Zimbabwe sets Tuesday deadline for chrome miner to cede half its claims (Reuters Africa – June 7, 2016)


HARARE (Reuters) – Zimbabwe has set a Tuesday deadline for the country’s second largest ferrochrome producer Zimbabwe Alloys to hand over half its chrome claims or risk having them seized, according to a letter seen by Reuters.

The Southern African nation holds the world’s second largest deposits of chrome, which is smelted to produce ferrochrome, a raw material used in the making of stainless steel.

Zimbabwe’s mines minister last year asked Zimasco, a unit of China’s Sinosteel and Zimbabwe Alloys (ZimAlloys), which owned 80 percent of all chrome mining claims, to release some ground for distribution to new investors.

Sinosteel’s Zimasco said in April it had ceded half its mining claims to the government.

Francis Gudyanga, a senior official in the mines ministry, said the government wanted to redistribute ZimAlloys claims to new firms as per rules it issued in October and accused the company of failing to heed the demands.

“Despite repeated efforts to have a common understanding you have remained evasive with regards to this matter,” Gudyanga said in a letter dated May 30 addressed to the company previously owned by Anglo American until 2005.

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