A joint venture between Zimbabwe and China's biggest steelmaker, Castle Peak, worth more than $1bn, is expected to transform mining not only in Zimbabwe but also in Sadak as it will make the region a highly regarded force, analysts say.
The groundbreaking ceremony for the joint venture, one of the cornerstones of the venture, will be held in Manhize, near Muma, in May this year as Zimbabwe strives to achieve a $12 billion mining sector by 2023.
The mine and associated steel mill, funded by Aoyama Holdings, is one of the ventures being launched under President Manangagwa's "Zimbabwe is open for business" initiative.
The Chinese investment came after President Manangagwa, then vice president, flew to China and met with Qinggang's chairman, Xiang Guangda, in 2016.
Ambassador Christopher Mutsvangwa, a former top Zimbabwean diplomat to China, said that without a domestic steel industry, no country can meet the challenges of modern development.
President Mangangwa firmly nailed it down.
Vision 2030 can be realized now.
The project was carried out in the Second Republic."
"Said Ambassador Mutsvangwa.
Mr Eddie Cross, an economic analyst, said the investment was unique because it was the first of its kind by a steel producer.
"This new investment is the first of several significant investments by companies in the steel industry and related industries.
The sums involved would be substantial and would change the dynamics of Zimbabwe and the SADC region.
"It will involve heavy industry, railways, energy and water supply.
Investment in mining to support this activity will also be substantial.
The scale of these investments is very significant."
He said.
Another economic analyst, Mr Andrew Cranswick, says the project will not only help bring money into Zimbabwe, but will also broaden the tax base due to the subsequent expansion of downstream industries.
"It's very exciting to make this kind of investment in Zimbabwe because it's not only mining, but also mineral processing, manufacturing and downstream benefits to GDP.
Taxpayers will get many times their initial investment.
"It's also important to note that there are very few countries in the world that have significant reserves of both iron ore and coking coal.
This matters because coking coal and iron ore together make up 80 per cent of the cost of making steel.
Mr Cranswick said: "So we should be a major player in steel manufacturing and we hope that major players in India, Japan, China, South Korea and even the West will consider relocating steel manufacturing to Zimbabwe."
Mines and Mining Development Minister Winston Chitando last week gave oral evidence before Parliament's Mineral Portfolio Committee that the mining sector was on track to meet its industry target of generating $12 billion in annual revenue by 2023.
He said the department is conducting a review of the industry's performance since the policy was introduced in 2019, which is scheduled to be released at the end of the quarter.
"While we await the results of the assessment that is currently under way, it is clear that the basic elements of the mine have been achieved and that the $12 billion target can be met," said Citando.
Gold is expected to contribute $4 billion, platinum $3 billion, chromium, iron, steel diamonds and coal $1 billion, according to a $12 billion mining roadmap.
Lithium is expected to contribute $500 million, while other minerals will contribute $1.5 billion.
At a briefing after Tuesday's cabinet meeting, the minister for information, publicity and broadcasting services, Monica Mutsvangwa, said the cabinet had been briefed on developments in the mining sector and was impressed.
In the profile, one of the main highlights is the Castle Peak Steel project, which has signed memorandums of understanding with Chinese mining giants on various mining projects, including stainless steel.
Some of the minerals covered by the memorandum include ferrochrome, coking coal, iron ore and carbon steel, fluorite and limestone, according to the document.
