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Patrick Chitumba, [email protected]

ZIMBABWE is expected to benefit greatly from the downstream impact of the US$1,5 billion Dinson Iron and Steel Company (Disco) plant being built in the Manhize area near Mvuma in Midlands, by Chinese global investor, Tsingshan Group, Mines and Mining Development Minister, Soda Zhemu, has said.

President Mnangagwa conducted a tour of the massive industrial plant last Friday and expressed excitement at the speedy progress, which he said was a confirmation of growing investor confidence under the Second Republic.

Besides creating an integrated business ecosystem — with companies such as Afrochine Smelting and Dinson Colliery having already been formed — the steel plant will create jobs and establish a mining town that will become a hub for innovation and economic growth. 

The group has already completed the setting up of Afrochine Smelting (Pvt) Ltd in Selous, Mashonaland West, which is into chrome smelting, and Dinson Colliery (Pvt) Ltd in Hwange, Matabeleland North, which is into coke production.

The company is expected to produce steel pipes, bolts and nuts, rolled tubes, fences, wires and bars of various sizes, among other value-added products. 

The project will begin production this year, with projections indicating a steady increase over subsequent phases, culminating in the production of five million tonnes per year in the final phase.

The successful implementation of these projects has positioned Zimbabwe among the ranks of global steel manufacturing hubs, and is a game changer for the country’s economic performance, said Minister Zhemu, who was part of the President’s delegation.

“Besides harnessing the mineral worth for the benefit of all Zimbabweans, the Disco plant, which is poised to commence production imminently, represents more than just a facility for extraction and processing of minerals,” he said. 

“It is the cornerstone of a larger vision, the creation of a mining town, which will serve as a hub for innovation and economic growth, focusing on beneficiation and value addition.”

Minister Zhemu said the fact that the mega-investment project encompasses the establishment of a Smart City to be called Manhize Town and plans for a science university, demonstrates the huge impact of the investment.

“I would like to report that Disco is on track to achieve significant milestones in the coming months. By the end of April this year, we anticipate the production of pig iron, followed by the production of steel billets and steel bars by October 2024,” he said. 

“These accomplishments will lay the foundation for a robust production capacity with projections indicating a steady increase over subsequent phases.”

Preliminary reports already suggest that the new steel plant will produce 600 000 tonnes of products with plans to scale up to 1,2 million tonnes in the second phase, 3,2 million tonnes in the second phase and ultimately five million tonnes per year in the final phase.

Minister Zhemu said such ambitious targets underscore the potential for Disco to become a major player in the steel market in the world.

“The impact of the project cannot be overstated; preliminary projections indicate net revenue of up to US$10 million in the first phase, with estimates rising to a staggering US$4,25 billion at the fourth phase of production.

“These revenues will not only benefit the company, but will also contribute to the growth and development of our nation as a whole.”

The company paid tribute to the Government for facilitating smooth investment and has committed to creating opportunities for citizens, targeting 3  000 direct jobs in the first phase with the number expected to surplus 10 000 in the fourth phase of production.

“The company will be benefitting families across the nation, empowering individuals and communities alike. I wish to express my gratitude to President Mnangagwa for his unwavering support and leadership in advancing the mining sector.

“The Disco projects stand as a shining example of what can be achieved through collaboration, innovation and dedication to a shared vision. Through partnerships with the private sector, we continue to strive for excellence, as we strive to build a brighter future for the nation,” Minister Zhemu said.

Prominent businessman and president of the Business Economic Empowerment Federation (Beef), Dr Solomon Matsa, said by producing steel locally, the country will be able to reduce its reliance on imports.

“With the coming in of Disco, we will be assured of constant supply of steel and other products. The steel products will also be cheap and that will stimulate the growth of the economy,” he said.

“We commend President Mnangagwa for putting in place a conducive atmosphere that is attracting foreign direct investment,” he said.

Infrastructure development expert, Dr Tinashe Manzungu, said the project was evidence of the Government’s commitment to value addition and beneficiation of minerals.

“As one of the major players in the construction industry, I am very excited about the Manhize project because soon we will be buying steel products locally and I am confident at a competitive price,” he said.