Environmental concerns sink Cowdray Park cement factory proposal

A Chinese company, Labenmon Investments which seeks to establish a cement grinding factory in Cowdray Park, Bulawayo with an annual output of 900 000 tonnes, had its application rejected by Bulawayo City Council, a council report shows.

Instead council suggested that an alternative place could be Umguza District, which turned out to be a private area outside council boundaries, hence the suggestion to engage Umguza Rural District Council. In rejecting the application, the local authority cited environmental concerns as the main reason for refusal noting that despite the substantial investment potential, Labenmon Investments failed to assure that the facility would not pose a significant risk of environmental pollution, indicating it was not entirely safe.

Town Clerk, Mr Christopher Dube had told the General Purpose Committee that he received correspondence from Labenmon Investments (PVT) LTD inviting council officials to an observational visit in Mozambique on a date to be advised. The General Purpose Committee is composed of council committee chairpersons including the mayor and deputy mayor.

Labenmon Investments, a Chinese mining company, had applied for an industrial stand in Cowdray Park to establish a cement mixing facility, he said. He said to provide the Council with a better understanding of their operations, Labenmon had extended an invitation to Council officials to visit their cement plant in Mozambique.

“The Council officials’ observational visit to the cement plant in Mozambique would provide an invaluable opportunity for them to assess the facility’s operations first hand,” said Mr Dube. Mr Dube said by observing the equipment and processes used at the plant, the Council would be able to ascertain if the equipment being used was indeed modern.

Added to that council representatives would also gain direct evidence that the facility would not significantly contribute to environmental pollution and ensure that their operations adhered to environmental standards. “Therefore this on-site evaluation would allow Council the privilege of making a more informed decision in considering the company’s application, ensuring the best outcomes for both the local community and the environment,” said Mr Dube.

The organisers would cater for all travel and subsistence costs whereas Council expenditure would only be limited to incidental allowances. However, during the discussion, city mayor, Councillor David Coltart inquired about the motivation behind selecting a Chinese company over local companies. “He noted that PPC Cement, which had its headquarters in the city and specialised in cement mixing, could have carried out the project.

While expressing full support for investment initiatives, wanted to know the reason why PPC had not been selected,” reads part of the report. Clr Coltart further raised concern over cement mixing business being conducted close to residential areas. “Furthermore, the Mayor requested information on the alternative location proposed by the Council after the rejection of Cowdray Park, as the selected company had stated that their facility would not significantly contribute to environmental pollution, implying that it was not 100 percent safe.”

The Chamber Secretary, Mrs Sikhangele Zhou, advised the committee that the “rejection had nothing to do with the size of their investment.” Mr Dube also said the council was not protecting any business and that business companies should be allowed to compete with each other. “He advised the Committee that Council had given the company a place in Cowdray Park as they thought that the company would establish a smelting plant.

However, since they wanted to establish a cement plant, the Council had realised that the place was too close to residential areas and this would cause pollution.” Early this year, Labenmon Investments and West International Holdings Limited, a subsidiary of China West Cement Limited, a Hong Kong listed company signed a U$1 billion investment in the construction of a cement plant in Magunje near Karoi with an annual output of 2,7 million tonnes and a cement grinding station in Bulawayo.

The projects, including a 100 megawatts power plant, are earmarked to be completed within two years. About 5 000 jobs are set to be created as the extra capacity will help ensure that Zimbabwe can continue to meet the rising demand as construction increases.