Call for scrap metal exports ban

Call for scrap metal exports ban
Published: 23 May 2018
SCRAP METAL exports have seriously curtailed industrial production of gold processing equipment and spare parts produced by local foundries, manufacturers in the sector have said.

Local foundries have urged Government to stop the exportation of their principal raw material - scrap metal - by local companies as it has adversely affected their operations.

Midlands Metals operations director, Mr Tatenda Karimazondo, acknowledged that the South African market is paying more for scrap metal but said cumulatively local manufacturing companies add more value to the economy.

"We (The Foundry Association of Zimbabwe) have handed a petition to the Ministry of Industry and Commerce to stop the exportation of scrap metal which is our major raw material in our sector. We have serious challenges in getting these raw materials so that we can continue producing what the miners want to increase their production. We feel hard done when companies are allowed to export raw materials," he said.

Mr Karimazondo said while it was a fact that in South Africa, for example, scrap metal fetched more than locally, Government should consider that local foundries add more value to the economy.

"We add more value to the economy, for instance we pay taxes, we employ more than 300 people, and we save the country foreign currency in the exportation of spare parts and gold processing equipment that is needed by miners. Right now we are not operating at maximum capacity because of lack of raw materials," he said.

"If we have enough scrap metal then some things that NRZ might need for their locomotives we have the capacity to manufacture them.

"So we are appealing to Government to put in place legislation that will protect our manufacturing sector as we give more value to the country than just a few dollars gained through the exports of scrap metal."

Local manufacturing companies have been hailed for assisting mechanisation of small scale mining, which has seen a jump in gold production by the small scale miners.
- chronicle
Tags: Scrap,


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