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| Zimasco / Zimbabwe Has Resumed FeCr Production From End Last Week |
| = Financial Assistance Has Been Afforded From China As Its Partner |
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Zimasco, a producer of ferro-chrome in Zimbabwe, has resumed from the end of last week to produce ferro-chrome at the Kwe Kwe plant. Two electric furnaces (out of six electric furnaces) have resumed to operate. According to the direct instructions from Mugabe President, the measures to resume its operation were investigated and Sinosteel of China, which is a major shareholder of Zimasco having acquired 60% of the shares in this producer, has afforded an additional financial assistance of US$7 million to Zimasco for the purpose of resuming its operation. Because of a sharp fall of price for ferro-chrome, the Kwe Kwe plant of Zimasco suspended to operate from December of 2008. However, Mugabe President, who has attached an importance to the influence on Zimbabwean economy and the contribution of having gained hard currency by means of exporting ferro-chrome from Zimbabwe, visited directly the Kwe Kwe plant in March and instructed to resume its operation. Therefore, the measures for resumption were investigated and targeted to materialize this reopening in April. The Kwe Kwe plant has the capacity to produce 200,000 tons per annum of ferro-chrome on full operation base and also has possessed two chrome mines. From a view point of employment, it was judged to be not negligible to have been influenced by the shutdown of this plant. There is an opinion in the market that, in line with the measures for economic supports to be provided to South Africa, to where the Central Government of China has attached an importance, this arrangement for Zimasco has been materialized by Chinese side. Sinosteel is an enterprise based on the Ministry of Metallurgical Industry of China and also is one of major producers of ferro-alloys in China. Since the Kwe Kwe plant has resumed to operate, " the program to rebuild energy economy " as aimed by the Government of Zimbabwe has achieved an initial target but many and accumulated problems have been still left in order to maintain this operation at Zimasco for a long period. The reason is that price of ferro-chrome in the world has deteriorated further from that at the end of 2008. |
| last modified : Mon 20 Apr, 2009 [11:09] |
