Three Zimbabwean fertiliser firms close

The availability of fertilizer for Zimbabwe's upcoming cropping season is in serious doubt following the closure of three major companies. Fertilizer companies have so far produced 160 000 tonnes against a target of 600,000 tonnes for the forthcoming cropping season.

Dorowa Mine, Iron Duke Mine in Glendale and Zimphos have not been operating since last month, citing persistent power cuts and the unavailability of raw materials.

Dorowa Mine — which makes phosphate rock concentrate — a critical component in the production of fertilizer, ceased operations last month due to erratic electricity supplies. Iron Duke Mine, which makes iron pyrites and supplies Zimphos, has also stopped production due to power cuts and the unavailability of funds to purchase mining materials.

Because of the unavailability from Iron Duke Mine of iron pyrite, an acid used for burning phosphate rock that is used for the production of sulphuric acid, the company is unable to produce fertilizer.

Even if funds were made available now, the companies said they could only produce 300,000 tonnes because of the time that has lapsed before the onset of the rainy season, typically in October or November.

Mr. Eben Makonese, the chief executive officer of Chemplex Corporation under which the three companies fall, said challenges facing Dorowa Mine had ripple effects in the whole production chain. "We have sent people on forced leave on half pay because of these operational challenges. Dorowa is at the beginning of the fertilizer production chain as it produces phosphate rock concentrate, which is then to Zimphos for processing into fertiliser."

He said Zimbabwe Fertilizer Company and Windmill were currently also not producing anything owing to operational challenges. Makonese said Sable Chemicals was getting only 50 percent of raw materials for the production of ammonium nitrate and that directly affected the production of AN fertilizer.

Another senior company official, Mr. Misheck Kachere, said fertilizer has been a controlled product and the prices that they have been charging are five times less than the cost of production. "We are also facing cash-flow challenges owing to government price controls, and this has made it difficult to pay our suppliers."

He said they charged Z$88,000 for a 50 kilogramme bag of Compound D fertilizer yet the packaging bag alone cost them Z$79 000.

The Herald