Transnet to prop up Zim’s NRZ with R4.83 billion

JOHANNESBURG – Zimbabwe is looking to Transnet’s R4,83 billion capitalisation of the National Railways of Zimbabwe (NRZ) to bring capacity into the parastatal which has failed to move about 200 000 tons of chrome ore from ferrochrome producer Zimasco’s mines.

The logistical problems that miners are facing could be resolved if the government of Zimbabwe can push through finalisation of the recapitalisation of NRZ by Transnet, said an official from NRZ on Wednesday.

Transnet is expected to help raise its freight capacity and enhance its shipment volumes, and the Zimbabwean railways parastatal had earmarked tons of cargo in 2017.

“As you might be aware, the parastatal is under recapitalisation and the government has made significant strides by identifying an investor to revive NRZ and it is under this arrangement that the issue of improving on efficiency, as well as number of wagons, not only for Zimasco, but all our clients, is being taken note of,” said NR spokesperson Nyasha Maravanyika.

Other mining companies have had to move ore and production matte using road, which comes at a higher cost, as the NRZ is sitting on dilapidated infrastructure and obsolete wagons.

Zimasco said it is struck with 200, 000 tons of ore that the NRZ had failed to move on time. They have about four smelting furnaces, two of which are being used by Portnex, a South African company under a lease agreement with the Zimbabwean company.

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