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The issuance of new chrome mining titles exceeding 100 hectares will now, with immediate effect, be contingent upon the development or expansion of furnace capacity, Mines and Mining Development Minister Winston Chitando has announced.
By Ryan Chigoche
This directive forms part of Zimbabwe’s broader value addition strategy aimed at maximising economic benefits from its mineral resources, particularly through promoting local ferrochrome production. The government’s move seeks to bolster the ferrochrome industry in Zimbabwe, a critical sector for the production of stainless steel. The focus is on enhancing local processing capacities rather than relying on raw material exports to external markets.
During the recent Post-Cabinet briefing, Minister Chitando elaborated on this new directive, stating:
“On this broader value addition drive on chrome ores, the issuance of new titles of chrome ores above 100 hectares will only be allowed where it is associated with the development or expansion of furnace capacity. Previously, and traditionally, investors would come seeking chrome ore concessions, and they would be considered on their capacity to mine. But with immediate effect, concessions of chrome above 100 hectares will only be considered if they are directly linked with the development of ferrochrome production capacity — once again, as part of the value addition programme.”
Zimbabwe currently has about 10 ferrochrome producers, with capacities ranging from 3,000 to 84,000 tonnes per annum, culminating in an estimated total production capacity of approximately 270,000 tonnes per annum. This capacity underscores the country’s potential to strengthen its position in the ferrochrome market through local beneficiation.
Further emphasizing the government’s commitment to efficient resource utilisation, Chitando highlighted the enforcement of the “use it or lose it” policy within the chrome sector. This policy aims to boost production and curb speculative ownership of mining titles.
According to the provisions of the Mines and Minerals Act, mining titles should not be held for speculative purposes, with a clear emphasis that every holder of a mining title, claim, or special grant should produce on that mining title.
The law further provides for monthly returns, where a registered mine manager or representative of a mine location has to submit monthly returns reflecting production from the particular claim or mine title.
Chitando warned that failure to produce optimally, or non-production, would result in the forfeiture of mining titles under this principle.
“In an effort to ensure that Zimbabwe gets optimum value from its minerals and that minerals play their rightful place in the development of the country, the Ministry will be accelerating the implementation of the ‘use it or lose it’ principle where there is zero or suboptimal production.”
Zimbabwe’s mining sector has increasingly embraced value addition by processing raw minerals locally rather than exporting them unprocessed.
This strategic shift aims to enhance economic benefits, create jobs, and build local industrial capacity.
Chrome ore remains one of Zimbabwe’s key mineral resources and a major export commodity.
However, the global market value of raw chrome ore is significantly lower than that of ferrochrome, an alloy produced by smelting chrome ore and iron.
Ferrochrome is a vital material in stainless steel manufacturing and commands substantially higher prices internationally.
To support industrialisation and maximise economic returns, Zimbabwe has been promoting downstream processing through local ferrochrome production.
This approach is designed to transform the mining value chain from mere extraction to manufacturing, thereby ensuring greater domestic beneficiation.
Historically, some investors acquired large chrome mining concessions without investing in ferrochrome smelting capacity, limiting the country’s ability to fully benefit from its mineral wealth.
The government’s renewed emphasis on linking mining rights to ferrochrome production capacity addresses this challenge, encouraging greater investment in smelting infrastructure.
Ultimately, this policy shift aligns with Zimbabwe’s broader goal of fostering industrial development through value addition in mining. It aims to diversify the economy and increase the country’s share of the mineral value chain, positioning ferrochrome production as a cornerstone for sustainable growth.
