Oliver Kazunga-Senior Reporter
A US$500 million mining and energy investment is taking shape in Mberengwa, with FS Mining planning a ferrochrome smelter and thermal power project expected to deepen local beneficiation and create thousands of jobs.
The company, which is registered in South Africa, is developing a chrome mine in Mberengwa, Midlands Province.
In a recent interview, FS Mining director Dr Precious Mabuza said the company was advancing plans for a US$100 million smelter and a US$400 million thermal power project, in what could become a major boost to Zimbabwe’s mineral beneficiation and industrialisation drive.
FS Mining, which at the moment is setting up a US$15 million wash plant, is progressing through the technical, engineering and financing stages of the planned smelter and thermal power plant, with construction timelines dependent on completion of feasibility work and the necessary approvals.
The development is being rolled out in phases, beginning with a smelting facility and a 25-megawatt thermal power station under the first phase to support the company’s mining, processing and smelting operations.
The longer-term vision is to expand the power-generation project to 320MW, potentially creating additional capacity to support industrial activity around the company’s operations.
“As FS Mining, what we have done is our first phase of building the wash plant—we are already in the process of starting to build a power station and a smelter.
“So, our first phase with a smelter will be 16,5 MVA of the sintering plant capacity and then the power station it’s going to be 25MW with the hope that we would also want to see how we can do the rural electrification in the communities around us as well.
“Up to when we would have finished all the phases, we are looking to would have established a 320MW power station. In terms of the investment, for the smelter, it’s going to be a bit higher because on the smelter itself, we are looking at US$100 million and US$400 million for the thermal power station,” she said.
Eventual production volumes, at the chrome mine would be determined once the final furnace configuration, engineering design and operating parameters have been concluded.
Dr Mabuza said her organisation wanted to ensure Zimbabwe derived greater economic value from its mineral resources before they were exported.
Recently, the Government banned the export of raw minerals including chrome to force local beneficiation and value addition.
The FS Mining project, therefore, dovetails with Second Republic’s broader industrialisation and mineral beneficiation agenda aimed at ensuring the country derives maximum value from its vast mineral resource endowment.
“We would love minerals to leave Zimbabwe beneficiated so that the people of Zimbabwe benefit from this because it brings employment. At the mine, we currently employ 100 people and going forward we are looking at 1 500 people being employed at the smelter and the power station, then the other numbers across the value chain, we are looking at 5 000 people,” she said.
The employment impact would extend beyond direct positions at the smelter and power plant into mining, logistics, services, construction and other supporting activities.
The planned thermal power station is central to FS Mining’s expansion strategy, providing reliable baseload electricity for the smelter and associated mining and processing operations.
FS Mining is also looking at ways of extending the benefits of the energy investment beyond its industrial operations.
Dr Mabuza said the company hoped to explore rural electrification for communities surrounding its operations, potentially linking the mining investment to wider local development.
The investment is expected to give impetus to rural industrialisation, employment creation and community development in line with the Government’s devolution and decentralisation agenda.
It is also set to enhance energy security through the proposed 320MW thermal power plant, which is envisaged to support not only smelting operations but also rural electrification for communities around Mberengwa.
Source: US$500m mining, energy investment takes shape – herald
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