eBusiness Weekly
Oliver Kazunga
SHANGHAI- headquartered steel producer, Delong Steel Group, intends to set up a US$1,75 billion steel manufacturing plant in Zimbabwe with a capacity to produce 2,5 million tonnes per annum.
The latest development comes hard on the heels of a Memorandum of Understanding signed last month between the Government and two Chinese investors — Eagle Canyon International Group Limited and Pacific Goal Investment for the development of a US$13 billion mining-to-energy industrial park in Mashonaland West province.
The mine-to-energy industrial park, which is the first of its kind in Zimbabwe, is being developed on a 5 000-hectare piece of land from which 1 000ha will be utilised by Eagle Canyon International while the remainder will accommodate investments by other investors under the industrial park initiative.
It is believed that the new mine-to-energy project will boost the economy through beneficiation of minerals and supporting the clean energy drive.
The project involves the construction of two 300MW power stations, a coking plant, lithium salt plant, graphite processing plant, nickel chromium alloy smelter as well as a nickel sulphate plant.
“As part of Eagle Canyon drive we have started inviting partners that we know in China who have the capacity and interest to invest in Zimbabwe. One such group is the Delong Steel Group,” said Eagle Canyon director Lionel Mhlanga.
Delong Steel Group, which is a large scale integrated steel company was registered in 1992 and has an annual turnover of US$33 billion employing 48 000 people. The group produces 8 million tonnes of steel per annum.
In an interview at a local hotel, Delong Steel Group corporate affairs director, Lv Yuhang, said they were in the country to scout for investment opportunities in the iron and steel sector and held a meeting with Mines and Mining Development Minister Winston Chitando.
“We are here to search for opportunities for steel making investment and we have been told that Zimbabwe is rich in iron ore resources and coking coal which are very important raw materials for us to do steel production and also the market around here is huge.
“We are looking for opportunities to set up a US$1,75 billion steel plant that will be producing 2,5 million tonnes per annum,” he said.
The proposed investment follows the development of a US$1 billion steel plant in Manhize near Mvuma by another Chinese company — Dinson Iron and Steel Company (Disco) with an annual production capacity of . . . tonnes.
Construction of the plant in Manhize is underway with the first blast furnace expected to go on stream by September next year.
“Right now we haven’t identified the location of our steel plant but we are here to do the investigation. We are also here because of the Government of Zimbabwe, which is open to developing the economy inviting foreign investors.
“Today (Wednesday), we had a broad meeting with the Minister (Mines and Mining Development) just to understand but have not yet looked at the geological locations we will target. But we have been told that there is the Manhize belt and also the Buchwa belt so it is now our intention to bring in technical teams to go on the ground and do an assessment,” he said.
Yuhang said if established the proposed steel investment will target the local market and export market in Africa.
Asked about the investment climate in Zimbabwe, he said: “The Government has a very open policy for the investment from overseas and that’s why it’s easy and important for the investors to make the decision to invest here because Zimbabwe is also a very safe place.”
