The Sunday Mail
Senior Business Reporter
THE proposed US$13 billion mining-to-energy industrial park project in Mashonaland West Province by two Chinese investors is expected to boost economic growth through mineral beneficiation and promotion of green energy.
The Government recently signed an agreement with Chinese investors Eagle Canyon International Group Limited and Pacific Goal Investment to establish the first-of-its-kind mine-to-energy industrial park project in Darwendale.
The park, which will sit on 5 000 hectares, is expected to become operational by 2024.
The proposed investment, which will be rolled out in phases, involves the construction of two 300MW power stations, a coking plant, lithium salt plant, graphite processing plant, nickel chromium alloy smelter and nickel sulphate plant.
It is envisaged the project will mark the inception of the lithium-ion battery value chain in Zimbabwe, which will put the country in good stead to produce lithium-ion batteries.
The Zimbabwe Institute of Foundries chief operations officer Mr Dosman Mangisi said the mining-to-energy industrial park was likely to make the country competitive.
“So far, the hindrance in Zimbabwe is energy to realise the full beneficiation of all strategic minerals . . . looking at copper, iron, nickel, lithium, among others.
“These minerals can stimulate the metal industry and put Zimbabwe on the globe as a metal hub,” he said.
“Currently, Zimbabwe is importing steel, with over 70 percent of steel and its products being imported, and local metal casting companies are supplying about 60 percent to the mining industry.
“Having the mining-to-energy industrial park will also make Zimbabwe competitive in terms of prices, as metals that we will be selling already beneficiated would be benchmarked and competitive on price, and attract quite a number of exports.”
The Chamber of Mines of Zimbabwe chief executive officer Mr Isaac Kwesu said the chamber commends the Government for consummating a memorandum of understanding with investors for the development of the proposed mining-to- energy industrial park.
“We understand that this investment will see the extension and deepening of lithium, nickel, graphite, chrome and coal value chains. We support initiatives aimed at fulfilling the country’s local beneficiation of the minerals produced in the country.
“The proposed development of two 300MW power stations as part of this investment initiative will contribute significantly to electricity supply reliability, greatly desired by the mining industry and the economy at large.
“We believe the project will contribute significantly to employment creation, export revenues, fiscal revenues and spur the development of other related industries,” he said, adding that such outcomes were likely to impact positively on the state of the economy and, ultimately, on the standard of living of Zimbabweans.
Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development Mr Edmund Mkaratigwa hailed the Government for securing investors for a project of such magnitude.
The proposed investment, he said, will drive the Government’s thrust on value addition and beneficiation of minerals, as well as strengthen the role mineral value chains play in the national industrialisation agenda.
“It’s a very good project and its socio-economic impact will be great. Firstly, we are looking at the extraction of more than one mineral that will be processed and beneficiated, which means we are going to have a value chain. What that does is actually increase the value of the final product, thereby increase potential revenue generation,” he said.
“When you collect tax on high value, it means you are collecting more; not only that, but also boosting the Gross Domestic Product through exports.”
The Government is targeting a US$12 billion mining economy by next year.
Closed mines are being resuscitated, new mines are opening while existing projects are expanding.
The mining sector generated US$5,2 billion last year and is forecast to gross US$8 billion this year.
Zimbabwe National Chamber of Commerce past president Mr Trust Chikohora said: “Such a project would obviously help push towards Vision 2030. Mining is critical because it is a major foreign currency earner, and jobs and infrastructure will be created in and around the mine.
“They are also going to be looking at energy generation for their plant and also into the grid; that can also help. But it is important to also point out that when we craft such deals, it is important to make sure proper due diligence is done to ensure such a big deal would give maximum benefits to the economy.”
Mines and Mining Development Minister Winston Chitando said the investment is key to attaining Vision 2030.
“The nickel from Guruve and lithium from other sources in Zimbabwe will also contribute to producing a nickel-chromium plant,” said Minister Chitando.
In his address at the signing ceremony, Eagle Canyon International Group Holding Limited director Mr Lionel Mhlanga said the proposed project is expected to revolutionise the mining and energy sectors of Zimbabwe by ensuring value addition for all minerals in the
country.
“The World Bank has forecast a 500 percent increase in demand for minerals and metals needed to deploy wind, solar or geothermal power by the year 2050,” he said.
“The realisation of a low carbon future will spur massive demand for several key minerals and metals to manufacture cleaner energy technologies, and Zimbabwe is endowed with most, if not all, of the minerals needed in this clean energy drive.”
Construction of raw material feeder plants for the industrial park, he said, was already underway across the country, with some of the products expected to be churned out as early as April next year.
“We are expecting employment of at least 4 900 locals in the first year of the project, while at least 40 percent of the construction will be contracted and subcontracted locally,” added Mr Mhlanga.
