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Chinese chrome smelting company, Afrochine is courting external financiers to raise $100 million required for the setting up of more smelters at its Selous chrome smelting plant.
The new smelters are part of phase two of the company’s chrome smelting projects in the country.
Last year Afrochine commissioned its US$25 million smelting plant as phase one and the completion of the phase two project will see the company extending its tentacles in the Zimbabwean chrome smelting industry.
In an interview with the Herald Business yesterday, Afrochine representative in Zimbabwe Mr Benson Xu Kemin said phase two is still on hold due to the wait for funding.
“At present, phase two project is awaiting funding and once the capital required is unlocked, then definitely we are starting by next year. This is in line with our hope of becoming the biggest chrome player in the country,” said Mr Keman.
He said Afrochine is still awaiting Government approval to start refurbishments and upgrading of the country’s dilapidated rail network. Afrochine private limited is a subsidiary of Tsingshan Iron and Steel Group of China, the second largest stainless steel producer in that country.
Zimbabwe is failing to raise about $4 billion required for the complete revamp of the rail network and Afrochine is willing to take part in the project.
“We understand the current state of the railway system and a lot of finance is required. As part of our long term plans we want to invest in the rail network upgrade. Once we complete our engagements with Government then rail upgrade will start,” Mr Kemin said
“As of now there has not been any movement on the side of Government pertaining our proposal to venture into refurbishments of road network.”
The company is rolling projects that are aligned with the tenets of the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset) for instance infrastructure development and value addition.
Speaking at a Zim-Asset seminar this year Mr Kemin said no country can develop without a sound rail network and he also pointed out the insufficient power supply as another challenge going to affect the company’s operations.
Afrochine, however plans setting up a multi-million dollar electricity generation plant set to alleviate power deficit likely to affect the operations of the stand steel plant.
The electricity generating plant will have the capacity to generate 600 to 1 000 megawatts.
This goes in tandem with the company’s plans to set up a stand steel plant that requires a lot of power.
Online Reporter