Published: 05 February 2014

CHROME producer the Zimbabwe Mining and Smelting Company (Zimasco) will this month lay-off some of its workers due to viability challenges.

Formerly owned by Union Carbide, at least 73 percent of Zimasco is currently owned by Sino Steel Corporation, a multinational company from China.

Last year Zimasco workers were put on a two week rotational compulsory leave on half salary, due to the depressed chrome market. A source who spoke to New Ziana said the matter would be finalised on February 20.

The source said management had revealed that production was not meeting wage costs hence a list of targeted individuals had already been compiled.

"We have since been advised that from the 20th of February the organisation would put workers on retrenchment because of financial challenges.

"However, we are not sure how many they are targeting to retrench," the source said.

Efforts to get a comment from Zimasco's marketing manager Clara Sadomba were fruitless as she did not respond to a written email which had requested.

As part of its efforts to boost production, Zimasco is currently building a new 600 000 tonnesper annum smelter plant.

Last month Finance Minister Patrick Chinamasa said the capital intensive industry which is the driver of the economy should overhaul its business models to ensure it contributed significantly to the economy.

"We need re-capitalisation of our mines and we need better management of our mines," he said.

Zimasco is the fifth largest high-carbonated ferrochrome producer in the world.

- New Ziana

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