eBusiness Weekly
Michael Magoronga
Operational challenges at Kwekwe-based ferrochrome producer, Portnex Private Limited, are threatening the future of the company with the firm yet to begin production since the beginning of the year.
The firm, which produces ferrochrome using the Zimasco Western Plant on a five-year lease agreement, has since failed to start production since the beginning of the year owing to a number of challenges, chief among them prolonged load — shedding at the plant.
Unconfirmed reports also have it that the company is believed to be swimming in debt, a situation that has resulted in the power utility, ZESA switching off the plant.
As a result, the company has since reportedly retrenched some employees as a cost cutting measure.
Since breaking for the festive holidays in December 2019, the company has failed to come back on track, jeopardising more than 200 families.
Portnex general manager, Deon Hefer, although could not confirm that the firm has been disconnected, confirmed that all was not well at the plant 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 Hefer.
He said if all goes according to plan, the plant will be back to life by next week.
“That is our intention that we get back to production again by early next week if all goes well, “he said.
Besides power challenges, 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 the chrome, in which in most cases we use contractors and that of power then it becomes a challenge for any company to breaking even,” said 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.
Mining has been identified as one of the sectors that are likely to provide quick economic turnaround for the country.
