HARARE, November 19 (The Source) – The Zimbabwe Mining and Smelting Company (Zimasco) has signed an agency agreement with New York-based Traxys to market and distribute its ferro-chrome products in North America, a deal seen reviving the struggling miner.
Zimasco, which was put under judicial management in June last year due to operational challenges, owes FBC Bank, CABS and Zimasco Private Limited $3,8 million, $8,4 million and $998,000 respectively.
The company has been struggling since its takeover in 2007 by Chinese shareholder, Sinosteel Corporation, due to depressed ferrochrome prices and high operating costs.
The deal with Traxys, which has been granted exclusive rights, takes effect from January 1, 2018.
Traxys operates as a metals marketing, distribution, and trading company which provides supply chain management services to the specialty metals, minerals, and mining industries.
Zimasco is an integrated ferrochrome producer with chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and tributor operations along the Great Dyke.
According to statistics from the US International Trade Commision and Commerce Department, US imports of high-carbon ferro-chrome from Zimbabwe amounted to 17,903 tonnes in the nine months to September.
US high-ferrochrome were priced between 64 cents to 67 cents per kg on November 9, according to American Metal Market.