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ZIMBABWE BANS EXPORT OF CHROMITE TO BOOST DOMESTIC REFINING

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ZIMBABWE CHROMITE EXPORT BAN,

18 months ago, Zimbabwe declared that it would soon ban the export of unrefined chromite in efforts to give domestic refineries a boost and ultimately, adding to Zimbabwe’s model to stimulate economic growth. Currently, Zimbabwe and South Africa hold around 90% of the world’s chromite reserves. Up until now, Zimbabwe exported most of its raw materials to China and South Africa where it is refined into a more high-grade substance called Ferrochrome. The refining of chromite into ferrochrome seems to be a profitable business and Zimbabwe’s plan to capitalize on this process by generating domestic revenues for themselves. The material ferrochrome is one of the main ingredients in stainless steel and high grade steel products.

WHAT THIS COULD MEAN FOR THE CHROMITE MARKET…

As we know through simple economic principles, that when the supply of a product available to a demanding market is decreased, then we tend to see an immediate increase in the price of the product. With countries like China focused heavy on the manufacturing of steel products, we should see a rise in demand for the product once the effects are felt from Zimbabwe’s cuts off. Buyers like China and South Africa will soon be left to make a decision of possibly buying materials from other countries with similar high-grade chromite reserves like India, Russia, and Albania.

Source Article:

http://www.miningweekly.com/article/zimbabwe-bans-chrome-exports-to-boost-refining-2011-04-19

Written By:

Lonnie Ryan, Stentor Media

www.stentormedia.com


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