Boost for fertilizer production
Zimbabwe’s largest fertiliser and chemical manufacturing firm, Chemplex Corporation, is spending approximately US$36m upgrading the Zimbabwe Phosphates (Zimphos) and Dorowa Mines in a move to boost local fertiliser production.
Chemplex, a unit of the Industrial Development Corporation of Zimbabwe (IDCZ), will install new equipment and machinery at its two units—the Buhera-based Dorowa Mines and Harare-based Zimphos, which is the country’s sole producer of phosphate fertilisers, aluminum sulphate for water treatment and sulphuric acid.
The latest development, which was confirmed by IDCZ chairman, Winston Makamure, comes after the government adopted a five-year fertiliser import-substitution programme.
The programme is expected to propel phosphates production to 100 000 tons from the current 80 000 tons.
It is also expected that imports will be reduced to 140 000 tons from 180 000 tons.
“Zimphos has started the upgrades which will be in stages or in a modular fashion. There was no inordinate delay except normal lead times for ordering and receiving the upgraded equipment which is imported.”
“The upgrade also had to be sequenced with the upgrade at Dorowa Minerals since the production at Dorowa Minerals is fed to Zimphos for processing and further value addition,” Makamure said.
He said there were efforts to restore a sulphuric acid plant at Zimphos which has not been operating at full capacity.
This is aimed at improving the production of fertiliser and water chemicals. The plant is expected to be complete by year end.
Makamure said there were other long-term projects in the pipeline that would require a huge investment and feasibility studies.
The latest project being propelled by Chemplex is the construction of a Phosphoric Acid plant at Zimphos.
The latest plans to revitalise fertiliser manufacturing comes after the Reserve Bank of Zimbabwe (RBZ) in 2017 availed US$5m to Zimphos aimed at recapitalising the company.
The investment added up to US$10m including the US$5m already injected by the RBZ on Dorowa Minerals.
The planned investments in Zimbabwe’s fertiliser industry will trigger a significant reduction in the cost of the products and make them more competitive on both the local and the export markets.
Zimbabwe’s demand for fertiliser in a normal and good farming season is about 600 000 tons, both basal and top dressing, of which 70% goes towards government farming programmes.
The upgrade at the two plants comes after the government has intensified efforts to revive all fertiliser manufacturing companies in order to cut the fertiliser import bill that has for years stretched into billions of dollars.
Under the five-year fertiliser import substitution programme that the government has adopted, nearly US$80m would be invested to enhance the capacity of local firms with prices expected to gradually decline by an average of 28% over the next four years.
Ammonium nitrate, according to the roadmap crafted by the Ministry of Industry and Commerce, will gradually drop to US$18 for a 50kg bag from the current US$25 while the price of phosphates will decline to US$9.25 from US$13.
The roadmap will be largely anchored on ramping up production at Sable Chemicals, the country’s sole ammonium nitrate producer and Chemplex Phosphates production units.
An investment of approximately US$40m will see Sable Chemicals increasing output to 240 000 tons of ammonium nitrate by 2024. This in turn, will reduce imports from the current 220 000 to 10 000 tons.
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