Zimbabwe and China sign US$1bn MoU to build steel plant

steel factoryThe new steel plant aims to produce up to two million tonnes of steel per annum. (Image source: marcin049/Pixabay)Zimbabwe and China have signed a US$1bn MoU agreement to establish a steel plant that can produce up to two million tonnes of steel per annum

The MoU is signed at the start of a four-day Zimbabwe-China Business Forum that is being attended by a high number of Chinese delegation from Zhejiang Province, led by Che Jun, secretary of Zhejiang Provincial Committee of the Communist Party of China (CPC).

During signing the MoU, Che said that the Chinese delegation visited Zimbabwe to explore business and investment opportunities to help Zimbabwe industrialise its economy.

According to Che, the new agreement is in line with China’s aim to help industrialisation in Zimbabwe to enable the African nation to participate in the Belt and Road Initiative.

Speaking to Xinhua about the deal, Munesu Munodawafa, permanent secretary in the Ministry of Mines and Mining Development, said that it includes the establishment of a 600MW thermal power station to supply power to the steel plant that will be based in the Midland Province of Zimbabwe.

Once completed, this project is expected to create up to 3,000 permanent jobs and produce up to two million tonnes of steel per year, said Munodawafa to the source.

The project will be led by a subsidiary of Chinese firm Tsingshan, which is one of the top five producers of stainless steel in the world.

The feasibility studies for the project will start on 1 July 2018, followed by a roll-out plan.

While speaking during the forum, Zimbabwean President Emmerson Mnangagwa invited Chinese institutions and other international investors to explore the country’s vast investment opportunities.

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