Dinson diversifies into lithium mining
DINSON Iron and Steel Company (Dinson), which is developing the US$1,5 billion steel plant in Manhize near Mvuma, has secured lithium mining claims in Gwanda and Goromonzi districts as the firm diversifies operations in Zimbabwe.
Last year, Dinson, which is one of the three local subsidiaries of China’s stainless steel producer, Tsingshan Holdings Limited Group, announced the intent to set up a lithium-ion batteries manufacturing plant.
The group’s two other subsidiaries are Dinson Colliery in Hwange, Matabeleland North Province and Afrochine Smelting in Selous near Chegutu, Mashonaland West Province.
Dinson expects to produce two million tonnes of lithium concentrate annually to support the proposed battery manufacturing plant.
Mines and Mining Development Deputy Minister Dr Polite Kambamura said the Government was grateful that Tsingshan has set itself as a good example of a serious investor through its investments in the country and the level of progress they have made in the development of the steel plant in Manhize.
“They (Dinson) are now diversifying into lithium mining in Gwanda (Matabeleland South Province); they also have another project in Goromonzi, Mashonaland East Province, so we are sure this (lithium) project will come to fruition given the good example they set at Manhize.
“They are also going to build beneficiation facilities for lithium in line with the Government’s thrust of local value addition and beneficiation,” he said.
Last year, the Government banned exports of lithium ore and unpurified lithium salts unless the producer can prove special circumstances.
Dr Kambamura said the projects by Dinson would certainly increase economic activity including employment creation across upstream and downstream industries in the country.
“Also the diversification will increase our export receipts taking into account that most of their (Dinson) products are for exports, so it’s actually good for the industry and the country at large.
“The other thing is that Dinson will be also developing other supporting minerals to the iron and steel industry. These (supporting minerals) include limestone, ferro-chrome.”
He said Afronchine Smelting, a sister company of Dinson in Selous near Chegutu, Mashonaland West province, in the long-term intends to develop limestone mines in the country.
“So, it’s actually an integrated industry with many other supporting industries which Dinson will be spearheading,” said Dr Kambamura.
Meanwhile, production at Manhize is expected to commence next month with Dinson targeting to produce pig iron followed by steel billets in May and steel bars in October.
The company is projecting to produce 600 000 tonnes of products in the first phase rising to 1,2 million tonnes in the second phase, then 3,2 million in the next phase and ultimately five million tonnes in the final phase.
-herald.cl.zw
