The project, which is being financed by Chinese mining
giant — Tsingshan Holdings — is one of the ventures taking off on the back of President
Mnangagwa’s “Zimbabwe is Open for Business” thrust.
President Mnangagwa met with Tsingshan Steel chairman Xiang
Guangda, during his State visit to China in 2018.
This comes as Government continues to receive endorsements
with the latest being two global mining giants — Australia Stock Exchange
listed firm, Prospect Resources and New York Stock Exchange-listed Caledonia
Mining Corporation — that indicated were impressed with their operations in
Zimbabwe and the support they were receiving from the authorities.
Under the thrust, Government is prioritising private sector
led growth as a means to revive the economy and foster growth towards upper
middle income status by 2030.
Addressing a post-Cabinet briefing on Tuesday, Information,
Publicity and Broadcasting Services Minister Monica Mutsvangwa, said Cabinet
had been briefed on the mining sector progress and was impressed.
Of this brief, the Tsingshan steel project is one of the
major highlights and a memorandum of understanding has already been signed with
the Chinese mining giant in various mining projects including stainless steel.
Some minerals covered under the MOU include ferrochrome,
coking coal, iron ore and carbon steel, flurolite and limestone, according to
documents gleaned by The Herald
Tsingshan is one of the largest steel making giants
globally, employing 80 000 people and has an annual output of 10 million tonnes
of stainless steel with a turnover of $30 billion.
Said Minister Mutswangwa: “Cabinet was informed that a
Memorandum of Understanding was signed with Tsingshan Steel for investment in
mining projects towards the production of stainless steel.
“Production in the interim will commence with carbon steel.
Tsingshan, through its subsidiary Afrochine, constructed two additional
ferrochrome furnaces in 2020, and will construct additional furnaces in May
2021.
“The ground-breaking ceremony for the iron ore mine and
carbon steel plant is scheduled for May 2021 in Manhize, Mvuma. A flurorite and
limestone production plant will soon be set up.”
This comes as Tsingshan in 2018 became one of the first
investors to show confidence in the new dispensation by signing a US$1 billion
investment deal in the lucrative steel sub-sector.
“To enable the implementation of the project, Tsingshan had
to invest in coke batteries.
“His Excellency the President in 2020 visited the first
phase of the coke project, which will produce 150 000 tonnes per annum. This
project is almost complete and the first coal feed into the battery will be on
March 24, 2021, with a small ceremony marking the event. Production will be
about 60 days late at which date or after which the coke battery will be
officially commissioned by His Excellency, the President.”
To ensure accountability, transparency and environmentally
friendly operations, Cabinet also directed that submission of a current tax
clearance certificate is now a requirement for mining title renewal.
The Environmental Management Agency (EMA) will also
undertake audits to ensure that contracted companies conduct their work
according to set and agreed standards and regulations.
The Minerals Marketing Corporation of Zimbabwe (MMCZ) and
Fidelity Printers and Refineries (FPR), will also issue a certificate of
production from previous year and this is set to go a long way in curbing
under-declarations as well as speculative holding of mining title.
Zimbabwe has lost valuable minerals to unscrupulous dealers
who took advantage of some leaks that the Second Republic is now addressing.
Minister Mutsvangwa also advised that Cabinet had reviewed
the ban on mining in rivers and directed that “de-siltation activities in
portions of Angwa, Save and Mutebekwi rivers can commence subject to the
condition that no chemicals are utilised and the structures of the rivers are
not affected” by such mining operations.
This comes as some mining operations in some areas have
changed the course of rivers, in the process affecting many villagers and other
economic activities such as farming.
The de-siltation process, said Minister Mutsvangwa, shall
be supervised on “a permanent presence” basis by officials from the Ministries
of Environment, Climate, Tourism and Hospitality Industry and Mines and Mining
Development, with investor funding. Herald
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