Sable Chemicals needs US$12m to meet target

THE country’s sole Ammonium Nitrate (AN) manufacturer, Sable Chemicals, requires US$12 million for it to import raw materials to ensure enough stocks in preparation for the 2019/20 farming season, an official has said.

In his presentation, soon after a tour of the company plant by the Parliamentary Portfolio Committee on Industry and Commerce recently, Sable Chemicals chief executive Mr Bothwell Nyajeka said the company was facing production challenges due to lack of foreign currency.

“We are currently producing AN from ammonia gas imported from South Africa. But the challenge is that we have not been having access to the foreign currency that we require for production and we call upon Government to intervene so that we get the required foreign currency to meet our production target,” Mr Nyajeka told the parliamentarians.

From the required US$15 million, Mr Nyajeka said the company has only managed to access about US$2,5 million, which he said was insufficient for it to be productive.

He said due to the acute shortage of foreign currency, the company has only managed to produce only 7 000 tonnes of AN between January and June this year, against an annual target of 90 000 tonnes.

Mr Njajeka said the company has not produced since the beginning of this month.

“We intend to resume production in August, but that is only if get about US$12 million for us to be able to import raw materials.

“To produce the required 40 000 tonnes of AN from August to February 2020, we require at least US$2 million per month,” he said.

Mr Nyajeka said the country requires about 180 000 tonnes of AN per year, but the demand can be higher depending on the year.

Chairperson of the committee Cde Joshua Sacco said the purpose of their visit was to familiarise with challenges faced by companies in the country.

“Sable Chemicals is a critical company for the nation and we will lobby the Government to prioritise companies like this one when disbursing foreign currency,” he said.