Disco's Massive $1.5 Billion Steel Plant Project Now Finished

The construction of the US$1.5 billion steel plant situated in Manhize near Mvuma has reached completion, with plans for its tentative commissioning scheduled for June 10 of the current year. This plant, deemed to be Africa's largest integrated steelworks, has been erected by Dinson Iron and Steel Company (Disco), a subsidiary of China's Tsingshan Holdings Group Limited, alongside Afrochine Smelting in Selous, Mashonaland West province, and Dinson Colliery in Hwange, Matabeleland North province.

The culmination of the construction phase encompasses key components such as the blast furnace, sinter plant, and the raw material complex. However, the pending aspect revolves around the power supply from Sherwood in Kwekwe to Manhize. A test run is slated to commence sometime between March and April, with the commissioning tentatively set for June 10, contingent upon the outcome of the trial run.

The advent of operations under the initial phase of the steel plant stands as a testament to the conducive investment environment fostered by the Second Republic under President Mnangagwa's initiative, "Zimbabwe is open for business." The prospective inauguration of this project positions Zimbabwe as a formidable force in steel manufacturing, bolstering the mining industry as all raw materials are sourced domestically, with iron ore in close proximity to Manhize. Consequently, the expansion of the steelworks is anticipated to generate numerous employment opportunities.

During the construction phase, the majority of workers hailed from the construction sector, whereas the focus now shifts towards recruiting personnel for operational roles. Recruitment efforts have commenced for laboratory, data capture, and technical staff across various sections of the plant. Presently, there are 1,500 workers on-site, with projections to employ an additional 2,500 workers upon the inclusion of construction personnel.

Disco is poised to produce 600,000 tonnes of products in the first phase, escalating to 1.2 million tonnes in the subsequent phase. Initially, production will center around pig iron, followed by steel billets and steel bars by year-end. Production is anticipated to surge to 3.2 million tonnes in the third phase and ultimately reach five million tonnes annually in the final phase, catering to a diverse range of steel products for the Zimbabwean industry. Direct employment at the steel plant is projected to reach 10,000.

In terms of revenue, projections estimate earnings of US$10 million during the initial phase, with expectations of soaring to US$4.25 billion by the fourth phase of production. The project is poised to bolster Zimbabwe's export earnings significantly, positioning it as a major regional supplier, particularly within the African Continental Free Trade Area. Enquiries have poured in from various regions, both domestically and internationally, underscoring the excitement surrounding the steel project.

The establishment of the Disco project is anticipated to yield several economic benefits for Zimbabwe, including diminished reliance on imports, job creation, and the stimulation of growth in downstream industries. Presently, Zimbabwe's significant importation of steel is draining foreign currency reserves, a situation that is poised to change with the operationalization of Dinson's first blast furnace. Furthermore, the availability of locally produced steel is expected to catalyze growth in downstream industries such as manufacturing, engineering, and construction, thereby fostering economic expansion and development across multiple sectors.