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Tsingshan invests $800 million in Zimbabwe's steel plant

Tsingshan invests $800 million in Zimbabwe's steel plant

A top official of the Chinese nickel producer Tsingshan Holding Group said that it plans to invest $800,000,000 in its steel factory in central Zimbabwe via its unit Dinson Iron and Steel Company. This was revealed during a company media tour held on Friday.

Tsingshan is one of the largest nickel producers in the world and has made substantial investments in Zimbabwe. Tsingshan has also invested in ferrochrome mining, coking coal, and lithium mining in Zimbabwe.

Wilfred Motti, project director at the company, said that the funds will be used to build a new blast furnace to increase the capacity of the facility from 600,000.0 metric ton carbon steel per year to 1.2,000,000 metric ton.

Motsi, however, said that first the company will assess whether the market can support a large increase in production of carbon steel. He added that the funds will be used to construct centering, rolling, and steel plants, as well as a blast-furnace.

"We're ready for the next step, but will carefully examine market conditions before we commit." "We need to make sure that the market will accept this much product," said Motsi.

In the first phase, a 50 megawatt thermal power station was built to reduce Zimbabwe's dependence on its overloaded electricity grid. Management said that the plant would also generate power from furnace gases to cover around 20% of its requirements.

Jenfan Muswere said that the plant will help to reduce the steel import bill for Zimbabwe, which is estimated at around $1 billion per year.

(source: Reuters)