Zimbabwe Miners Federation (ZMF) Henrietta Rushwaya raised the issue of high risk predatory buyers who take advantage of the domestic market, especially during periods where the export market is effectively closed.
Predatory buying cartels are resulting in USD$ 30 to USD$ 70 per tonne of foreign currency revenue being lost on trading.
“The current low predatory domestic market prices offered leaves Zimbabwean chrome producer’s growth vulnerable; with the limited opportunity to grow primarily dependent on foreign direct investment at the expense of the indigenous investor/producer,” Rushwaya said.
Revenue lost due to predatory buyers is preventing chrome producers from investing in value addition according to the miners president.
The ZMF leader went on to say that there is need to implement the new domestic and export pricing model which is prescribed in the Chrome Producers Policy draft.
Implementation of the Draft Chrome Producers Policy which was presented to the Ministry of Mines
“This will become imperative in the next three years as surface chrome will be depleted and operations will require underground exploitation below 20 meters in depth,” Rushwaya said.
“The newly revised pricing model when implemented will further increase employment via associated
chrome services in transportation, weighbridge management and charges, services, parts…”
Minerals Marketing Corporation of Zimbabwe (MMCZ) pricing is not in line with international market, according to Rushwaya and the government revenue generation is reduced as a result.
Predatory buying is leaving chrome producers further undercapitalised with indigenous miners surrendering controlling stakes of their mines in order to stay in business.
“Revenue generated from increased production is shifted to the majority stakeholders and buyers which is then Repatriated out of Zimbabwe,” Rushwaya explained.