IDC to recapitalise Chemplex subsidiaries

Published: 16 January 2014

THE Industrial Development Corporation will seek Government approval to borrow $10 million to $15 million to recapitalise Chemplex Corporation's subsidiaries, Dorowa Minerals and ZimPhos.

IDC, wholly owned by the Government of Zimbabwe, holds the entire shareholding in Chemplex Corporation, the country's biggest fertiliser and chemical manufacturing company.

Appearing before a parliamentary portfolio committee on industry and commerce yesterday acting secretary for Industry and Commerce Mr Stanislaus Mangoma said the funds were required to recapitalise the two firms as some of their equipment were now antiquated.

If the request is granted, IDC would approach the Industrial Development Corporation of South Africa for the much needed recapitalisation funds. IDC Zimbabwe needs $100 million to recapitalise all its units.

"We would want to borrow $15 million for the resuscitation of Dorowa (Minerals) and ZimPhos. We need to upgrade the (ZimPhos), plant he said. Some equipment at Dorowa also needs replacement.

Dorowa Minerals is the only phosphate mine in Zimbabwe and mining at Dorowa is done by open cast method, which involves ripping, and dozing in soft rock and drilling and blasting in the hard rock.

The beneficiation plant consists of milling and flotation processes to produce phosphate concentrates which are converted into superphosphates at ZimPhos, a sister company of Dorowa. ZimPhos Industries has been in existence since 1928.

At Msasa its factory in Harare ZimPhos produces super phosphates, sulphuric acid, phosphoric acid, aluminium sulphate, silicate solutions, ammonia solutions and packed anhydrous ammonia.

The super phosphates and phosphoric acid are manufactured from phosphate rock and sulphuric acid with the phosphate rock coming from Dorowa Mine. ZimPhos produces the sulphuric acid in two separate plants with one using imported sulphur and another using local pyrites (iron sulphide) from Iron Duke Mine.

Some of the sulphuric acid is sold to the mining sector for minerals extraction as well as to other manufacturing sectors. The bulk of the acid is however used for super phosphates manufacture.

Super phosphates are used in the manufacture of granular NPK compound fertilisers. Gypsum is produced at ZimPhos as a byproduct of phosphoric acid manufacture and is used for agricultural purposes as well as for cement, plaster and ceiling board manufacture.

Aluminium sulphate is used extensively as a municipal water treatment chemical within Zimbabwe and regionally.
- herald