China-based Tsingshan Holding Group has commenced operations at its new $1bn (7.26bn yuan) steel plant in Zimbabwe, Reuters reported, citing a company official.
The facility, operated by Tsingshan’s Dinson Iron and Steel Company, is set to produce 600,000t of carbon steel annually in its initial phase, according to project director Wilfred Motsi.
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The duration of the first phase has not been specified by Motsi.
Motsi was quoted by the news agency as saying: “We have started to produce pig iron, which is a raw material used for the production of steel. By July, that is when we will start to produce the actual carbon steel.”
This development marks a significant milestone for Tsingshan, which has been expanding its investments in Zimbabwe, encompassing ferrochrome, coking coal and lithium mining operations.
In addition to the steel plant, Tsingshan has constructed a 50MW thermal power station at the Dinson site.
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By GlobalDataThe plant is designed to supplement its energy needs by converting gas from its furnace into electricity to fulfil 20% of its power requirements.
Furthermore, Tsingshan intends to construct a solar power facility to mitigate the effects of Zimbabwe’s frequent electricity shortages on its production capabilities.
In November 2022, Zimbabwe and Tsingshan agreed to initiate lithium mining and processing operations in the country.
In addition to the stainless steel facility, the company owns a coking coal operation and a ferrochrome smelter in the country that is said to host some of the globe’s largest hard-rock lithium reserves.
