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[Ferro-Alloys.com]LOWER power tariffs are key to sustainable growth in the base metal industry particularly the chrome sector, Chamber of Mines vice-president, Batirai Manhando has said.
BY FIDELITY MHLANGA
Speaking at the Chamber of Mines conference in Victoria Falls last Friday, Manhando said power tariffs and subdued global prices were militating against growth.
“The chrome sector is energy intensive, lower tariffs are required to restore viability and contribute to the generation of the much needed foreign currency. Reliability and competitive pricing of electricity are fundamental to attracting the future growth of the base metal mining industry and the economy at large. Pursue commodity price linked tariffs,” he said.
Manhando said developments in electricity generation, where a number of projects initiated by the government and independent power producers, were encouraging.
The country’s electricity supplier, Zesa Holdings is proposing a 14% tariff increase from the current 9,86 cents to 11,2 cents per kilowatt per hour (KWh).
Chrome mining was on the verge of collapse until the government lifted a ban on chrome ore exports in June last year, resulting in 28 840 tonnes of the ore, valued at $2 million being exported.
Manhando said nickel has a huge potential to grow to 27 000 tonnes by 2020, and increase annual export earnings to $700 million, with employment figures almost doubling to 1 800.
He said in order to bridge the gaps and grow the base mineral sector, the country must attract investment in minerals exploration of about $120 million annually.
Manhando said there must be an active mineral exploration sector responsible for processing applications in less than two months.
He urged the government to reduce the risk of doing business in Zimbabwe to address the fiscal regime, adding that there must be closer co-operation between mineral producers and technology providers aimed at improving productivity levels.
Nickel, chromium, cobalt, iron, tantalum have contributed to the development of the mining industry over the years.
Since the resumption of production by Bindura Nickel Company, nickel has recorded phenomenal growth from 7 900 tonnes in 2012 to 16 000 tonnes in 2015.
Average capacity utilisation in the nickel sector decreased from 83% in 2014, to 61% in 2015.
In the past five years, nickel has generated approximately $800 million in export revenue.
Nickel output is envisioned to grow to 17 680 in 2016, 19 300 in 2017 and escalate to 27 660 by 2020.
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- [Editor:Sophie]
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