The Zimbabwe government and a Chinese mining company, Tsingshan on Tuesday signed a multi-billion dollar deal which will allow the latter to mine chrome, iron ore, nickel and coal in Zimbabwe.
The initial phase of the deal will cost US$2 billion. The figure will rise to between US$5 and US$10 billion to involve the establishment of a power generation plant and the construction of a railway line to the port.
Mines and Mining Development Minister Winston Chitando penned the deal on behalf of the government of Zimbabwe while Tsingshan was represented by Chen Shangsong. Speaking at the signing of the agreement, Chitando said:
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The initial MOU signed last year was targeting to produce 550,000 tonnes of ferrochrome for consumption in Mvuma only but we are now targeting 1 million tones for consumption in Mvuma and for export.
… The MOU will also include Tshingshan looking into the possibility of working with government and other institutions in exploring the construction of a railway line to the port.
Chen claimed that the project is set to create 30 000 jobs.
The signing ceremony was also attended by President Emmerson Mnangagwa and several cabinet ministers.