BUSINESS REPORTER
Zimasco Private Limited, a producer of ferrochrome, has shut down two furnaces as part of its efforts to reduce the rising production costs in the face of a downturn in the world market, Business Times can report.
Zimasco spokesperson, Clara Sadomba, confirmed the shut down of furnaces saying: “Zimasco confirms the recent curtailment of its operations by 25% as we have temporarily shut down two of our six running furnaces,” Sadomba told Business Times.
She added: “This is in response to the high cost of production of ferrochrome in the face of a global market downturn. The company, however, continues to engage with key enablers of our smelting process for more competitive pricing to support a more viable cost of production.”
According to Sadomba, one of the main problems was the high cost of electricity, which was impeding production.
“The major challenge is electricity costs. The macro-economic environment has also been challenging with significant exchange losses having been incurred for long periods, which also affected viability. We have seen some stability in this regard recently and we hope this continues,” Sadomba said.
At its Kwekwe plant, Zimasco is currently undergoing an expansion program that will be finished by the middle of 2024.
The company’s smelting capacity will increase from about 144 000 tonnes annually to over 300 000 tonnes as a result of the project, which started in 2022.
The ferrochrome expansion project entails the construction of two contemporary furnaces at the East Plant, as well as the construction of an ore agglomeration and sintering plant with a 300,000-ton-per-year capacity and the renovation of two furnaces at the West Plant.
The company has also witnessed mining operation projects being completed and put into operation over the past five years, with one of the most significant ones being the installation of four chrome concentrates plants in the Norths Dyke (Mutorashanga and Impinge area), which have produced nearly 1.5 million tonnes since 2017.
According to a recent statement made by the company, Zimasco has the capacity to produce about 180,000 tons of ferrochrome annually and intends to more than double that amount by 2024.
