allow chrome ore producers to generate income to increase smelting capacity.
Electricity tariffs were reduced for the chrome sector to 6,7 cents per kilowatt hour from 8 cents. Despite the incentives, there were no chrome exports as producers did not have the licences to do so.
