Mnangagwa commissions US$1 billion Mhanhize iron and steel project
President Emmerson Mnangagwa yesterday commissioned phase 1 of Dinson Iron and Steel project in Mhanhize which will have an annual turnover of US$600 million.
Rudairo Mapuranga
The Dinson Iron and Steel Company (DISCO) Steel Plant is one of Tsingshan Group of China’s mining projects in Zimbabwe. Tsingshan Group is one of the “second Republic’s” biggest investors with various other projects such as Afrochine Smelting (Pvt) Ltd in Selous, Mashonaland West which is into chrome smelting and Dinson Colliery (Pvt) Ltd in Hwange, Matebeleland which is into coke production. All these projects are inter-linked as both the ferrochrome and coke are required in the steel production.
Speaking at the ground breaking ceremony for the phase one of the project, President Mnangagwa said the project is a game changer and will contribute significantly to economic revival and the achievement of the upper middle income economy.
“I am informed that Capital Investment for this Phase 1 of the project is about USD1 Billion and is expected to have an annual turnover of over USD600 Million per annum. The project is set to employ over 2000 employees during the first phase. At full throttle, the Steel company itself is expected to employ more than 10 000 workers directly while it will create employment for millions of Zimbabweans indirectly through the upstream and downstream industries,” Dr Mnangagwa said.
The President said, the project is in line with the second Republic’s drive to make Zimbabwe a massive infrastructure hub.
“Steel production is quite critical in the development of any nation, particularly in infrastructure development. This project therefore dovetails well with the Second Republic’s massive infrastructure development drive as we seek to revamp and modernize our infrastructure for the benefit of our people. This project, in addition to the ZISCO Steel project which is set to be revived, will produce steel not only for the domestic market but will also service the whole Southern African region and global markets thereby generating foreign currency through exports,” Mnangagwa said.
Speaking at the same event, the Minister of Mines and Mining Development Hon Winston Chitando said the coming in of Mhanhize iron and steel project is in sync with the US$12 billion milestone which focuses on exploration, opening of new mines, expansion of existing ones as well as value addition and beneficiation for the mining sector to fetch a US$12 billion annual revenue by the end of 2023.
“As outlined in the National Development Strategy 1 (NDS1), some of the strategies being employed to grow the mining sector include attracting funding, enhanced exploration, opening of new mines, re-opening of closed mines, expansion of existing mines as well as improve levels of local mineral beneficiation.
“This integrated Iron and Steel manufacturing plant will be designed to manufacture carbon steel by the chemical reduction of iron ore using an integrated manufacturing process. The iron from the blast furnaces is converted to steel in a Basic Oxygen Furnace (BOF) as well as in Electric Arch Furnaces (EAF),” Chitando said.
Minister of State for Mashonaland East Province Senator Apollonia Munzverengi said the province is a clear testimony of the country’s commitment towards value addition and beneficiation of minerals.
“As outlined in the National Development Strategy 1 (NDS1), some of the strategies being employed to grow the mining sector include attracting funding, enhanced exploration, opening of new mines, re-opening of closed mines, expansion of existing mines as well as improve levels of local mineral beneficiation. This project is a clear testimony of our commitment towards value addition and beneficiation of our country’s minerals. I would like to congratulate you, Your Excellency’s visionary leadership which is anchored around growing the mining sector economy to attain the Nation’s Vision of a prosperous and inclusive Upper Middle-Income Economy by the year 2030,” Minister Munzverengi said.
This integrated Iron and Steel manufacturing plant will be designed to manufacture carbon steel by the chemical reduction of iron ore using an integrated manufacturing process. The iron from the blast furnaces is converted to steel in a Basic Oxygen Furnace (BOF) as well as in Electric Arch Furnaces (EAF).