Zimbabwe says Tsingshan of China plans iron ore mine, steel plant to begin from May

A fluorite and limestone production plant will also soon be set up, Information Minister Monica Mutsvangwa said.

Tsingshan Holdings Group Co., the world’s top producer of nickel and stainless steel, will start construction on an iron ore mine and a carbon steel plant in Zimbabwe in May, according to a senior government official.

A fluorite and limestone production plant will also soon be set up, Information Minister Monica Mutsvangwa said in an emailed statement following a cabinet meeting.

Afrochine, the local unit of Tsingshan, initially signed a $1 billion agreement in June 2018 to build the plant with capacity for two million tons of steel annually. It currently produces ferrochrome after building furnaces in 2020 and plans to construct additional furnaces in May.

The southern African nation is seeking mining ventures to help boost revenue from the sector to $12 billion by 2023. The rise in prices of commodities such as gold, platinum and copper produced in the country has helped bolster its finances.

The government previously said Tsingshan would also build a power station and had been given a lithium concession.

China has over the past few years emerged as a major foreign investor in Zimbabwe, with its firms mostly involved in mining of gold, chrome and diamonds and building power stations.

Zimbabwe has set out an ambitious drive to increase revenue from mining to $12 billion by 2023 by increasing output of gold, platinum and diamonds, among other minerals. Last year, minerals earned the country $2.4 billion in exports.