ZimAlloys Revives Smelting, Targets 120,000 Tonnes Annual Ferrochrome Production
Kuvimba Mining House (KMH)-owned Zimbabwe Alloys (ZimAlloys) has reasserted itself as a leading alloy producer in Zimbabwe, with plans to become one of the largest high-carbon ferrochrome producers in the country, Mining Zimbabwe can report.
By Rudairo Mapuranga
ZimAlloys Managing Director Deric Dube confirmed that the company has commissioned its first smelter, the M1 smelter, which has the capacity to produce 10 tonnes of high-carbon ferrochrome per day.
He said the company is now focused on resuscitating additional smelters, including its largest, the A3 smelter, as part of a plan to ramp up production to 120,000 tonnes of high-carbon ferrochrome annually.
“Our plan is to eventually reach 120,000 tonnes of high-carbon ferrochrome production annually and then restart the smelting of other alloys further down the line. For now, we’re excited to be back in the smelting industry in Zimbabwe and to be a strong voice in that space. This means a lot to us, and to me personally, as I’ve had the privilege of being the Managing Director during the transition from no smelting to producing raw alloy, which you’ll see today. We’ve undergone two rounds of fundraising that have brought these projects to life. As you can imagine, raising capital is tough when you don’t have much money—no one wants to lend to you,” said Dube.
In addition to its smelting operations, ZimAlloys is also producing 8,000 metric tonnes of chrome concentrates per month, with plans to increase this figure by year-end.
“Our current operations produce about 8,000 metric tonnes of chrome concentrates on a monthly basis, and we are in the process of increasing that number. Over the last 12 months, we’ve opened or upgraded several facilities, either by building completely new plants or resuscitating old ones to leverage proven resources. We’ve restarted three chrome concentrator plants, nearly doubling our production compared to this time last year,” Dube explained.
ZimAlloys was once a dominant player in Zimbabwe’s ferrochrome industry but faced significant challenges in the early 2010s. After the company ceased smelting operations in 2013, it entered judicial management for nearly eight years due to financial difficulties and an inability to meet obligations to local and foreign creditors.
In 2019, Kuvimba Mining House took over ZimAlloys, which had been struggling under a heavy debt burden. Kuvimba invested substantial resources to clear the company’s debts and reposition them for growth, allowing ZimAlloys to start afresh and be free from the financial liabilities that had previously hampered its operations.
Under Kuvimba’s leadership, ZimAlloys has made a strategic comeback by focusing on reviving its core smelting operations and expanding its resource base. The company has embarked on significant capital investment, leading to the commissioning of new smelters and the reopening of old ones. The parent company, Kuvimba, holds 85% of ZimAlloys’ shares, while the remaining 15% is held by Co-Metal, a foreign entity responsible for marketing ZimAlloys’ products in international markets.
ZimAlloys has also diversified its portfolio, producing a range of ferroalloys, including high-carbon and low-carbon ferrochrome, ferrosilicon chrome, and ferromanganese. This diversification has allowed the company to mitigate risks in volatile markets by ensuring it is not reliant on a single product. The company is also focused on proving up its resource base to strengthen its balance sheet and ensure long-term sustainability.
With the support of Kuvimba Mining House and favourable market conditions, ZimAlloys is well on its way to reclaiming its position as one of Zimbabwe’s key ferrochrome producers. The company is aiming for long-term growth and sustainability, with plans to introduce additional smelting technologies and expand its production capacity in the near future.
ZimAlloys’ return to smelting after an 11-year hiatus marks a significant milestone in the revival of Zimbabwe’s ferrochrome industry, with the company set to play a crucial role in the country’s mining sector moving forward.