Sable Chemicals
Conrad Mwanawashe Business Reporter—
Zimbabwe’s sole producer of ammonium nitrate fertiliser, Sable Chemicals, targets to produce 240 000 tonnes by the 2018 /19 agricultural season based on a number of initiatives implemented during the remodelling of the business.To achieve the 240 000 tonnes production per annum, the company requires timely release of foreign currency and an increase in it’s rail tank fleet to about 210 from the current 107.
But for now, engineering manager Stanley Makunde said Sable Chemicals is “alive and kicking” and in line to meet the country’s demand for ammonium nitrate fertiliser of 150 000 tonnes per season.
“We are ready to go,” Eng Makunde told The Herald Business during a tour of Sable Chemicals production facilities in Kwekwe yesterday.
Based on the new model, production although currently at about 10 000 tonnes per month, is targeted to double up to 240 000 per annum by the 2018/19 agricultural season, provided a few huddles are solved.
“The new production model which is based on full importation of ammonia will enable Sable to produce to full capacity, assuming the availability of foreign currency, increasing the number of rail tank cars used to ferry ammonia whereas for the old model production was dependent on availability of electricity,” chief executive officer Bothwell Nyajeka said yesterday.
Sable required 100MW of electricity at full production under the electrolysis model, which put a strain on the national grid.
Moving to the new model means, therefore, savings in power of at least 90MW as the current model requires a maximum of 10MW at full capacity.
“At this level of production, Sable will fully meet Zimbabwe’s demand for nitrogen fertiliser and will able to export any surplus. Production costs will significantly decrease resulting in lower prices of ammonium nitrate, lower than imports, to the farmer,” said Mr Nyajeka.
But to achieve this, Sable is currently engaging the National Railways of Zimbabwe to improve the availability of locomotives so that the turnaround time of tank cars is reduced.
As Eng Makunde said it is currently taking about 20 days to move tank cars from ammonia suppliers in South Africa to Sable but improvement of the fleet will reduce the turnaround time to as low as 10 days.
On the table for discussion with NRZ is a consideration for Private Public Partnerships aimed at achieving refurbishment of locomotives to increase tank car pulling capacity and refurbishment of tank cars to increase ammonia carrying capacity.
This will be financed by a loan facility from the Afreximbank.
“We have negotiated a facility with Afreximbank and $11 million of the facility is earmarked for fleet expansion,” said Mr Nyajeka.
The company is critical to the agricultural sector in Zimbabwe as it is the sole manufacturer of ammonium nitrate, which is also used in the production of basal and blended fertilisers.
Critically, Sable is producing ammonium nitrate fertiliser for Command Agriculture.
Command Agriculture, launched by Government targets to produce about 2 million tonnes of maize this season.
Turning to Government’s measures to control importation of cheap quality products which are locally produced such as fertiliser, Mr Nyajeka said Statutory Instrument 64 protects farmers from getting inferior imports as well as local industry while saving foreign currency.