Minister lauds Zimasco, ZimAlloys revival

THE reopening of Gweru-based ferrochrome producer Zim Alloys and the performance of Kwekwe-based chrome smelting company Zimbabwe Mining and Smelting Company (zimasco) in the past few months has rekindled hopes for the chrome mining sector and Midlands province.

zimasco realised a turnover of more than $158 million and a profit of $45 million in the past 16 months that it has been under judicial management while ZimAlloys concluded its $100 million deal with an unnamed Indian Investor last week.

Midlands Provincial Affairs Minister Cde Jason Machaya said the developments at the two companies will contribute immensely to the development of the province.

“The positive developments at zimasco and ZimAlloys will benefit not only the Midlands province, but the country as a whole as this has created a lot of jobs that were lost when the companies closed,” he said.

Minister Machaya said the revival of ZimAlloys will contribute significantly towards employment creation and meeting the $3 billion mineral export target.

The two companies employ more than 3 000 people when operating at full throttle.

zimasco judicial manager Mr Reggie Saruchera of Grant Thornton International said zimasco was now operating at full capacity.

“The company is now operating at full throttle. We have invited our creditors to a scheme meeting this month to see how best we can stagger the payment over a period of four to five years,” said Mr Saruchera.

Mr Saruchera, who is also judicial manager for ZimAlloys, confirmed the conclusion of the company’s deal with an Indian investor whose identity he refused to reveal.

“The deal has been sealed, but we will soon announce the investor. The investor is injecting more than $100 million into the Gweru-based company. We have since invited creditors and stakeholders to a scheme of arrangement meeting. The new investor will take over operations,” he said.