By 
TECHNOMAG recently hosted the Hon Minister of Mines and Mining Development Winston Chitando who enunciated his USD$12 Billion Dollar economy Vision and part of it entailed chrome.A Chinese resources giant has secured exclusive rights to establish an integrated chrome mining and processing operation in Chivhu, giving Zimbabwe fresh impetus to achieve an ambitious plan to attain a US$12 billion mining industry by 2023, TechnoMag has learnt.
In his own words minister Chitando on a one on one interview said
‘..the 12 billion dollar mining industry is underpinned by six major minerals plus other activities…..
He continued ” Then the third mineral which we have is Chrome, Ferochrome mostly which we are targeting that it will contribute a billion USD$ Dollars , there is lots of expansion taking place, the Zimbabwe alloys which is the largest furnace in the country is nearing completion..we have projects by Zimasco..we have projects by AFRONSHIN Jinan all increasing the capacity of Ferochrome production.”
Afrochine Smelting, which has a huge presence on Zimbabwe’s chrome fields, on Friday said the operation would sit on 2 000 hectares of land.
This will comprise a 1,5 kilometre long and 600 metre wide processing plant and mines. Altogether the operation will turn over at least US$1,5 billion per annum.
Afrochine, Zimbabwe’s largest chrome smelting operation, is a subsidiary of Chinese conglomerate Tsingchan Holdings, which accounts for 25% of global steel production. Work on the multi-million-dollar steel and ferrochrome operation is due to start next month, officials said. During a tour of the proposed site of the giant operation, Afrochine said it was determined to roll out a ferrochrome facility three times bigger than the Midlands-based Zimasco, Zimbabwe’s biggest chrome processor.
Mines and Mining Development minister Winston Chitando said government had mobilised key State agencies to work around the clock and ensure a flawless decision-making process for the project to be delivered timeously.
“The idea is to have an area of about 2 000 hectares where a number of things will happen,”Chitando said.
“The first is the carbon steel plant, which is about one-and-half kilometres, Next to it will be a ferrochrome plant which will generate 500 000 tonnes of ferrochrome. Those who know Zimasco, Zimasco does around 150 000 tonnes. So this will be three times the size of Zimasco. Then there is an iron ore mine and iron ore plant. The total turnover of this whole project will be US$1,5 billion, bigger than Zimplats and any other project you can think of. That is really the grant plan,” Chitando added.
Afrochine managing director Benson Xu said discussions were underway to establish a dedicated power supply line and railway line for the project. A dam may also be constructed in the area.
Rail will be crucial for shipping coal from Hwange to the operation.
Last week’s tour which included Mashonaland East Provincial Affairs minister Aplonia Munzverengi, came a few weeks ahead of Tsingchan chairman Xiang Guangda’s planned visit to Zimbabwe for commissioning of the project. Guangda will be part of the commissioning of two furnaces in Selous, while the second programme will be in Hwange to commission the 150 000-tonne coke battery and groundbreaking for another 150 000-tonne plant.
The fourth programme will entail signing of a memorandum of understanding for the full implementation of the Chivhu project.
Munzverengi said the project would transform Chivhu into a vibrant business hub for the province.
“I believe they had already planned for a town in Chivhu area for their employees and other developments,” Munzverengi said.
“What we want to see is for Chivhu to grow. We do not have enough space here for accommodation, for recreational and other facilities. These are the issues that we will now discuss, to see their plan and what else they can do apart from mining and processing,” she added.
Indeed the Government’s plans to grow mining to a U$12 billion industry by 2023 are taking shape with the rolling out of a new multimillion dollar steel and ferro chrome project by Afrochine.
Construction of the country’s single biggest production operation in the country is now underway in Chivhu, 150 kilometers south of the capital city Harare in Mashonaland east province.
The ferrochrome project is scheduled to commence in the second half of this year and it is expected to be the biggest operation of its kind in the country and probably in the SADC region.
Over the weekend, Mines and Mining Development Minister Winston Chitando and Minister of State for Mashonaland East Aplonia Munzverengwi visited the site of the mega project.
The composite projects will entail a carbon steel plant, an iron ore mine and processing plant as well as a ferrochrome production plant with an annual production capacity of 500 000 tonnes.
Speaking to journalists during the site visit, Minister Chitando said the implementation of the project will entail multi-stakeholder engagements as the project cuts across various Government ministries.
For instance, the Ministry of Transport and Infrastructural Development will be roped in for the development of road and rail infrastructure to link the project site with Mvuma.
Similarly, Ministries of Finance and economic Development, Lands, Water, Fisheries and Rural Resettlement, Energy and Power Development, Local Government, National Housing and Public Works will be critical.
“The whole idea here is to have an area of about 2 000 hectares where a number of things will happen.
The first is the carbon steel plant, which is about one and half kilometers, then there is also next to it a ferrochrome plant, which will generate 500 000 tonnes of ferrochrome.
Zimasco produces around 150 000 tonnes. “So this will be three times the size of Zimasco. Then there is an iron ore mine and iron ore plant.
The total turnover of this whole project will be 1,5 billion tonnes, bigger than Zimplats and any other project you can think of, so that’s really the whole grand plan.
“What we now need to do with that plan is to engage all stakeholders,” said Minister Chitando. The mega project also supports the value addition and beneficiation initiatives, which will boost earnings as opposed to exporting raw ferrochrome.
This will also boost employment creation in the country. Afrochine managing director Benson Xu said the 1,5km long and 600m wide processing plant and entire project will create jobs for the community.”
Steel processing players and others in the value chain are expected to come into Chivhu and also grow the industry,” he said.
AfroChine has several other investments in the country such as those in Selous and Hwange where there are four projects with one of them expected to be officially commissioned by President Mnangagwa in July.
It is anticipated that the chairman for Tsingshan (Afrochine’s parent company) will visit the country in July for high level engagements with the President Mnangagwa and will have four programmes.
The first programme will have two furnaces in Selous, while the second in Hwange will entail a 150 000 tonne coke battery first and a further 150 000 tonne in the second phase.
“Thereafter, ground breaking of the Chivhu project will follow. The fourth phase will see the signing of a memorandum of understanding (MOU) for the full implementation of the Chivhu project.
“By then we should have finished all the consultations with the ministries and the offices of the Minister of State.
“So we have got tight timelines to do the necessary consultations so that we also get on the ground, and by mid July there is some work which would have taken place,” said Minister Chitando.
Zimbabwe is home to the second largest chrome ore resources with an estimated 900 million tonnes while global resources are at 7,5 billion tonnes, making chrome a key growth node.
In 2019, the Government indicated plans to process the issuance of claims for chrome smelters to enhance their production and boost their exports contributions to the anticipated US$12 billion revenue.
This came after smelters made a passionate plea to Government for issuance of claims to endnote them to have adequate feed for their plants which were currently not relisting full potential due to insufficient raw material.
The implementation of the project is also expected to transform Chivhu into a vibrant town with enhanced infrastructure such as housing.
“I believe they had already planned for a town in the Chivhu area for their employees and other developments because what we want to see also are for Chivhu to grow because of those companies coming now and who are close to Chivhu.
“Currently, we do not have enough space here for accommodation, for recreational and other facilities. These are the issues that we will now discuss, to see their plan and what else they can do apart from the mining and the processing,” said Minister Munzverengwi.
Afrochine is now the country’s biggest chrome smelter and is a subsidiary of Tsingshan which produces 25 percent of global steel.
Speaking to TechnoMag, Minister Chitando said ”we have projects by AFRONSHIN Jinan all increasing the capacity of Ferochrome production..and we also have the first carbon steel plant in Zimbabwe.The ground breaking ceremony will be in June which will be in Manise in Mvuma which will take 18 months to construct again to contribute to the billion which was earmarked for ferochrome then we are also looking at coal and hydro and it has been a massive success where we are looking at new production coming on stream in the Hwange area .I’m sure those who followed would have seen His Excellency last year visiting the projects.”
Comments