Tsingshan Ups the Ante in Zimbabwe
On 29 November 2022 at the State House in Harare, a ceremony took place which saw the signing of an enhanced memorandum of understanding (MoU) between the Tsingshan Group and the Government of Zimbabwe to enhance partnership in the mining sector. The plan centers around Manhize metallurgical complex.
Winston Chitando, Minister of Mines and Mining Development and CHEN Shangsong, Chairman of Dinson — Tsingshan’s local subsidiary — signed the MoU. Zimbabwean President Emmerson Mnangagwa, Vice-President Constantino Chiwenga, ZANU-PF Spokesperson Christopher Mustvangwa, as well as Tsingshan Group Chairman XIANG Guangda were also present and witnessed the signing.
It is worth recalling that the original MoU was signed in June 2018, after Tsingshan Group Chairman XIANG Guangda visited Zimbabwe and met with President Emmerson Mnangagwa in April 2018. Originally, the agreement covered the setting up of Dinson Colliery and Manhize Iron Ore mine, including local value addition (#LVA).
The enhanced MoU upgrades the partnership as follows:
- Increase production of carbon steel to 5 million tonnes annually
- Increase production of coke to 5 million tonnes annually from 280,000 tonnes currently
- Increase production of ferrochrome to 500,000 tonnes annually from 150,000 tonnes currently
In addition, Tsingshan will add copper and cement production. In line with the trend to #EV, Tsingshan will also venture into #Lithium mining and processing. The construction of a power plant and a railway line to the port are also part of the new MoU.
“In view of the importance of rail transport to the modernisation and industrialisation of our economy, the proposed refurbishment and expansion of the country’s railway network system as envisaged under the MoU is a welcome development.”
Zimbabwe President Mnangagwa
Tsingshan pledged to bring in more than USD one billion of Foreign Direct Investment (#FDI) into Zimbabwe. Tsingshan underscored that the increase in investment and expansion of operations is a sign of their confidence in the Zimbabwean government and economy.