The Zimbabwean government has granted an indefinite iron ore mining lease to Din Sen Steel (Disco), the Herald reported. China's Dingsen Iron and Steel Company (Disco) is acquiring 12,270 hectares of land in Manhize near Mvuma to build a $1.5 billion steel mill.
Dingsen Steel Company (Disco) is the Zimbabwean subsidiary of Tsingshan Holding Group Limited, China's largest stainless steel producer.
Aoyama also operates two other local subsidiaries in Zimbabwe, namely Dingsen Coal Mine in Hwange, Matabeleland North Province and Afrochine Smelting (Pvt) Limited in Selous, Mashonaland West Province.
The project is touted as the largest integrated steel manufacturing plant in Africa.
Speaking at the handover ceremony in Harare yesterday, Mines and Mining Development Minister Winston Chitando praised the investors for continuing to build the project, which is the largest integrated steel mill in Africa, even though the title certificate has yet to be issued.
In 2019, the government also launched a mining roadmap that will see the mining economy reach $12 billion by the end of the year, driven by massive ongoing investment and expansion projects in the sector.
Prior to the launch of the mining growth target, the sector's contribution was $2.7 billion in 2018, and this figure has since grown alarmingly, reaching $5.3 billion by 2021.
The company said its first blast furnace will start production in November this year. When operating at full capacity, the mill will produce 1.2 million tons of carbon steel per year, with the first phase producing 600,000 tons per year for local and export markets.
