Chronicle Editor
Nqobile Bhebhe in Beitbridge
PRESIDENT Mnangagwa yesterday led the ground-breaking ceremony for the massive US$3,6 billion Palm River Energy Metallurgical Special Economic Zone project in Beitbridge District, Matabeleland South, in another bold milestone towards transforming Zimbabwe’s economy into an upper middle-income status by 2030.
The mega-investment by Chinese investors is a multi-faceted project encompassing mining, power generation, coke production, and steel manufacturing.
Once fully operational, it will produce stainless steel in phases and is expected to create over 2 000 jobs, significantly addressing employment challenges in the country.
Currently, over 300 Chinese and 800 Zimbabwean workers — totalling over 1 000 personnel — are already engaged in project implementation, which is at an advanced stage.
Covering 5 163 hectares, the project will be constructed in five phases over 12 years.
The first phase, with a construction period of two years, involves a US$237 million investment and will focus on producing 200 000 tons of ferrochrome annually while supporting coal mining, coking, infrastructure development, and other related projects.
Plans are also underway for the construction of a 1 200MW green power and integrated power generation plant by Zimbabwe Xintai Resources (Pvt) Ltd.
The new industrial park is expected to contribute more to the province’s economy, Matabeleland region and the country at large through expansion and unlocking of new opportunities for employment, technological advancement, and social development.
In his keynote address, President Mnangagwa said the investment breakthrough was a direct result of the Second Republic’s engagement and re-engagement policy, which continues to position Zimbabwe as a favourable investment destination through the normalisation of relations with the global community.
He commended Zimbabwe Xintai Resources (Pvt) Ltd, under the investment entity Xinganglian (Shanxi) Holding Group Co. Ltd, for its “bold decision to invest US$3,6 billion into this metallurgical and energy hub”.
“In this regard, it is my expectation that the Palm River Energy Metallurgical Special Economic Zone project will play its part as a critical block for our nation’s industrialisation and modernisation,” said President Mnangagwa.
“We look forward to this project helping to drive our national economy forward and unlocking unprecedented opportunities for employment, technological progress, and social development as we march towards the attainment of Vision 2030.”
He described the initiative as a “model of excellence,” a beacon of innovation, and a driver of prosperity for future generations.
The President reaffirmed his Government’s commitment to fostering a conducive environment for investors and emphasised the project’s role in the country’s industrialisation and modernisation agenda.
“This ceremony follows hard on the heels of other projects, which are at various stages of implementation since the advent of the Second Republic,” said President Mnangagwa.
“The progress we are seeing here is also a positive result of my Government’s engagement and re-engagement policy that has led to growing confidence in Zimbabwe as a favorable investment destination.”
As Zimbabwe marches towards 2030, the President invited more companies to grab opportunities offered by Zimbabwe, particularly those from strategic allies such as China and beyond.
He highlighted the country’s commitment to achieving its ambitious targets by 2030 through increased foreign direct investment as a testimony that indeed, “Zimbabwe is Open for Business”.
At the heart of this Special Economic Zone is the integration of energy and metallurgy, two sectors that could redefine Zimbabwe’s industrial landscape.
The project prioritises sustainable mining practices, including low greenhouse gas emissions, waste reduction, and energy self-sufficiency through waste recycling.
“I applaud the fact that the project targets the production of two million tons of chromium-based materials and one million tons of coke per year,” said President Mnangagwa.
Amid the rising demand for minerals and the economic opportunities they represent, he cautioned against potential challenges if the transition to clean energy is not managed responsibly.
The President noted that the first phase of the project has already made significant progress, with a 100MW thermal power generation plant currently being commissioned.
Of this, 50 MW is expected to be operational by the end of March. Additionally, the coal wash plant, with a 160 000-ton annual capacity, and the chrome smelting plant have been completed.
He highlighted the importance of technological advancements in mining, urging collaboration between the mining sector, academic institutions, and the Government to support and sustain mining education.
“The partnership between Shanxi Engineering Vocational College and Harare Polytechnic to carry out the College-Enterprise project will go a long way towards upskilling our young people in this sector,” said President Mnangagwa.
“The project will provide scholarships for students to study in China in the fields of metallurgy, mechanical engineering and electrical engineering.
“Under the programme, there is scope for the establishment of a Metallurgical Centre of Excellence, with a focus on value addition and beneficiation.”
President Mnangagwa further encouraged institutions such as the Zimbabwe School of Mines to establish similar partnerships to advance the industry.
Turning to mineral beneficiation, he said Zimbabwe was prioritising investments in exploration and value addition to maximise economic benefits.
“In line with the Africa Mining Vision, mineral value addition ensures that our great motherland, Zimbabwe, derives maximum benefits from our abundant natural resource endowments,” said the President.
He called on all stakeholders to cooperate to ensure the project’s success, urging engineers and workers to recognise their role in shaping Zimbabwe’s industrial future.
“Let us work hand in hand to ensure that the Palm River Energy Metallurgical Special Economic Zone not only succeeds but exceeds expectations. To the engineers and all who will work on this project to bring it to life, know that what you are building is a legacy,” said President Mnangagwa.
“My Government is fully in support of this initiative and will move with you for shared success. Let it be a model of excellence, a beacon of innovation, and a driver of prosperity for generations to come.”
Government declared Beitbridge a Special Economic Zone in 2018 as part of broader strategies to attract more investment to the economy. The SEZ model is designed to boost foreign direct investment, enhance local business competitiveness, and drive economic growth.
Vice Presidents Dr Constantino Chiwenga and Kembo Mohadi, Minister of State for Matabeleland South Provincial Affairs and Devolution Dr Evelyn Ndlovu, Finance Minister Professor Mthuli Ncube, Mines Minister Winston Chitando, Chinese embassy officials, mining sector players, and Beitbridge community leaders also attended the event.
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