Mr Robert Gabriel Mugabe President of Zimbabwe has visited Kwekwe district and then expressed an anxiety for the serious matter, which such two important companies in the industries of Zimbabwe as Zimasco and Ziscosteel have suspended to operate.

Therefore, Mr Mugabe instructed immediately the authorities concerned to set up some measures for the resumption with a target to materialize it in April. Zimasco has stocked 70,000 tonnes of chrome ore and said that, as soon as the world market of ferrochrome has recovered, the Kwekwe plant will resume producing ferrochrome.

Although it is not known from when Zimasco and Ziscosteel have suspended to operate, the government of Zimbabwe said that these shutdowns are due to the sanction by western world. Also, Zimbabwean government pointed out that, owing to a depression of the world economy emerged from autumn of 2008, the situation to suspend operations has been multiplied.

Zimbabwe has been suffering from a serious shortage of electric power from a long time ago and this negative aspect of electric power has put a substantial influence on productions of ferrochrome, nickel, platinum and steel, which are major industries in Zimbabwe. It has relied a majority of coal supply for generation of thermoelectric power on imports and both of livelihood and industrial usages have been suffering from a chronic shortage of the power supply.

The cost to produce high carbon ferrochrome in Zimbabwe is supposed to be less competitive with this spot price as mentioned above and, therefore, it is necessary for a Zimbabwean producer to reduce its production cost. In order to cope with this serious market situation, Zimasco seems to have an intention to implement the countermeasures, including that to cut wages of the company's executives by 40%.

(Sourced from www.texreport.co.jp)