Zimasco, a unit of Sinosteel, is investing $35 million in a new ferrochrome smelter at its Kwekwe plant and aims to increase its existing capacity by 40% by the end of 2022, said Clara Sadomba, a spokeswoman for the company.

Zimasco and Afrochine mining, a unit of China's Qingshan Group, are Zimbabwe's main producers of ferrochrome, an important material in stainless steel production.

Zimasco, which currently owns large tracts of undeveloped land, will have a capacity of 72,000 tonnes a year at its new furnace and 252,000 tonnes of ferrochrome from the current 180,000 tonnes. The project will also include the construction of a sintering plant with an annual capacity of 300,000 tons.

The sintering plant will enable Zimasco to utilize its crushed ore, which Zimasco has not been able to utilize due to the outdated technology of the existing chromium smelter. The feasibility study of the project has been completed and design work is in progress. The improved furnace technology will improve operational efficiency and reduce production costs, thereby enhancing competitiveness.

It is understood that Zimasco has drawn up a five-year business plan which takes into account the additional ore demand from the new smelters as well as an adapted mining plan.

In August, the Zimbabwean government banned exports of raw chromium ore to encourage investment in the mineral's beneficiation and appreciation. Analysts said the move would allow more capital to flow into the sector.

The government also granted large tracts of land to companies interested in building integrated chromium mines and smelting plants.

Ms. Sadomba added that Zimasco has now begun discussions with the Zimbabwe Electricity Transmission and Distribution Corporation to provide electricity for the new plant.

Remark:

Sintering plant: mainly produces sinter, firing iron ore (including other ores) into soft powder for blast furnace smelting.

Afrochine: Zimbabwean subsidiary of Qingshan Iron and Steel Group, mainly engaged in chromium mining and smelting.