Zimbabwe’s ferrochrome and chrome industry has greatly evolved over the last 10 years.
The key influence has been the extensive investment by Chinese firms in building ferrochrome capacity in Zimbabwe with further development of its own coal-fired power stations to provide low-cost and reliable electricity to these smelters.
Further to this there has been exponential growth in metallurgical coke production using a combination of new coke battery production and age old “bee-hive” technology. The rebuild of Hwange’s coke battery will also increase availability of metallurgical coke for the region including to neighbouring South Africa and Zambia.
Zimbabwe has abundant resources of chrome ore and coupled with lower power costs (when you are producing it for your own consumption) and so we believe will result in Zimbabwe being one of the lowest cost producers of ferrochrome in the world.
Logistics and political uncertainty will remain a challenge, but with Chinese influence firmly entrenched we believe there will be smooth sailing for ferrochrome production and ore and alloy exports for years to come.
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