Hope for small-scale miners

05 Jul, 2015 - 00:07 0 Views
Hope for small-scale miners Some small-scale chrome miners have abandoned their mines after continuous losses due to low prices

The Sunday Mail

Some small-scale chrome miners have abandoned their mines after continuous losses due to low prices

Some small-scale chrome miners have abandoned their mines after continuous losses due to low prices

The Government’s decision to temporarily lift the chrome ore export ban has given fresh hope to small-scale miners in the sector as their businesses were crumbling due to low demand created by the embargo.

Zimbabwe effected a ban on raw chrome exports about four years back inorder to promote value addition of the mineral but reversed the decision a couple of weeks ago after most companies in the sector failed to put in place the required processing technology.

Small-scale chrome miners have welcomed the decision saying their businesses would have totally collapsed had the embargo stayed any longer.

They say the ban reduced their selling prices as there was low local demand after raw exports were halted.

The small-scale chrome miners also revealed that the demise of big smelting companies such as Zimasco affected their operations since the ferrochrome producer was one of their most lucrative buyers.

As major players faced problems of their own, unscrupulous buyers moved in and took advantage of the situation, decreasing their offers to an unsustainable level.

Investigations show that most buyers are currently offering figures as low as $20 for a tonne of chrome instead of a competitive price of between $60 and $70.

However, the small-scale miners have expressed hope that things will get better following the suspension of the ban.

The miners are also hoping to sell some of their stockpiled ore to the recently commissioned Africa Chrome Fields’ chrome processing plant in Chirumhanzu.

A small-scale miner with claims in Lalapanzi and Chirumhanzu, Mr Agrippa Masocha, expressed joy at the lifting of the ban but said there was need for proper regulation in the chrome sector as buyers are taking advantage of them.

He said it was sad that no-one was looking out for their interests even though they have the potential to contribute to the betterment of the economy.

“We are very happy that the ban has been lifted and we are confident that the suspension will go a long way in improving our businesses,” he said.

“We have been mining but we were getting next to nothing because buyers are taking advantage of the low demand. They are paying between $20 and $30 for a tonne of chrome when they should be paying between $60 and $70 per tonne.

“As a result, most people have abandoned their mines as the business is no longer profitable and the playing field has become uneven.

Some small-scale chrome miners have abandoned their mines after continuous losses due to low prices

Some small-scale chrome miners have abandoned their mines after continuous losses due to low prices

“What we want now is for Government to provide proper regulation in the sector because at the moment buyers are taking us for granted.”

Mr Masocha also said most small-scale miners had abandoned their claims as they were no longer making profit.

A survey at the chrome fields in Lalapanzi, Chirumhanzu and some parts of Shurugwi confirmed Mr Masocha’s revelations as indeed, most mines have been abandoned.

Midlands Small-Scale Chrome Miners Association former president, Mr Peter Kanyenze, echoed Mr Masocha’s remarks saying there ought to be proper regularisation of the small scale chrome mining industry to help it grow.

“Yes there are many disgruntlements in the sector because buyers are not offering the right prices, so we hope that the lifting of the ban will help boost business,” he said.

Mines and Mining Development Minister, Cde Walter Chidhakwa, recently acknowledged the effects of the export ban on small-scale miners saying they are more severe on them.

“The ban on the export of chrome ore negatively affected all small-scale chrome ore producers, who lost

their economic ventures and livelihoods.

“In addition, the ban on the export of chrome ore did not create opportunities for smelters to invest in new technology for expanded value addition and beneficiation,” he said.

“The optimum production, smelting and export of chrome ore would result in major producers such as Zimasco being able to generate income for expanding their smelting capacity.

“The economic livelihoods of small scale producers would also be restored, and revenue to Government would be boosted through royalty fees payments, and other taxes such as corporate tax and PAYE.”

Morgan Moyo, the Zimbabwe Miners Federation vice president, also told media that the lifting of the ban would help revive the chrome industry which is teetering on the blink of collapse.

“Now that the ban has been lifted there is going to be competition on the market. As a result, this will go a long way in assisting small-scale producers to dispose of the 50 000 tonnes of raw chrome which had accumulated as a result of the ban,” he said.

Miti Mangemba, a director with chrome mining company, Mhlanga and Sons, whose operations are in Lalapanzi, Shurugwi and Zvishavane, said the lifting of the ban will allow them greater participation in producing as well as establishing smelting facilities from funds obtained through export sales.

“Government has facilitated a win-win situation in terms of competitive pricing of chrome ore and their timely intervention should be lauded,” he said.

Zimbabwe has the second largest reserves of chrome deposits after South Africa.

President Mugabe has emphasised the importance of value addition and beneficiation to maximise benefits from minerals.

The country has also been facing huge external demand for chrome ore thereby resulting in pressure on Government to lift the ban.

Observers, however, believe the lifting of the export ban may take time to have effects on small-scale miners as Zimbabwe had stockpiled 77 000 tonnes of chrome ore since the ban.

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