TINASHE MAKICHI
Government has allocated chrome claims previously owned by Zim Alloys to Chinese firm, SQNeed Chrome Zimbabwe as authorities push for the beneficiation of the metal.
The company is linked to Chinese steel giant Tsingshan Iron–currently spearheading the construction of a billion dollar stainless steel plant in the Midlands Province–and Steel Group of China. The parcelling out of the claims to the Chinese firm comes after Zim Alloys ceded about 50 percent of its chrome claims to government through a 2015 directive.
Government has, since 2015, pressed the two big chrome miners to release some ground but ZimAlloys has been apparently dragging its feet. ZimAlloys had a total of 39 175 hectares and jointly controlled 80 percent of Zimbabwe’s chrome ore claims, mostly found along the Great Dyke, together with Zimasco.
Business Times heard this week that SQNeed Chrome Zimbabwe was given claims around the Lalapanzi area. The Chinese firm is a sister company to Selous-based Afrochine.
Mines and Mining Development Permanent Secretary Onismo Moyo confirmed to Business Times that part of the ZimAlloys claims were given to the Chinese firm to provide feedstock to the proposed stainless steel plant.
“Yes, remember those are the same people who are going to set up a steel plant in Zimbabwe. So as part of the proposal they requested for chrome claims that will provide feed to the steel plant,” Moyo said. “ This company has a relationship with Afrochine who are spearheading the construction of the steel plant.”
Tsingshan Iron and Steel Group of China has since commenced a feasibility study to ascertain the possibility of setting up a stainless steel manufacturing plant in the Midlands Province. Government last year sealed a deal with one of the world’s biggest stainless steel manufacturers which will lead to the construction of a US$3 billion stainless steel manufacturing plant. Once the setup is complete, the plant is expected to rake in US$$2 billion in revenue annually.
Tsingshan Iron and Steel Group, which is China’s second largest stainless steel producer, is already operational in Zimbabwe through its ferrochrome smelting subsidiary, Afrochine based in Selous, Mashonaland West province. The plant requires 600 000 tonnes of ferrochrome against current capacity of about 300 000 tonnes.
The stainless steel plant will also require an input of about 200 000 tonnes of nickel, presenting a massive opportunity for the local mining industry. The plant, which is expected to produce 2 million tonnes of stainless steel, will quickly translate to about US$2.5 billion in revenue generation. The deal will also see the construction of a 500 megawatt power plant that is expected to benefit industry.
In addition, government has also awarded the Chinese stainless steel giant a special grant to iron ore mining rights in an area around Chivhu. The stainless steel plant requires significant amount of key feed stock minerals namely iron ore, nickel and coal.
