China’s Tsingshan Holding Group is set to build an iron and steel plant in Zimbabwe with an annual capacity of 1.2 million tonnes at an investment of 1 billion U.S. dollars, said corporate sources.
The proposed project by the world’s top nickel and stainless steel producer includes the development of an iron ore mine as well as furnaces for producing ferrochrome.
Sources of the group told Xinhua Wednesday that the project will be operated by its subsidiary Dinson Iron and Steel Company and will have an annual turnover of 1.5 billion dollars from the processing plant and iron ore mine.
Between 4,000 and 5,000 people will benefit from the project through employment across value chains.
Tsingshan, through its Zimbabwean subsidiary Afrochine, already produces ferrochrome in Zimbabwe at its plant in Selous, 85 km west of the national capital Harare.
In April, the Chinese giant announced that it had started construction of its second 150,000-tonne coke battery in Hwange, Matabeleland North Province, following completion of the first project of the same capacity in the previous month.
The construction of a third coke battery and power station is expected to start in November.
Tsingshan’s mega projects are in support of Zimbabwe’s value addition and beneficiation initiatives, which feed into the country’s vision 2030 of achieving an upper-middle-income economy through increased mining sector value and manufacturing.
The southern African country is pushing for more than tripling mining sector value thereby increasing revenue from mining to 12 billion U.S. dollars annually by 2023.
Chinese firms have over the past few years become major foreign investors in Zimbabwe’s mining sector, contributing immensely to the country’s growth in this regard. Enditem