The Sunday Mail
Winston Chitando
President Mnangagwa was in Hwange last week on a two-day working visit of coal and coking projects. The ventures are primed to spur an industrial revolution for Zimbabwe in line with Government’s quest to achieve upper middle-income status by 2030.
They are also likely to contribute to the development of the mining sector into a US$12 billion industry by 2023.
As the President noted during his visit, the projects will culminate in Zimbabwe moving from the current state of importing power to being a net exporter by 2023, as different private sector players implement power generation projects that will feed into the national grid.
As the President learnt during the tour, coking coal production is also poised for a major boost and will go a long way in feeding into the local steel making industry and the export market. Crucially, the projects also feed into Government’s devolution strategy of growing the gross domestic product (GDP) of the country’s provinces.
During the tour, Government also took the opportunity to reiterate the “use it or lose it” principle, which is aimed at weeding out opportunists that hold on to mineral-rich title for speculative purposes while local communities continue to wallow in poverty.
The President was accompanied on the tour by several Cabinet ministers, among them Mines and Mining Development Minister Winston Chitando, who spoke to our business reporter Ishemunyoro Chingwere at the end of the tour and gave a summary of the President’s historic working visit to these projects.
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WE have come to the end of a two-day visit of coal and coke projects in the Hwange area by His Excellency President Mnangagwa.
The first leg (on Thursday) was at Localised Western Areas, which is a new mine that will be feeding thermal coal to ZESA (Zimbabwe Electricity Supply Authority).
They are set to construct a 600MW power station and produce coking coal, which they will supply to various coke works in Hwange.
His Excellency also visited South Mining, a new coke works which is in two phases.
The first phase is what the President officially commissioned, which is a 150 000 tonnes per annum coke battery.
They will be undertaking a second phase of another 150 000 tonnes coke battery.
Thereafter, His Excellency visited Jinan, which is a very interesting model in the sense that they have got a mine they are opening and on that mine they are putting up a 600MW power station.
Jinan is also then constructing a 300 000-tonne coke battery which His Excellency visited.
Beyond that, they have constructed smelters in Gweru for the production of ferrochrome, ferrosilicon chrome and low-carbon ferrochrome. They are also putting a lime plant in Bulawayo and also putting up an explosive factory in Lalapanzi.
It is an integrated business model.
His Excellency also went to Chaba Mine, which is one of the two open pit operations of Hwange Colliery Company.
Today (Friday) the day started with a visit to Dinson Colliery, a company owned by Tsingshan, and if you recall in 2018, His Excellency met the shareholders of Tsingshan in China.
That meeting culminated in the signing of an agreement for the establishment of a stainless steel plant. For stainless steel, the major inputs are ferrochrome, coke and iron ore.
What has since happened in terms of that agreement is that Afrochine in Selous have put in additional furnaces — they now have five.
They then started construction of a 300 000-tonne coke battery, which His Excellency visited today, to prepare the groundwork for the construction of a carbon steel plant which starts next year.
Things are moving.
From there, His Excellency visited ZZCC.
ZZCC have a coke battery where they are producing 120 000 tonnes of coke.
What has happened is that ZZCC have been awarded a coal concession on which they will open a new mine and, secondly, construct a 180 000-tonne coke battery.
Thereafter His Excellency went to Zambezi Gas. They are expanding production but they have also been granted a licence to construct a 750MW power station.
The plant will be complete by 2025, but the initial 150MW will be ready by 2023.
From there, His Excellency visited Makomo, a key supplier of industrial coking coal to various markets.
Makomo have been awarded a significant contract by ZESA to supply coal to (Hwange) number 7 and 8, and they have come up with a huge investment to increase output.
The last visit was at ZZEE.
The coal concession, which has been granted to ZZEE, will supply here (at ZZEE) where a 450MW power station is being constructed.
The coking coal will feed into the 120 000-tonne coke battery at ZZCC and to another coke battery which will be constructed.
Fundamentally, I must highlight that the coal and hydrocarbon sector had been tasked to achieve US$1 billion in terms of the 2023 US$12 billion milestone.
Indications are that it will be the first sector not only to achieve but to exceed the US$1 billion; it is a very good success story.
The second issue which I would like to emphasise is that this visit by His Excellency has now clearly demonstrated that Zimbabwe is well on course to move from being an importer of power, but a net exporter of power.
The projects which His Excellency visited will eventually produce in excess of 3 000MW of power.
Winston Chitando is the Mines and Mining Development Minister.
