Gvt grants mining lease to Disco to Chinese Steel Giant

Review&Mail Writer

The Government has officially handed over a significant mining lease to Chinese steel giant, Disco. It is currently developing a US$15 billion steel plant in Manhidze in Mvuma.

The decision, which grants the foreign company access to valuable mineral resources, has attracted attention and criticism from various quarters.

Disco, a prominent player in the global steel industry, is a unit of China biggest stainless-steel producer, Tsingshan Holdings Group Limited.

The project is touted as Africa’s largest integrated steel manufacturing plant.

Speaking at a handover ceremony in Harare last week Mines and Mining Developmemt Minister Winston Chitando commended the investor for going ahead with the setting up of the project, which is Africa’s largest integrated steel plant, even though the title deed had not been issued.

“I must recognise Disco for supporting the Government in terms of its investment programmes but also for having faith in the Government.

“Many companies will say we don’t invest until we get our mining lease. But when Disco got assurance from His Excellency (President Mnangagwa) that the mining lease will be coming, they did not wait for the title deed.

“They actually proceeded to start investing millions of US dollars without having the mining lease in their hands. We would like to acknowledge Dinson and thank them for their faith in the Government of Zimbabwe.

The lease provides Disco with exclusive rights to extract minerals from a vast area known for its abundant resources, including iron ore and other valuable minerals crucial to the steel production process.

Minister Chitando, praised the steel project as a prime illustration of a mining and comprehensive value-addition investment, characterizing it as an ecosystem that aligns seamlessly with National Development Strategy 1 (NDS 1).

“The range of minerals involved in the project, which encompasses the value chain from coal to coke, iron ore, limestone, and ferrochrome.”

He described it as a consolidated value addition program that perfectly embodies the objectives outlined in NDS 1.

Moreover, the project aligns with the vision of His Excellency, the President, who seeks to achieve a robust upper middle-income economy by 2030, along with the ambitious target of reaching a $12 billion milestone.

 

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