Tuesday, 23 Aug 2011
It is reported that Chinese controlled ferrochrome producer Zimasco is importing coking coal for its smeltering operations from Botswana where the commodity is generally cheaper and always available.
According to Mr Reason Mandimika mining executive of Zimasco, that importing coal was necessitated by bottlenecks in the local supply chain and at times the costing by local suppliers.
Zimasco expects to increase its annual ferrochrome production to 600 000 tonnes once it completes refurbishment and construction of a new furnace in Kwekwe. This follows the government's renewal of a ban on export of raw chrome ore in March this year.
Mr Mandimika said that "We have been importing coking coal for our furnaces from Botswana primarily because of two reasons; it's cheaper and always available.” He added that the coal from Sengwa was not up to the quality required for smelting chrome.
Hwange Colliery and Sengwa Coals are the two main suppliers on the local market but suffer operational hitches, among them recapitalisation and ageing equipment, particularly in the last decade where hyperinflation wreaked havoc on business.
(sourced AllAfrica)
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