Zimbabwe’s got itself a brand new iron and steel manufacturing plant, courtesy of the Chinese.
Metal Miner reports that this U.S. $1.5 billion Chinese-built plant’s blast furnace recently came online and is already producing pig iron, a crucial ingredient for making steel.
The team over at Dinson Iron and Steel Company (Disco), the Zimbabwean subsidiary of Chinese steel giant Tsingshan Holding Group, announced the production of their very first batch of pig iron on June 13.
The Mvuma steel plant, situated about 120 miles south of Zimbabwe’s capital of Harare, is slated to be Africa’s largest integrated steelworks. According to a report in the South China Morning Post, it will also be one of Africa’s leading iron and steel producers.
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The Plant Projects a Steel Manufacturing Capacity of 5 Million Tons
The Chinese firm plans to take things up a notch next month. That’s when the new steel manufacturing plant will start producing billets, the precursor to making steel.
There are also plans to begin creating steel products like pipes, bolts, nuts, and even smaller slags, rolled tubes, fences, shafts, wires, and bars.
As part of the first production phase, the new plant recently set a target to make 600,000 tons of steel annually. Later, after the final phase, that production target grows to more than 5 million tons. The plant will also create jobs for the people of Zimbabwe. In the first phase alone, the new steel manufacturing facility hopes to employ around 2,000 people. This figure would double in the second phase.
Zimbabwe’s Path to Economic Renewal through Local Resources
According to some experts, the steel plant could be a game-changer for Zimbabwe. The country has wanted to revive its iron and steel industry for a while now, especially after its largest steel plant shut down during the reign of ex-president Robert Mugabe.
In the coming years, the plant hopes to make use of Zimbabwe’s ample deposits of iron ore, chrome, coal, and more to produce iron and steel products that will strengthen the country’s value chain. Government officials recently stated that companies will mine and process these raw materials locally, with reserves projected to last for a whopping 100 years.
As a nation, Zimbabwe remains blessed with a wealth of natural resources like precious metals, nickel, ferroalloys and coking coal.
According to analysts from inside and outside the country, these resources have the potential to help alleviate the country’s economic crisis.
Zimbabwe Set a High Bar
The Engineering, Iron, and Steel Association of Zimbabwe (EISAZ) has set its sights on raking in a staggering $6 billion from exports each year. Clearly, they’re counting on this $1.5 billion steel plant in Manhize to help them achieve this ambitious goal.
As part of their sector strategy, EISAZ plans to boost operational capacity, improve production efficiency, and create more job opportunities in preparation for the opening of the new plant.
Back in 2008, when Ziscosteel shut down, Zimbabwe found itself forking over more than $1 billion a year on steel imports.
Zisco shut down temporarily due to corruption allegations and mismanagement, though there are plans to revive the facility. However, with the new steel manufacturing facility, the country hopes to reduce its import dependence significantly, thus keeping more of that money within its borders. ▪︎