Connect with us

Foreign

Zimbabwe signs multibillion-dollar mining deal with Chinese company

Published

on

Zimbabwe signs multibillion-dollar mining deal with Chinese company

Company

The deal, whose initial phase will cost 2 billion U.S. dollars before rising to between 5 and 10 billion dollars, may also involve lithium mining, establishment of a power plant and construction of a railway line to the port.

The two countries initially signed the deal in 2018 at a cost of 1 billion dollars but on Tuesday, the two countries signed the new agreement expanding the scope of the original MOU.

Mines Minister Winston Chitando signed on behalf of the Zimbabwe government while Chen Shangsong signed on behalf of Tsingshan.

Chitando said the deal, to be implemented over years, will see the establishment of a 2 million tonnes steel plant in Mvuma, with the initial phase producing 1 million tonnes of carbon steel and the second phase producing another 1 million tonnes of stainless steel.

“The initial MOU signed in 2018 was targeting to produce 550,000 tonnes of ferrochrome for consumption in Mvuma only but we are now targeting 1 million tones for consumption in Mvuma and for export,’’ Chitando said.

The initial deal targeted production of coke specifically for stainless steel operations in Mvuma but now this will be for Mvuma consumption and exports as well.

There will be conversion of coking coal to coke, construction of power plant and provision of a lithium concession for mining and value addition by Tsingshan, Chitando said.

“The MOU will also include Tshingshan looking into the possibility of working with government and other institutions in exploring construction of a railway line to the port,’’ Chitando said.

Chen said the project will create about 30,000 jobs, adding his company was more confident to invest in Zimbabwe due to the support it has received from the Zimbabwe government since 2013.

Load more

Contact US: editor[at]nnn.com.ng, nnnnews247[at]gmail.com

Recent Posts

NNN News Nigeria: NNN is an online Nigeria news portal that publishes breaking news in politics, business, entertainment, sport, security, features, opinion, environment, education, technology, and the world news at large. NNN publishes only news that is factual, credible, verifiable, authoritative and investigative. NNN is a media subscriber of the News Agency of Nigeria. NNN is a unique media organization that is founded in the spirit of Article 19 of the Universal Declaration of Human Rights, comprising of ordinary people with an overriding commitment to seeking the truth and publishing it without fear or favor. Contact: editor[at]nnn.com.ng

© 2014 - 2019 NNN News Nigeria. All Rights Reserved.