ZETDC, Dinson steel sign power deal
China’s Tsingshan Holding Group Company Limited’s subsidiary, Dinson Steel and Iron Company has signed a joint venture agreement with ZETDC for the construction of a 100km power line from Sherwood to the Mvuma based US$1b steel plant.
Prince Sunduzani
The company, which is setting up a US$1 billion steel processing plant in Chivhu, last week announced that it had signed a joint venture with ZETDC as part of its efforts to realise the completion of the setal project.
A delay in the construction of the power line had held back the construction of the plant touted to become the biggest steel manufacturer in the Southern African Development Community.
“Today we signed a Joint Venture Agreement with @ZetdcOfficial for construction of the 100km power line from Sherwood to the Mvuma steel plant site. Grateful for the cooperation of stakeholders for making this happen,” the company announced on its official Twitter account.
Zesa is on record saying the steel plant will be the largest consumer project for ZESA, requiring up to 500MW in the next two years, which is equivalent to almost a third of today’s national consumption.
Last year the company indicated that it had completed drawing all the plans for the transmission system, which will include two large power substations.
The line that will come from Sherwood near Kwekwe will supply the two lines that constitute the project.
On full production, the integrated project that comprises a carbon and steel plant, an iron ore mine, and a ferrochrome plant is poised to produce 1.2 million tonnes of iron and steel a year. Apart from creating thousands of jobs, the project will revive the country’s collapsed steel industry, which is currently relying on imports from South Africa.