Manhize steel plant: Sign of a rising Zim

Harmony Agere

Dinson Iron and Steel Company (Disco)’s multi-billion-dollar steel plant that was officially launched by President Mnangagwa in Manhize, Chirumhanzu, on Thursday, is the clearest sign that Zimbabwe is on the rise.

Valued at US$4 billion, the integrated project — which encompasses mining, processing and beneficiation — straddles Mashonaland East, Midlands and Mashonaland West provinces.

It will create up to 14 000 upstream and downstream jobs, and is expected to initially produce 600 000 tonnes of steel per annum.

Output will progressively increase.

This will cut imports by as much as 90 percent, while also drastically reducing prices of local steel products.

The project will lead to the establishment of a smart city; and the construction of a dam, a railway line, roads, bridges and clinics, among other key infrastructure.

Speaking at the ground-breaking ceremony, President Mnangagwa said the project is another step towards the realisation of a US$12 billion mining industry by 2023.

“The production, usage and consumption of steel products have been widely regarded as an indicator of economic progress and overall sustainable socio-economic progress,” said President Mnangagwa.

“Those who imposed sanctions on us are wondering how we are progressing. We shall progress and rise. Zimbabwe is like a lion and it will continue to roar. The roar of a lion instils fear in those who are against us.”

In 2021, the country spent more than US$400 million on steel imports after another steel giant, Zimbabwe Iron and Steel Company, closed in 2008. As such, Disco’s iron and steel manufacturing plant heralds a new chapter in the country’s journey towards modernisation and industrialisation.

Tsingshan Holdings, Disco’s parent company, is one of the globally renowned companies. It is reputed for producing the world’s best iron and steel products. ZANU PF Secretary for Information, Ambassador Christopher Mutsvangwa, who is also Zimbabwe’s former top envoy to China, said Zimbabwe is likely to emerge as a major player in the steel
sector.

“The effects of sanctions are being lessened by two aspects, which are a more competitive and diverse global capital market and a more creative leadership within Zimbabwe in the form of President Mnangagwa, who is laying out the red carpet to competent companies from across the globe,” he said.

“We are giving them a chance to show their mettle in Zimbabwe, and this is what this project signifies.

“The company that is here today, Tsingshan Holdings, is the number one stainless steel producer in the world. In every three teaspoons being produced in the world today, one is produced by Tsingshan.”

Apart from iron ore, Zimbabwe has large deposits of ferrochrome, coking coal and limestone, which are all important in the production of carbon steel, a product that is in demand across the world.

“All these hills are iron ore, but behind the hills are the Great Dyke, which is ferrochrome. This is the second alloy that is the most important in the making of carbon steel,” said Ambassador Mutsvangwa.

“All these buildings that we see here, all the cars, all the bridges and railway lines need carbon steel.

“So, you can see the upside of Zimbabwe playing an important role in the steel market. This country, in the next 10 years, will join the leagues of Russia, Turkey and Brazil in terms of annual production of steel.”

Because the steel produced by Tsingshan Holdings is of high quality, Ambassador Mutsvangwa added, large carmakers like Toyota will soon flock to Zimbabwe to buy the product.

“God has also been generous to make sure that carbon steel, which is made from coke, is profiting from the proximity of the Hwange coalfields, which have the best coking coal in the world today,” he said.

“The same company has moved to Hwange and it is now building a second set of batteries, and soon they will be building a third set.

“Then, finally, we have limestone from Masvingo and Mberengwa, which, put together with other raw materials I have mentioned, make a vibrant carbon steel industry in Zimbabwe. We will definitely have a global footprint in the manufacturing of carbon steel.”

Disco’s plant is 40 percent complete, but the company is already having an impact on nearby communities.

“So far, we employ over 800 employees, a bulk of whom are drawn from the community, and we will continue to bring in more employees depending on the demands of the project,” said Disco project manager Mr Wilfred Motsi.