Metal Foundry Industry Welcomes Zimbabwe’s Ban on Chrome Ore Exports
The steel manufacturing sector has welcomed the Zimbabwean Government’s decision of banning the exportation of Chrome, in attempt to help local players secure ferrochrome at more competitive rates.
Following a Cabinet resolution that was made in August of last year, the banning of Chrome ore is already in effect, with the banning of Chrome ore concentrate to take effect in July 2022.
According to the Minister of Information, Publicity and Broadcasting Services, Monica Mutsvanga – the ban of Chrome ore exportation will capacitate current smelters and therefore maximise the value chain to be realised from Zimbabwe’s abundant resources.
Mr. Itai Zaba, the Institute of Zimbabwe Foundries (ZIF) president, has said that the Government’s bold stance was vital for the metal industry, due to the fact that it was struggling to secure inputs at affordable rates.
As said by Zaba:
“Zimbabwe foundries will be able to get all grades of ferrochrome at better rates opposed to current high import cost. This means that we will lower our cost of production and make our products cheaper on the market.”
The move to ban the exportation is also said to promote the beneficiation of Chrome ore, which will hopefully promote further industrial growth and create more jobs.
“Beneficiation will promote industrial growth via setting up of new plants, and this will bring about the much-needed employment and also brings about technology transfer to Zimbabwe”
Foundry Family & Downstream Suppliers to Benefit
The ZIF president also goes into detail about how the ban will not only benefit the foundry family, but also downstream suppliers.
“The value chain cannot be closed in at the foundry alone, it goes far to various suppliers in services, chemical, gas, fuel, construction, banking and Zimra who will find opportunity to do business in the foundry and chrome beneficiation sectors.”
Bringing Long Term Benefits to Zimbabwe
The chairperson of the Mines and Mining Development Parliamentary Portfolio Committee, Mr. Edmund Mkaratigwa, says the decision to ban Chrome ore export is a decision that was done at the interest of the people of Zimbabwe, and that it will bring long term benefits to the country.
“Market monitoring is important as returns are the main considerations in all business endeavors. And this ban was done after determining the cost and benefit analysis of available options to the country and its citizens. There were challenges around returns from the sales of these primary resources relative to its benefits to its implicated citizens. These are the matter we need to consider,” says Mkaratigwa.