Published: 27 November 2013

Mining and industrial chemicals manufacturing firm Zimbabwe Phosphate Industries is seeking to raise at least $15 million for the refurbishment of its Msasa plant in Harare in order to increase capacity utilisation by about 40 percent next year, a company official has said.

In an interview with Herald Business yesterday, general manager Mr Tapuwa Mashingaidze said once raised, the funds would be channelled towards improving raw material reserves.

"Last year we embarked on a project to refurbish our plants but due to financial constraints we have not done much to date.

"We have been forced to wait a little longer in order to court potential partners who can assist us to raise at least $15 million to see the project through and I am happy to say that we are currently engaging potential partners whom I cannot disclose at the moment," he said.

Mr Mashingaidze also said they hope to complete the Msasa refurbishment project before the end of next year if funding is mobilised on time while they will also spread the same project to their Dorowa Mine operations. The company has phosphate mining and processing operations in that area.

After completion of the refurbishment exercise, Zimphos' capacity utilisation currently at about 20 percent is expected to increase to at least 60 percent.

Mr Mashingaidze, however, said despite the liquidity challenges prevailing in the country dating back to the hyperinflationary era, they have noted some improvement in the market during this time of the year because of the seasonal upsurge in fertiliser demand.

"At this time of the year demand of some of our products increases especially in the fertiliser business, but it has to be noted that some of the challenges we have are legacy problems that we inherited during hyperinflation.

"The adoption of the multi-currency regime coupled with price controls at the time crippled our operations as we could not recover some of our dues from our debtors after the local currency lost value," he added.

Zimphos is 100 percent owned by Chemplex Corporation Limited which is a key player in the national fertiliser industry and has a shareholding in the Zimbabwe Fertiliser Company and Sable Chemical Industries.

Zimphos' main line of products include phosphatic fertilisers that are used in the production of compound fertiliser, aluminium sulphate used in the purification of water and sulphuric acid and packed anhydrous ammonia.

The company also manufactures super phosphates and phosphoric acid from phosphate rock and sulphuric acid with the phosphate rock coming from Dorowa mine.
- herald