Online Reporter
Thupeyo Muleya
Beitbridge Bureau
Zimbabwe is on the right path to industrialisation with more strategic investors now gaining confidence in the Government’s national development trajectory anchored on the robust re-engagement and engagement policy, President Mnangagwa has said.
The President said the country was attracting more investment in the infrastructure, mining and energy sectors from both new and old strategic partners.
He made the remarks while presiding over the groundbreaking ceremony at the Palm River Energy Project in Beitbridge where the Government, in collaboration with a Chinese mining company, is setting up a US$3.6 billion Energy Metallurgical Special Economic Zone and Industrial Park.
President Mnangagwa said the development of industries and embracing value addition were critical in driving the country’s economic growth.
“This project is a testament to the many successful partnerships between the Government and the private sector, as we work together to ensure the development of our country,” said the President.
“This ceremony follows hard on the heels of other projects which are at various stages of implementation, since the advent of the Second Republic.
“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 favourable investment destination.”
“More companies from our strategic friends and partners, the People’s Republic of China, and indeed from across the world, remain welcome to invest in our country,” he said.
President Mnangagwa added that the mining sector plays a crucial role in fostering economic development.
He said it is a major creator of both direct and indirect employment opportunities, which significantly impact local communities.
Through investments by industry players, he said, mining operations can improve infrastructure such as roads, schools and healthcare facilities.
“In our economy, the sector not only contributes through export revenue and taxes but also supports ancillary businesses of related downstream industries and services, further driving economic activity,” said the President.
The project, located 20km west of Beitbridge town, seeks to introduce the production of stainless steel.
The establishment of the park as an integrated mining and energy hub follows discussions between the chairman of Palm River Energy, Mr Xong Xi Dong and President Mnangagwa.
The first phase of the project, which has been completed, was carried out through a joint venture between the Government, Xintai Resources and Tuli Coal.
Already a 100 MW thermal power generation plant is currently being commissioned which should produce 50 MW by the end of March.
The coal wash plant, with a 160 000 tonnes per year capacity, has been completed as well as the chrome smelting plant.
The park comprises a coking plant that will have an annual capacity of one million tonnes of coke, a ferrochrome smelting plant that will produce 100 000 tonnes of high-carbon ferrochrome and a 1 200MW thermal power plant.
Any surplus electricity will be transmitted to the national grid, while the ferrochrome plant will facilitate the production of special and stainless steel and castings.
“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.
“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.”
The President also commended the Zimbabwe Xintai Resources (Pvt) Co. Ltd, under the investment entity Xinganglian (Shanxi) Holding Group Co. Ltd, for their bold decision to invest US$3,6 billion into the Beitbridge metallurgical and energy hub.
He said it was also important to note that at the heart of the Special Economic Zone lies the integration of energy and metallurgy, which are two critical sectors that have the potential to redefine the industrial landscape.
These integrated systems and processes highlight the drive towards issues of sustainable mining, low greenhouse gas emissions, low waste production and energy self-sufficiency through recycling of the resultant waste.
“I applaud the fact that the project targets the production of 2 million tonnes of chromium-based materials and one million tonne of coke per year,” he said.
“While the growing demand for minerals and metals provides economic opportunities, significant challenges are likely to emerge if the climate-driven clean energy transition is not managed responsibly and sustainably. The planned construction of a 1 200 MW green power and integrated power generation plant by Zimbabwe Xintai Resources (Pvt) Co. Ltd is a welcome initiative,” said President Mnangagwa.
He said some of the ongoing projects by the company as part of its corporate and social responsibility programmes had created employment for the locals, and also provided job training for surrounding communities, as well as offered attachment opportunities for learners in the area.
“I am informed that the company, in conjunction with the local leaders, have drilled boreholes, availing clean water for the local community. Plans to set up a clinic as well as a recreational park, among other social infrastructure projects, should be speeded up,” he added.
The Chinese Embassy in Zimbabwe’s Economic and Commercial Counsellor Mr Huang Mingahai said the country was abundant with economic development opportunities and that the President’s transformative “Zimbabwe is open for business” mantra had created a lot of strategic investment opportunities.
He said a large number of Chinese companies contribute to the country’s economic development with nearly half of them investing in the mining sector.
Mr Huang said China and Zimbabwe have common interests to promote mining cooperation based on mutual benefit and win-win outcomes.
“Chinese enterprises have long prioritised partnerships that align with Zimbabwe’s socio-economic development goals,” he said.
Vice Presidents Constantino Chiwenga and Kembo Mohadi, Cabinet Ministers, senior Government officials and the business community witnessed the ground-breaking ceremony.
