Mining ZimbabweLatest Mining News, Policy and Industry Updates

Dinson Iron and Steel Company (Disco) has successfully commenced pig iron production from its blast furnace at the Manhize steel plant near Mvuma.

The development, which took place on Wednesday afternoon, marks a historic moment in Zimbabwe’s journey toward industrial revitalization and economic recovery.

The successful launch of pig iron production is a pivotal step for Zimbabwe, signalling the potential for substantial growth and development within the nation’s industrial landscape.

The Minister of Mines and Mining Development heralded this achievement, stating, “We are witnessing the dawn of a new era in Zimbabwe’s industrial landscape. DISCOSTEEL’s success is a clear indicator of what can be achieved through dedication, strategic planning, and investment in technology.”

Through its subsidiary Zim Alloys, Kuvimba Mining House (KMH) is reviving its chrome concentrator and washplants across Zimbabwe to boost the country’s chrome production.

KMH Group CEO Trevor Barnard highlighted the group’s strategic move to capitalise on the current chrome boom.

According to Barnard, with Zim Alloys’ strategic resuscitation efforts, Zimbabwe is poised to strengthen its position in the global chrome market, ensuring greater economic benefits and a more robust chrome industry.

“We’re busy resuscitating more of the chrome concentrator plants and washplants we have around Zimbabwe. This is definitely part of our strategy. As we progress, we’ll announce the resuscitation of each plant. This is our current strategy moving forward,” Barnard said.

Zim Alloys, holding the largest chrome reserve and being the biggest producer of chrome concentrate in Zimbabwe, is set to enhance the country’s production capabilities significantly.

Globally, only six countries have the capacity to produce more than one million tonnes of chrome ore annually namely South Africa, Turkey, Kazakhstan, India, Finland, and Zimbabwe. In 2022, these countries produced 18 million tonnes, 6.9 million tonnes, 6.5 million tonnes, 4.2 million tonnes, 2.2 million tonnes, and 1.5 million tonnes respectively.

South Africa dominates the market with 72% of the world’s commercially accessible chrome reserves and produces almost half of the global output annually. Zimbabwe, despite having 12% of the world’s chrome ore reserves, currently contributes less than 4% of the global output due to sector challenges.

Countries with fewer reserves, such as Turkey, Kazakhstan, India, and Finland, are outpacing Zimbabwe’s production. Turkey, for instance, produces more despite having smaller reserves.

Zimbabwe faces several issues in the chrome value chain. Local miners, particularly small-scale miners, sell their high-grade chrome for much less compared to South African miners. In January 2023, South African chrome ore was priced at around US$281 per tonne, while Zimbabwean miners received just US$70 per tonne. This disparity persists despite Zimbabwean chrome being comparable to higher-priced Turkish chrome, which sold for around US$350-US$360 per tonne in the same period.

Over 90% of the world’s chrome output is used to make ferrochrome, an alloy of chrome and iron ore, produced through high-temperature smelting. Ferrochrome, containing 50%-70% chrome by weight, is a crucial component in manufacturing stainless steel.

The Government of Zimbabwe has underscored the critical need for self-sufficiency in power generation within the mining sector, particularly as the industry experiences substantial growth driven by the rapidly increasing lithium mines.

Energy and Power Development Minister Edgar Moyo emphasized the significant surge in power demand and highlighted the necessity for collaboration between the government and the private sector to meet the increased demand.

“We recognize that the mining sector is growing, particularly with the coming of the lithium mines. The demand for power has surged phenomenally,” said Minister Moyo. “And, as the government, we cannot adequately provide power alone, we need to do it with the private sector,” Moyo told the chronicle.

To address this challenge, the government has approved a policy mandating that miners, especially those in the ferrochrome sector who benefit from substantial subsidies, develop their own renewable energy generation plants.

“We have approved a policy that these miners, particularly the ferrochrome miners who are heavily subsidized, should develop their own generation plants from the renewable side,” Moyo said.

The policy sets a clear timeline for implementation.

“We gave ferrochrome miners two years to set up their own generation plants. The time frame begins this year, and we expect that by 2026 they should have set up their own generation plants,” Minister Moyo added.

This move is part of a broader government strategy to boost the country’s power output. In recent years, significant attention has been given to expanding electricity production, most notably with the commissioning of Hwange Units 7 and 8 last year. These units have added a robust 600MW to the national grid, solidifying Hwange Thermal as the country’s major electricity supplier.

The proactive approach in mandating self-sufficiency in power generation for the mining sector is expected to alleviate the pressure on the national grid while promoting sustainable energy solutions.