.png)
From Resource Control to Industrial Value Addition
Zimbabwe has introduced a pivotal policy linking the issuance of chrome mining titles exceeding 100 hectares directly to the expansion or establishment of ferrochrome furnace capacity. Alongside intensifying enforcement of the “use it or lose it” principle, these measures form part of a strategic effort to boost local beneficiation in the chrome sector.
By Ryan Chigoche
Announced yesterday by Mines and Mining Development Minister Winston Chitando, the government’s move targets two key challenges: curbing speculative mining title holding and accelerating the growth of local ferrochrome production.
This approach aligns with Zimbabwe’s broader plan to add value locally to its vast chrome ore reserves, creating jobs, increasing economic benefits, and strengthening industrial capacity.
To appreciate the significance of this new policy, it helps to understand Zimbabwe’s role in the global chrome ore market.
South Africa holds the largest reserves worldwide—about 72%, primarily concentrated in UG2 ore bodies, where chrome ore is often produced as a by-product of platinum mining.
Zimbabwe follows as the second-largest holder with approximately 12%, and together, the two countries control roughly 84% of the world’s chromium reserves. Other producers such as Kazakhstan, Turkey, and India hold smaller reserves.
Most of the world’s chrome ore is processed into ferrochrome, a vital component in stainless steel production. Although chrome ore has other uses, ferrochrome remains the largest derivative product. Despite its significant reserves, Zimbabwe is notably absent from the list of top global producers of chrome ore—a reflection of deliberate government policy.
To encourage value addition, Zimbabwe has banned the export of raw chrome ore, focusing instead on exporting value-added ferrochrome. However, the country has yet to break into the top five ferrochrome producers—a gap the government is determined to close.
Minister Chitando explained that while the raw chrome export ban was intended to encourage local beneficiation, the country’s full potential remains untapped.
“Some investors have secured large chrome concessions without developing corresponding furnace capacity, limiting Zimbabwe’s ability to maximise the economic benefits of its mineral wealth,” he noted.
To address this, the government is stepping up enforcement of the “use-it-or-lose-it” principle. Mining titles that are not effectively utilised, particularly those lacking associated furnace capacity, face forfeiture. Recognising the significant investment required to build furnace capacity, the government considers the need for a stable resource supply to sustain such operations for about 25 years an important factor in applying this policy.
“To explain clearly: when you look at most minerals, including chrome operations, you have mining and you also have processing capacity, which are the furnaces. Generally, as a rule of thumb, when furnaces are established, you want to ensure that you have sufficient resources for about 25 years to sustain the feed during that period and recover the investment in the processing capacity, which is expensive,” Minister Chitando said as he addressed the media today.
“So when we talk of use-it-or-lose-it, yes, the government is sensitive to producers or investors who invest in ferrochrome capacity, but they want to be assured of feed to supply that processing capacity. That’s factored in when considering the use-it-or-lose-it principle. This will be intensified. Secondly, with immediate effect, all chrome titles above 100 hectares will only be issued where they are directly going to expand current furnace capacity or feed into current or new furnace capacity.”
The government’s insistence that large chrome mining titles be tied to smelting capacity is intended to prevent resource hoarding without industrial development. Minister Chitando stressed that the policy is inclusive of smaller-scale operations as well.
“We would like investors to come, get resources, and establish furnaces. You get very small furnaces, too. If you look at the profile of Zimbabwe’s ferrochrome producers, you have large producers like Afrochine doing about 180,000 tons, and producers ranging as low as 3,000 tons. So you can have fairly small furnaces. The whole idea is to say, come investors, apply for title, and at the same time set up furnaces so that we unlock the potential in the ferrochrome industry.”
Together, the 100-hectare smelting capacity requirement and the strengthened “use-it-or-lose-it” enforcement are twin pillars of Zimbabwe’s effort to transform its mining sector. By tying mining rights to real production and value addition, these measures aim to attract investors willing to commit to local beneficiation, securing long-term economic benefits, job creation, and industrial diversification.
This policy framework supports Zimbabwe’s broader ambition to become an upper-middle-income economy by moving beyond simple mineral extraction to industrial manufacturing. Minister Chitando emphasised that the government’s decisions send a clear message: mining rights must translate into real production and value addition. With immediate enforcement, the government expects a surge in investor interest in smelting capacity and a more vibrant ferrochrome sector.
Ultimately, Zimbabwe’s refined approach positions the country to better leverage its abundant chrome ore reserves, enhance its ferrochrome output, and strengthen its standing in the global minerals market.
