Tinashe Makichi Business Reporter
Zimbabwe’s sole ammonium nitrate producer, Sable Chemical is targeting to raise annual production by 50 percent next year after securing a $24 million loan from the African Export and Import Bank, an official has said. The company is currently producing 8 500 tonnes per month, which translates to about 102000 tonnes per year. But production is expected to progressively increase to 150 000 tonnes next year before reaching 200 000 tonnes a year later, Chemplex Corporation chief executive Mr Misheck Kachere said in an interview. Chemplex Corporation, a unit of the Industrial Development Corporation, is a major shareholder in Sable Chemical.

The company has installed annual capacity of 250 000 tonnes of ammonium nitrate and is currently operating at 40 percent capacity. Ammonium nitrate is a critical input used in the manufacturing of top dressing fertilisers. Mr Kachere said the company has set new targets after securing working capital from the regional financial institution. “We want to go to (full) capacity using our own resources and the (credit) facility that has just been availed by the regional institution,” said Mr Kachere.

Sable has an ambitious $1 billion long-term plan to migrate from the current electrolysis system to coal bed methane. The company has been working on re-engineering its ammonia producing system which, upon completion, will significantly reduce its power consumption by as much as 115 megawatts, said Mr Kachere. Gasification of coal — to produce hydrogen — will be used to substitute the current process of electrolysis of water. Mr Kachere said a Chinese company has completed a bankable feasibility study on the gasification project.

“We spent about $1 million to do a feasibility study and right now we have completed a bankable feasibility study with which we can go to a bank and ask for money. “This was done by a Chinese company and the next stage would be fundraising. We are talking to the company that did the feasibility study to assist us in securing funding from China,” said Mr Kachere. Zimbabwe is facing shortages of AN, with only 90 000 tonnes in stock against national demand of 300 000 tonnes.

“There is a stock of 25 000 tonnes from Beira . . . and we intend to import another 120 00 tonnes to argument local supplies.”