President Mnangagwa is expected in Beitbridge today for the ground-breaking ceremony of the Palm River Energy and Metallurgical Special Economic Zone (SEZ) where the Government, in collaboration with a Chinese mining company, is developing a US$3,6 billion energy industrial park.
The project,
located 20km west of Beitbridge town, seeks to introduce the production of
stainless steel.
The energy and
steelworks initiative has already employed 400 locals in its first year, with
the expectation that it will ultimately employ over 2 000 workers once it
becomes fully operational.
Establishment
of the industrial park as an integrated mining and energy hub follows
discussions between chairman of Palm River Energy, Mr Xong Xi Dong and
President Mnangagwa.
The project
will cover 5 100 hectares within an SEZ and is expected to make substantial
contributions to Zimbabwe’s mining and energy sectors.
The first phase
of the project is being carried out through a joint venture between the
Government, Xintai Resources and Tuli Coal.
The park
comprises a coking plant that will have an annual capacity of producing one
million tonnes of coke, a ferro-chrome smelting plant that will produce 100 000
tonnes of high-carbon ferro-chrome, and a 1 200MW coal-fired thermal power
plant.
Any surplus
electricity will be transmitted to the national grid, while the ferro-chrome
plant will facilitate the production of special and stainless steel and
castings.
Coal supply to
the project will be obtained from Tuli Coal Mine and, in line with plans to
export coal products to international markets, will yield significant foreign
currency earnings.
The mining
sector’s role in Zimbabwe’s economy cannot be overemphasised, as it represents
over 60 percent of the country’s export receipts and attracting more than 50
percent of foreign direct investment (FDI).
It also
contributes 13 percent to national Gross Dommestic Product, creating more
business opportunities downstream, and generating tax revenue for the
Government.
Mines and
Mining Development Ministry deputy director communications, advocacy and mining
community sustainability, Mr Wilfred Munetsi said the stage had been set for
the Head of State and Government’s visit to Beitbridge.
“We have
covered a lot of ground in terms of planning and we are ready for the
ground-breaking of the project by President Mnangagwa,” he said.
“The project
covers an area of 5,163 hectares and is planned to be constructed in five
phases, with a total construction period of 12 years.
“The
construction period of the first phase of the project is two years, with a
total investment of US$237 million, mainly used for the construction of an
annual output of 200 000 tonnes of ferrochrome and supporting coal mines,
coking, infrastructure and other projects.
“In order to
meet the raw materials required for production in the park, resource guarantee
bases have been established in Tuli and Wanji respectively.”
Mr Munetsi said
upon completion of the Palm River Energy and Metallurgical SEZ, the project
will become the world’s lowest comprehensive cost and the most competitive
energy and metallurgical special economic zone of the whole industry chain.
Among other
things the project realises the recycling of energy, photovoltaic green power,
coke oven, submerged heat furnace tail gas power generation, chromium iron
water, liquid chromium slag, dust removal flue gas waste heat power generation,
and the generated energy is reused for industrial projects in the park.
Mr Munetsi said
besides creating thousands of jobs, the project will also provide technical
training to Zimbabwean workers, improve their professional ability and realise
the integration of teaching and practice of technology transfer and ability
improvement.
In 2018,
President Mnangagwa declared Beitbridge town a SEZ as part of the Second
Republic’s drive to attract investment under the “Zimbabwe is open for
business” mantra.
Government’s
adoption of the SEZ model aims to enhance FDI and improve local business
viability, leading to increased employment and economic growth in targeted
areas. Herald
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