Tuesday, May 15, 2018

Govt, Sinosteel sign $1bn MoU

The government yesterday signed a memorandum of agreement with Sinosteel Corporation for the development of coalbed methane (CBM) 400 megawatt (MW) plant valued at $1 billion aimed at increasing ferrochrome output in the country.
Officiating at the signing ceremony, President Emmerson Mnangagwa said the establishment of the power plant will assist Zimasco in chrome smelting.
“The agreement being signed today (yesterday) will see the establishment of a 400MW power plant. First phase will see the sinking of two wells in the Shangani grants and establishment of a 12MW pilot power station, while the second phase will see the drilling of more production wells and setting up of a 400MW plant. The electricity generated will be used by Zimasco with the excess being supplied to the national grid,” he said.
The President said the CBM industry presented huge investment potential for the country for the production of electricity, liquefied petroleum gas fertilisers and chemicals.
“As a country, we are endowed with a number of minerals most of which are still to be exploited including CBM. The untapped sector present competitive investment opportunities,” he said.
Zimasco intends to establish three more smelting plants, with two in Zvishavane and one in Kwekwe.
“These project will be implemented at a cost of $1,01 billion. The projects will see at least 4 000 people being directly employed, while over 20 000 jobs will be created indirectly,” Mnangagwa said. Sinosteel president Andong Liu said the project will improve the ferrochrome production to 500 000 metric tonnes per annum by 2028.