Zimasco Signs U.S.$12 Million Lease Agreement
Posted on : Saturday , 19th December 2015
At full throttle, Portnex International is expected to process 240 000 tonnes of raw chrome per annum which translates to 100 000 tonnes of ferrochrome over the same period. The country's biggest ferrochrome smelter and miner, Zimbabwe Mining and Smelting Company (Zimasco) has signed a $12 million lease agreement with South African based firm, Portnex International to operate its furnaces.
The five-year lease agreement has breathed life into the ferrochrome smelter as it is expected to resuscitate three of the five furnaces at the company's Kwekwe Division.
This will see Zimasco recalling 800 workers back to work. Mines and Mining Development Minister, Walter Chidakwa, his deputy Fred Moyo and the permanent secretary Professor Francis Gudyanga witnessed the consummation of the transaction yesterday at Zimasco Plant in Kwekwe.
Zimasco recently retrenched 553 employees at its Kwekwe Plant as the plummeting metal prices on the international market continue to take its toll on the local mining sector.
The company's general manager technical and development, Reginald Matshiya applauded the Mines Ministry who facilitated the deal and said the partnership will go a long way in turning around the fortunes of the ailing company.
"Last year in October chrome prices got to a level where we could not continue operating five furnaces and we shut down our west plant furnaces.
"After shutting down the furnaces last year, we were fortunate that the ministry (of Mines and Mining Development) introduced us to an investor who we have now partnered to run the west plant furnaces," said Mr Matshiya.
Portnex International managing director, Frikkie Laubscher said the company is expected to commence operations in January next year while the first ferrochrome furnace is expected to be commissioned in the first week of February.
"We are happy to have entered into this partnership with Zimasco where we are going to resuscitate some of the mining operations as well as upgrading some of the furnaces at the West Plant.
"Once we have enough stocks, we will go ahead and commission the first furnace in February and as the production at the mines increase we will commission the other two furnaces to absorb the amount of chrome coming," he said.
At full throttle, Portnex International is expected to process 240 000 tonnes of raw chrome per annum which translates to 100 000 tonnes of ferrochrome over the same period.
The company exports ferrochrome to various European markets.
Portnex International is a global reductant-supplier to numerous consumers of a broad spectrum of carbon products and its operations have expanded to include the marketing of strategic commodities such as chrome ore, ferro chrome, thermal coal, lean coal, anthracite, coking coal and metallurgical coke.
The company has presence in South Africa, Turkey and Zimbabwe where it recently offered consultancy services to Hwange Colliery.
Meanwhile, Minister Chidhakwa hailed the signing of the ferrochrome deal between Zimasco and Portnex saying the resuscitation of the abandoned mining companies is in line with recent Zanu PF resolutions made at the just ended conference in Victoria Falls.
"The consummation deal between Zimasco and Portnex is absolute confirmation of the Zanu PF resolutions made at the just ended conference in Victoria Falls where we said we are going to resuscitate all abandoned and shutdown mines in the country. This has seen the resuscitation of Kamativi Tin mine in Matabeleland North, Elvington gold Mine in Chegutu, and now Zimasco," said Minister Chidhakwa.
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