Source: Pricing boost for small-scale chrome miners – herald
Oliver Kazunga
Senior Reporter
GOVERNMENT is preparing a major intervention in the chrome sector to protect small-scale miners from what industry players describe as predatory pricing by foreign-owned smelters and boost local beneficiation.
This comes amid growing concerns by the Chrome Miners Association of Zimbabwe that small-scale players in the sub-sector are being squeezed by foreign-owned smelting facilities.
Authorities say the measures are designed to improve viability among local chrome producers, while strengthening Zimbabwe’s broader industrialisation drive anchored on beneficiation and export growth.
In an interview, Mines and Mining Development Minister Dr Polite Kambamura said the Government was rolling out targeted interventions to support small-scale chrome miners through financing mechanisms and toll-processing arrangements under State-linked facilities.
“There is a fund already under MMCZ (Minerals Marketing Corporation of Zimbabwe) to capacitate small-scale miners in the chrome sector. “So, very soon I will be coming up with policy interventions in the chrome sector to address a number of issues, including toll processing through Government facilities,” said Dr Kambamura.
The proposed toll-processing model is expected to allow miners to process chrome ore at a fee instead of selling ore cheaply to foreign-owned smelting plants, a development industry players say could improve earnings and bargaining power for local producers.
Chrome Miners Association of Zimbabwe chairman Mr Shelton Lucas said while Government’s beneficiation thrust was progressive and necessary for long-term industrial growth, small-scale miners had been left vulnerable to foreign-owned processing facilities.
“The Government has banned the exportation of raw and unprocessed minerals and this has actually put small-scale miners in a dilemma because they have limited options about the pool of customers,” he said.
Mr Lucas said the existing beneficiation plants, largely owned by foreign entities, had exposed local miners to unfair pricing structures.
“We are subjected to predatory price regimes within Zimbabwe. For instance, foreign-owned beneficiation plants buy chrome ore at around US$70 per tonne. If our sovereign wealth fund, through Mutapa-owned resources such as ZimAlloys, can intervene with toll-processing plants for beneficiation for our chrome miners, it would be a game-changer,” he said.
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