HomeLocal NewsGovt pens $5 billion mining deal

Govt pens $5 billion mining deal

-

BY BLESSED MHLANGA

PRESIDENT Emmerson Mnangagwa’s government has inked what it has termed a major mining investment deal with Chinese company, Tsingshan Holdings.

The deal, signed by Mines minister Winston Chitando and Tsingshan board chairman Chen Shangsong, will, according to government, create 20 000 new jobs.

Tsingshan, which already operates Afrochine Chrome Mine in Selous and employs 1 000 workers, is interested in building a 600 megawatt power station, a coke production plant as well as mine nickel, iron ore and chrome.

Addressing journalists in Harare yesterday, Chitando said the deal, first structured in 2013, will see Tsingshan Holdings investing $2 billion in the first phase and based on feasibility studies currently under way, the investment could hit $5 billion.

“The government of Zimbabwe committed to providing resources to Tsingshan in the form of chrome, nickel, iron ore and coal resources. Since then Tsingshan has concluded an expansion drive of 100 000 tonnes of ferro-chrome at their Selous plant. They have started resources evaluation at the special coal grant in Hwange, have started resource evaluation at a special grant in Mvuma area and there are conclusions in terms of granting nickle concessions, being for the establishment of a two-million tonnage steel facility in the Mvuma area,” he said.

Shangsong said his company has already invested $10 billion in Indonesia and were looking to follow that same investment model in Zimbabwe.

Recent Posts

Stories you will enjoy

Recommended reading