Business - Economic Updates - Featured - Mining - May 12, 2021

Chinese mining giant to build iron, carbon steel plant in July

Government, in a move to achieve a US$12 billion Mining industry milestone by 2023 has announced that China’s Tsingshan Holding Group will start constructing an iron ore mine and a carbon steel plant in Zimbabwe from July, this year.

Tsingshan is a global player of repute which ranks at number 329 on the global 500 fortune companies index. The company has been in Zimbabwe for a decade now, first in Selous, then Hwange and now in Mvuma

In June 2018, the company signed a $1 billion outline agreement with Zimbabwe to build a 2 million tonne-per-annum steel plant and has been carrying out exploration and seeking more mineral concessions.

The Chinese company, through its Zimbabwean Subsidiary Afro chine, already produces ferrochrome, which will also be used in the production of steel.

Addressing a post cabinet briefing on Tuesday, Information, Publicity and Broadcasting Minister Monica Mutsvangwa announced that cabinet received an update on the Tsingshan Consolidated Mining and Value Addition project which will significantly contribute towards achievement of the US$12 billion Mining industry milestone by 2023.

“A ground breaking ceremony for the iron ore mine as well as a Carbon Steel Plant will be held in July at Manhize, Mvuma,” she said.

In the update, cabinet was advised that since the signing of an MOU in 2018, Tsingshan had completed two high carbon ferrochrome furnaces in Selous, in April 2021; and completed the construction of a 150 000 tonne coke battery in the Hwange in April 2021.

“In May 2021 the company had commenced construction of an additional 150 000 tonne coke battery. Tsingshan will in November 2021 commence construction of a third coke battery and a power station in Hwange area,” Minister Mutsvangwa added.

To ensure accountability and transparency in the operation of Tsingshan, government has assigned an Inter-Ministerial Committee to coordinate the Consolidated Mining Project.

“The Ministries in the Committee are the Ministry of Mines and Mining Development whose Permanent Secretary will chair, The Ministry of Transport and Infrastructural Development, The Ministry of Energy and Power Development, The Ministry of Lands, Agriculture, Fisheries, Water and Rural Resettlement, The Ministry of Local Government and Public Works, The Ministry of Finance and Economic Development and The Ministry of Home Affairs and Cultural Heritage,” as confirmed by Minister Mutsvangwa.

This whole development is in line with the National Development Strategy 1 (NDS1) through which government said it is determined to enhance the mining sector by investing towards exploration, beneficiation and value addition of minerals.

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