‘Manhize steel plant, a cornerstone of Zimbabwe industrialisation’

THE US$1,5 billion Manhize steel project in the Midlands Province marks the dawn of a new era for the country’s steel industry, which is poised to become a US$5 billion economy in line with Vision 2030, Mines and Mining Development Minister Winston Chitando has said.

The project, one of the largest industrial undertakings in Zimbabwe, is strategically located to harness the rich iron ore deposits in the region. The project is expected to transform the country’s industrial landscape.

The Manhize steel project will not only meet the growing demand for steel within Zimbabwe but also position the country as a major player in the regional and global steel markets.

Addressing journalists yesterday soon after touring the plant, Minister Chitando said the project has the potential to revolutionise the mining and steel sectors, creating thousands of jobs and significantly boosting the national economy.

He said the project represents a cornerstone of the country’s broader strategy to industrialise Zimbabwe and achieve the goals set out in Vision 2030.

“What we have here are the fruits of the 2030 Vision, the fruits of the Zimbabwe is Open for business thrust. From the onset of the Second Republic, His Excellency, President Mnangagwa came up with a vision for Zimbabwe to be an upper middle-income economy by 2030,” he said.

“President Mnangagwa said he would want to see a steel production taking place in the Manhize area. So he engaged with several investors including Tsingshan and a memorandum of understanding was signed for the establishment of this place, and what we have here is the first production of pig iron at Manhize.”

Minister Chitando explained that the project will have four phases of production that will feed into the US$5 billion steel industry economy.

“It means that this first phase of Manhize is 600 000 tonnes per annum. The second phase is another 600 000 tonnes per annum making it 1,2 million tonnes and the third is 2 million tonnes making it 3, 2 million tonnes,” he said.

“The fourth phase is 1,8 million tonnes making it a total of 5 million tonnes. Essentially about a US$5 billion steel industry is coming up from here.”

Minister Chitando said the growth of the steel sector at Manhize is a process.

“This is still the first phase of production that will see several other stages getting to a US$5 billion steel industry, and we also have a functional power station,” he said.

Minister Chitando’s visit follows the commencement of pig iron production last Tuesday. He had the opportunity to see pig iron being produced at the blast furnace.

Pig iron is a product from the blast furnace which will then be used for steel billet making. The billet will be produced in July and in October the company will start producing steel bars.

The giant steel plant is touted to be among Africa’s biggest integrated steelworks, being built by Disco, one of the three local subsidiaries of China’s global stainless steel producer, Tsingshan Holdings Group Limited.

The group also owns Dinson Colliery in Hwange in Matabeleland North and a ferrochrome plant, Afrochine Smelting Limited, in Selous.

Other products that the company will eventually produce include pipes, bolts and nuts, smaller slags, rolled tubes, fences, shafts, wires, and bars, among others.

Preliminary estimates suggest that net revenues are expected to hit US$10 million during the first phase and will rise to US$4,25 billion under phase four of production.

The project’s ripple effects will extend beyond the steel industry. The development of ancillary industries, such as transportation, logistics and energy, will be stimulated, creating additional economic opportunities and supporting infrastructure growth.

The increased availability of locally produced steel will also reduce dependency on imports, improving the country’s trade balance and strengthening its economic resilience.

In terms of employment, Disco expects to directly employ 3 000 workers in the first phase with the figure expected to rise to over 10 000 in the fourth phase of production.

Disco has also signed a memorandum of understanding with the Government to undertake refurbishment and construction of a 1 000km long railway line to provide a dedicated, reliable, uninterrupted and efficient railway line to carry the company’s products for local and export- imports routes through Mozambique.

Before the closure of the Zimbabwe Steel Company (Zisco) in 2008 due to financial challenges, the local industry was accessing raw materials relatively at a lower cost unlike presently when millions of foreign currency is being spent importing steel and related products.

At its peak in the 1990s, Zisco produced over one million tonnes of steel per annum, employing more than 5 000 people directly.

The establishment of the steelworks will see the launch of several infrastructural projects such as road and rail networks, and a dam to provide water for domestic use, irrigation and industrial operations at the plant.

An irrigation project is also on the cards in line with the Second Republic’s thrust of stimulating production across all sectors of the economy.