ZimAlloys resumes chrome smelting

ZimAlloys, a ferrochrome producer based in Gweru, has restarted its chrome smelting operations after an 11-year break, thanks to a US$7 million investment from Kuvimba Mining House. The company's revival marks a significant step forward for Zimbabwe's economy and demonstrates the country's resilience in the face of illegal economic sanctions imposed by the West.

Minister of State for Midlands Provincial Affairs and Devolution, Owen Ncube, hailed the development during a tour of the ZimAlloys plant in Gweru on Tuesday. He emphasized the importance of this breakthrough for the nation's efforts to revitalize its productive sector using internal funding models.

"ZimAlloys is a flagship company in the Midlands Province and one of the largest producers of ferrochrome, a key ingredient in stainless steel production," said Ncube. "Despite the negative effects of sanctions and a depressed global ferrochrome market, the company has resumed operations, reflecting the Second Republic's commitment to industrializing the economy under the visionary leadership of President Mnangagwa."

The resumption of production at ZimAlloys is expected to contribute significantly to Zimbabwe's export revenues, as ferrochrome remains a vital commodity. Zimbabwe holds the world's second-largest reserves of chrome ore, and ZimAlloys' reopening strengthens the country's position in the global market.

Ncube praised ZimAlloys management for steering the company through difficult times, retaining around 300 employees while preparing for the restart of smelting operations. He also commended the New Dispensation for creating a favorable investment environment, which has been key to the company's revival.

"So far, US$7 million has been invested in smelting operations, chrome washing plants in Mutorashanga and Lalapanzi, and new mining equipment," Ncube said. "This investment will enhance production, with the current capacity reaching around 4,000 tonnes per annum."

Looking ahead, ZimAlloys plans to expand its operations significantly. By 2025, the company aims to invest in a 13.5MVA semi-closed furnace, which will increase production capacity to 24,000 tonnes per year. By 2026, an additional 31 MVA furnace is planned, raising production to 48,000 tonnes annually.

Ncube highlighted that these developments are aligned with the Second Republic's broader economic goals, including the pursuit of an upper-middle-income society by 2030. "These efforts reflect the Government's focus on creating employment and improving livelihoods through the exploitation of natural resources," he said.

The Minister also pointed out that the Midlands Province has been a major beneficiary of these economic policies, posting the highest GDP growth in 2022, with mining leading the way.

"The mining sector's contribution stood at 27.3 percent, driven by minerals such as gold, platinum, chrome, and diamonds. The discovery of lithium and coal bed methane further underscores the province's mining potential," he added.

Ncube commended ZimAlloys for its corporate social responsibility, including on-the-job training programs and community empowerment initiatives for women and youth in Lalapanzi. He also urged all mining companies to prioritize environmental protection to ensure the sustainability of the sector.

"Today's tour of ZimAlloys highlights the tangible progress made by the Second Republic in achieving its development goals. Zimbabwe is open for business, and Vision 2030 is indeed realistic and achievable," concluded Ncube.

ZimAlloys' return to production is a testament to the resilience of Zimbabwe's industrial sector and its determination to overcome external pressures, driving forward toward economic growth and prosperity.