The Sunday News
Michael Magoronga, Midlands Correspondent
PRODUCTION at Kwekwe-based ferrochrome producer, Portnex Private Limited has not started since the beginning of the year due to a number of challenges, among them acute shortage of electricity.
The firm was producing ferrochrome using the Zimasco Western Plant on a five-year lease agreement. Reports also indicate that the company is choking in debt, a situation that has resulted in Zesa cutting supplies to the plant. Since breaking for the festive holiday in December last year, the company has failed to resume operations, putting more than 200 workers at risk of losing their jobs.
Portnex general manager Mr Deon Hefer, confirmed that all was not well and was quick to point out that they were doing all in their power to get back on track.
“We are negotiating with relevant authorities right now so that we rectify challenges to do with power. Besides the prolonged power outages that are hampering production, we are also negotiating the power charges that are making it difficult for us to operate as they are chewing much into our coffers. But we are very confident that the negotiations will yield positive results,” said Mr Hefer.
He said if all goes according to plan, the plant will be back to life by next week.
“It is our intention that we get back to production again by early next week if all goes well,” he said.
Besides power challenges, Mr Hefer said chrome prices were not helping matters either.
“Chrome prices on the market continue to tumble and this has given not only our company, but most chrome producers, challenges as the costs would be too much. If you calculate the cost of mining chrome, in which in most cases we use contractors and that of power then it becomes a challenge for any company to break even,” said Mr Hefer.
Portnex and Zimasco signed a lease deal in 2015 that saw the former inheriting the Western Plant while Zimasco operates the Eastern Plant, which has two furnaces. By last year, only two of Portnex’s three plants were operational while the third one was off. Portnex produces 200 tonnes of ferrochrome per day using chrome ore supplied by tributaries mining on Zimasco claims.
