Massive progress at Manhize Iron and Steel project

Source: The Chronicle – Breaking news

 

Disco sinter plant in Manhize

Patrick Chitumba, patrick.chitumba@chronicle.co.zw

MASSIVE progress is being made at the US$1,5 billion Dinson Iron and Steel Company (Disco) plant in Manhize, Chirumhanzu District in the Midlands Province as the investor pushed to commence production by the end of this year.

The laying of the power line linking Sherwood in Kwekwe and the new giant factory is underway with preliminary wayleave clearance and excavation works complete. The resettlement of two families that have been affected by the laying of the power line is in process with one home almost complete.

The completion of the blast furnace superstructure, now at 80 percent, and the availability of power are critical steps before commencement of production at least by the end of the year or early next year, the company has said.

Disco public relations manager, Mr Joseph Shoko, said a lot of progress is taking place at the plant, with the construction of the sinter plant, which is the first stage of processing raw materials, almost complete.

“The sinter plant construction is almost complete. The sinter plant turns iron ore into sinter, which is the optimal product for the blast furnace,” he said. 

“Sinter is made by burning a mix of iron ore powder, fluxes and recycled substances from the steel plant to create an open-grained, consistent substance. 

“The sinter is then crushed, cooled and screened for dust. This goes by conveyor belt to the blast furnace,” said Mr Shoko.

He said construction of the blast furnace is at 80 percent complete

“With regards to the blast furnace, we are over 80 percent. Production should be on at the end of the year or early 2024 January or February,” said Mr Shoko. 

“It’s not that we have any challenges, no, but the extent of work being done at the plant is massive. Remember it’s state of art works happening, hence we must be fast but also very sure.”

Disco is one of the three local subsidiaries of China’s largest stainless-steel producer, Tsingshan Holdings Group.

It also owns Dinson Colliery in Hwange in Matabeleland North and a ferrochrome plant, Afrochine Smelting Limited, in Selous.

The completion of Limited the project will result in a massive cut in Zimbabwe’s steel import bill while creating massive job opportunities for locals along the value chain. The development of the steelworks, poised to be one of Africa’s largest integrated steel plants, began last year with an initial production deadline of August this year but this has since been moved ahead following delays caused by the good rains the country experienced early this year.

The investment represents a huge stepping stone in Zimbabwe’s modernisation and industrialisation agenda in line with the National Development Strategy (NDS 1) and Vision 2030.

The world-class iron and steel plant would tap into a resource base that is estimated to last for 100 years and comprises a carbon and steel plant, an iron ore mine, and a ferrochrome plant, which will result in over 10 000 people benefiting through employment downstream.

As Zimbabwe is positioning itself to be one of the biggest global iron and steel producers, the World Steel Association has projected that demand forecast for 2023 and 2024 is expected to rebound significantly with the manufacturing sector set to lead the recovery.

Disco has signed a memorandum of understanding with the Government to undertake refurbishment and construction of a 1 000km long railway line to provide a dedicated, reliable, uninterrupted and efficient railway line to carry the company’s products for local and export-imports routes through Mozambique.

“The Sherwood-Manhize power line work is in full force. The wayleave clearance and excavation is complete while the resettlement of two families affected by the power line is in process with one home almost complete. Poles are now almost 30km done,” said Mr Shoko.

In the long term, Disco is expected to spur the growth of Zimbabwe’s iron and steel engineering industry, which took a heavy battering following the collapse of the Zimbabwe Iron and Steel Company (Zisco) in 2008, once the largest steel manufacturing plant north of Limpopo.

Since the closure of Zisco, Zimbabwe has been spending over US$1 billion annually in importing iron and steel-related products from the Southern African Development Community (SADC), mostly South Africa.

It is believed local steel manufacturing by the Chinese investors would cut imports by 90 percent. 

The steel plant was officially commissioned by President Mnangagwa last year paving the way for construction works. The US$1.5 billion project is envisaged to have a positive multiplier effect on the economy, which would be felt in both upstream and downstream industries.

Already buildings have emerged out of thick forests, where staff houses, warehouses, and a cement mixing plant are being constructed.

In 2021, steel and iron products imports soared to nearly US$410 million from US$306 million a year earlier, according to figures from the Zimbabwe National Statistical Agency, driven by a series of public and private infrastructure programmes.

High-end steel and iron products have also pushed demand up. According to ZimTrade, potential export markets for Zimbabwe include Zambia, Botswana, Angola, the Democratic Republic of Congo, Malawi, Mozambique, and Namibia.

 The global Trade Map has shown that Zambia imported iron and steel worth around US$226 million in 2020, with the majority coming from South Africa (US$113 million), China (US$64 million), Chile (US$27 million), and India (US$3 million). In terms of quantities, Zambia has been importing more iron and steel over the years, from around 58 000 tonnes in 2018 to around 81 000 in 2021.

Preliminary indications are that Disco would create 10 000 jobs directly once the Manhize operations start, while 1 700 jobs have been created from the works already underway. At its peak in the 1990s, Zisco produced over one million tonnes of steel and employed over 5 000 people directly, while thousands were employed in downstream industries.

The establishment of the steelworks will see the launch of several infrastructural projects such as road and rail networks, and a dam to provide water for domestic use, irrigation and industrial operations at the plant.

The development of the steelworks will also see a new town sprouting as well as several infrastructural development projects.

Such projects include a bridge Disco has constructed over the Munyati River, the development of a road and rail network, and a dam to provide water for domestic use and industrial operations at the steel plant.

An irrigation project is also on the cards in line with the Second Republic’s thrust of stimulating production across all sectors of the economy as enshrined in the NDS 1 towards an upper middle-income economy by 2030.