1 January 2013

Zimbabwe: Zimalloys Eager to Reopen Mines

Ferrochrome producer Zimbabwe Alloys Limited says it expects to secure investors soon for operations at its two mines in Mutorashanga to resume and create employment for residents living in the compounds.

The company is currently looking for investors after failing to secure a loan to refurbish furnaces as well as retiring debts.

Workers retrenched by ZimAlloys at its Sutton and Caesar mines in Mutorashanga, about 115km north west of Harare, have been staying in the compounds which closed in 2008 and have no water and sewer systems.

ZimAlloys mines manager Mr Phillip Chikwava said closure of operations at the two mines led to unemployment and irregular servicing of electricity and sewer systems.

"We are worried about people living in those areas since there is no other form of employment, except mining," he said.

"Our hope is to get investors soon and get the mines back to their operational capacity, thus creating employment.

"Communities have grouped themselves into units to pay their bills so that they can carry on pumping water from the boreholes and we have regularised them with Zesa for power supply."

The ongoing global economic crisis and lower-than-expected levels of economic activity affecting the world's key regions of Europe, the United States, Japan and China, have also affected the nearby Zimbabwe Mining and Smelting Company which has had to scale down operations.

Zimasco has sent its workers on compulsory leave while cutting their salaries by half, amid fears it might soon fail to pay them.

New Ziana

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