Moza port boon for Zim steel
Ms Olivia Machel, the daughter of Mozambican founding leader, the late Samora Machel yesterday led a delegation that met President Mnangagwa at State House to canvass support for the development of a $7,8 billion port that will have an immediate impact on Zimbabwe.
Accompanied by Zanu PF spokesperson Cde Chris Mutsvangwa, Ms Machel, who leads the Mozambique System of Transport that is set to develop the Chonguene Port, said the mission is to fulfil the dream of SADC founding fathers.
In an interview after a closed-door meeting with the President, Ms Machel said Mozambique has to play its role as the region’s transport and energy hub.
“I came for economic development, to tell the President on the project we are developing. We spoke a lot about SADC where Mozambique is responsible for Transport and Energy. The region is in demand of transport and energy due to the mineral resources available. We came here to present this dream of Samora Machel about a channel to serve the hinterland and to serve countries that helped us get our
independence, this will become one of the biggest ports in the region.
“President Mnangagwa is aware of this project. The integration of SADC is now through the economy because politics has already been designed by founding fathers. We are trying to implement the vision of those founders through the economic liberation of the region,” she said.
For Zimbabwe, which is set to become the biggest steel producer in the region, the port will offer a shorter route for steel exports expected to start late this year or early next year.
Fortune-listed Tsingshan, which is spearheading the project in Chivhu-Mvuma-Manhize will upon commencement of operations become the biggest steelmaker in SADC with an expected turnover of US$1,5 billion from the processing plant and iron ore mine.
Equipped with a 1,5km by 600 metre carbon and steel plant, an iron ore mine, and a ferrochrome plant, the project will have a capacity of 1,2 million tonnes a year, while between 4 000 and 5 000 people will benefit through employment across value chains.
Cde Mutsvangwa, who is Zimbabwe’s former Ambassador to China, said Zimbabwe is set to become a major player in the world steel industry and the Mozambican port will come in handy as it will cut the distance from the current route that goes down to the South African port of Durban.
“Olivia was leading an investment delegation from Mozambique. It is a special purpose vehicle for the development of Chonguene Port, which is on the mouth of the Limpopo River.
“This port is a natural deep water port, it comes in handy because while they have been looking at this port for a long time, Zimbabwe started to develop a major steel plant in Chivhu-Mvuma-Manhize. This steel plant is being driven by the largest producer of stainless steel in the world, Tsingshan.
“By end of this year Zimbabwe should be producing steel, which has three times the capacity of ZISCO, which is 1,2 million tonnes. We only use probably 600 000 tonnes so clearly from the onset we will be exporting stainless steel from Zimbabwe.”
“The immediate market is the region including South Africa and we will be producing at probably half the price that South Africa is producing because of the proximity of all the elements, which make steel within Zimbabwe like ferrochrome and coking coal, then the iron ore itself which on the Manhize complex, one of the biggest in the world.
“The infrastructure, which is needed for export, coincide with what Olivia and her special purpose vehicle for the Chonguene port have been up to. So she came to canvas support from the President because Zimbabwe will be the immediate beneficiary,” said Cde Mutsvangwa.
According to Ambassador Mutsvangwa, last week Ms Machel had extensive discussions with representatives from Tsingshan so that their project will factor in the steel that will come from Zimbabwe through Chonguene Port en-route to regional and world markets.
“These are the works of the Second Republic, President Mnangagwa went out and said Zimbabwe is open for business. Olivia and her investment team came to discuss this so that the enabling political and governmental frameworks can provide the necessary support to make this project take off,” he said.-The Herald
