Chrome sector bullish

Chrome sector bullish
Published: 24 May 2018
THE Zimbabwe chrome sector performed above expectations during the first quarter of 2018, with concentrates raking in $54,2 million as at April 30 compared to $33,2 million in export revenue earned during the same period last year, official statistics show.

Latest statistics from the Minerals Marketing Corporation of Zimbabwe (MMCZ) also show that revenue accruing to chrome ore showed a jump from $3 million during the same period last year to $13,7 million this year.

Growth in revenue from chrome concentrates is attributed to increased value addition.

The statistics show that since a ban on chrome ore exports was lifted in 2011, the sector recorded exponential growth, coupled with a jump in production.

Chrome concentrates tonnage grew to 341 888 metric tonnes (mt) compared to last year's 154 726 mt.

Chrome ore production also grew during the period under review to 139 562 mt from 18 701 mt over the same period in 2017.

Speaking to The Financial Gazette, Zimbabwe Miners Federation spokesperson Dosman Mangisi said production was poised to surpass 500 000mt of chrome this year.

"Production is in line with our target. We are targeting 500 000 metric tonnes and this is achievable.

"We are witnessing a positive increase in both chrome ore and concentrates. Although we once experienced a decline in the sector, there is a positive trajectory," said Mangisi, who also applauded the MMCZ for assisting players in the base minerals sector in finding markets.

"We are positive about the outcomes. What MMCZ is doing with Apple Bridge, where small scale miners are being protected, is good. We hope other base minerals players also come on board," said Mangisi.

Last year, government directed State entity, Apple Bridge Investment, to buy all chrome supplied by small-scale chrome producers following complaints from the miners that they were being fleeced by private smelters who bought the mineral below the market price.

Most of the chrome exported this year was produced by small scale miners.
- fingaz
Tags: Chrome,


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