Pig iron from Manhize: Giant steel plant reaches milestone

Source: Pig iron from Manhize: Giant steel plant reaches milestone | The Sunday News

Judith Phiri, Business Reporter

DINSON Iron and Steel Company (Disco) steel plant in Manhize near Mvuma, in the Midlands Province, which recently fired up its blast furnace, marking the start of pig iron production at the plant, will announce the pig iron pricing structure tomorrow (Monday) before selling starts.

The development marks a significant step forward for the plant, which is expected to have a substantial impact on the region’s industrial landscape.

Pig iron, also referred to as crude iron, is an intermediate product used in the iron industry for steel production. It is created by smelting iron ore in a blast furnace.

The Manhize Plant is scheduled for commissioning sometime this year, with most major works at the giant plant complete.

The plant will be among Africa’s biggest integrated steelworks, being built by Disco, one of the three local subsidiaries of China’s global stainless steel producer, Tsingshan Holdings Group Limited.

The group also owns Dinson Colliery in Hwange, Matabeleland North and a ferrochrome plant, Afrochine Smelting Limited, in Selous, Mashonaland West Province.

In an interview, the project manager, Mr Wilfred Motsi said the company expects to produce 600 000 tonnes of steel products annually at the peak of its first phase of production.

“Last Wednesday afternoon, the blast furnace successfully began pig iron production, which is now ready and the price will be out on Monday (tomorrow). The plant is projected to produce 600 000 tonnes of products in the first phase, rising to 1,2 million tonnes in the second phase, 3,2 million tonnes in the third and five million tonnes per year in the final phase,” he said.

He said both the construction of the US$1.5 billion plant and the electricity transmission line from Sherwood in Kwekwe to Manhize had been completed.

Production at the Dinson Iron and Steel Company (Disco) steel plant in Manhize

The iron and steel investment positions Zimbabwe among the ranks of global steel manufacturing hubs, with projections indicating the country’s potential to emerge as a future powerhouse in the iron and steel industry.
Zimbabwe Institute of Foundries chief operating officer, Mr Dosman Mangisi said the opening of the Dinson steel plant will have a positive impact on the resuscitation of the local engineering, iron and steel sector.

“The operation of Dinson steel plant is one of the major developments in the country, which will positively contribute to the metal casting industry in Zimbabwe. The business community, industrialists, mining industry and the Government itself on both monetary and fiscus will feel the impact by the end of the year, while it will also increase exports,” he said.

Mr Mangisi said the development was coming at a time when the foundry industry was grappling with the shortage of raw materials, which would also force the prices of scrap metal to go down.

Mr Mangisi said the knock-on effect had resulted in depressed production by companies in the engineering, iron and steel sectors including foundries.

In March, President Mnangagwa toured the plant and expressed satisfaction with the progress made so far.

In his address after the tour, the President said: “This investment and the speed at which works are ongoing is a testimony of the confidence the investors of this project have in the conducive business environment and policies of the Second Republic.
“Over the years, the full potential of our iron ore resources and value chains have remained largely untapped. However, under the Second Republic, the milestones we are realising through exceptional teamwork, focus and determination from both public and private sector have seen the establishment of this national strategic project.
“It is therefore pleasing that our iron ore will be fully exploited, value added and beneficiated locally. This shift in focus allows us to realise maximum benefits from our natural resources, while also capitalising on the value chains including processing, manufacturing and the supply of high-value finished steel goods and products.”
The President said by producing its own steel, Zimbabwe was priming itself for unprecedented infrastructure development, pursuant to the attainment of Vision 2030.