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Mnangagwa to launch US$3.6 billion energy industrial park in Beitbridge
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President Mnangagwa is expected in Beitbridge today for the ground-breaking ceremony of the Palm River Energy and Metallurgical Special Economic Zone (SEZ), a collaborative project between the Government and a Chinese mining company. The initiative, valued at US$3.6 billion, aims to establish an energy industrial park focused on stainless steel production.
Located 20km west of Beitbridge town, the project has already employed 400 locals in its first year and is expected to create over 2,000 jobs once fully operational. The establishment of the industrial park follows discussions between Palm River Energy chairman Mr. Xong Xi Dong and President Mnangagwa. Covering 5,100 hectares within an SEZ, the initiative is anticipated to significantly contribute to Zimbabwe's mining and energy sectors.
The first phase is being implemented through a joint venture involving the Government, Xintai Resources, and Tuli Coal. The park will include a coking plant with an annual capacity of one million tonnes of coke, a ferro-chrome smelting plant producing 100,000 tonnes of high-carbon ferro-chrome annually, and a 1,200MW coal-fired thermal power plant, with surplus electricity to be fed into the national grid. Coal for the project will be sourced from Tuli Coal Mine, supporting Zimbabwe's plans to export coal and earn foreign currency.
The mining sector plays a critical role in Zimbabwe's economy, contributing over 60% of export receipts and attracting more than 50% of foreign direct investment (FDI). Additionally, it accounts for 13% of the national Gross Domestic Product, creating business opportunities and generating tax revenue. Mines and Mining Development Ministry deputy director for communications, advocacy, and mining community sustainability, Mr. Wilfred Munetsi, confirmed readiness for the President's visit.
"We have covered a lot of ground in terms of planning and we are ready for the ground-breaking of the project by President Mnangagwa," he said.
The project, spanning 5,163 hectares, will be developed in five phases over 12 years. The first phase, with a two-year construction timeline, involves an investment of US$237 million to establish a ferrochrome production capacity of 200,000 tonnes per year, along with supporting infrastructure. Raw materials for the industrial park will be sourced from established resource bases in Tuli and Wanji. Once completed, the SEZ is expected to be the world's most cost-efficient and competitive energy and metallurgical hub, integrating recycling and green energy solutions.
In addition to job creation, the project will provide technical training to Zimbabwean workers, enhancing their skills and fostering technology transfer. In 2018, President Mnangagwa designated Beitbridge a SEZ as part of the Second Republic's strategy to attract investment under the "Zimbabwe is open for business" initiative. The adoption of the SEZ model aims to enhance FDI, boost local business viability, and drive employment and economic growth in targeted areas.
Located 20km west of Beitbridge town, the project has already employed 400 locals in its first year and is expected to create over 2,000 jobs once fully operational. The establishment of the industrial park follows discussions between Palm River Energy chairman Mr. Xong Xi Dong and President Mnangagwa. Covering 5,100 hectares within an SEZ, the initiative is anticipated to significantly contribute to Zimbabwe's mining and energy sectors.
The first phase is being implemented through a joint venture involving the Government, Xintai Resources, and Tuli Coal. The park will include a coking plant with an annual capacity of one million tonnes of coke, a ferro-chrome smelting plant producing 100,000 tonnes of high-carbon ferro-chrome annually, and a 1,200MW coal-fired thermal power plant, with surplus electricity to be fed into the national grid. Coal for the project will be sourced from Tuli Coal Mine, supporting Zimbabwe's plans to export coal and earn foreign currency.
The mining sector plays a critical role in Zimbabwe's economy, contributing over 60% of export receipts and attracting more than 50% of foreign direct investment (FDI). Additionally, it accounts for 13% of the national Gross Domestic Product, creating business opportunities and generating tax revenue. Mines and Mining Development Ministry deputy director for communications, advocacy, and mining community sustainability, Mr. Wilfred Munetsi, confirmed readiness for the President's visit.
"We have covered a lot of ground in terms of planning and we are ready for the ground-breaking of the project by President Mnangagwa," he said.
The project, spanning 5,163 hectares, will be developed in five phases over 12 years. The first phase, with a two-year construction timeline, involves an investment of US$237 million to establish a ferrochrome production capacity of 200,000 tonnes per year, along with supporting infrastructure. Raw materials for the industrial park will be sourced from established resource bases in Tuli and Wanji. Once completed, the SEZ is expected to be the world's most cost-efficient and competitive energy and metallurgical hub, integrating recycling and green energy solutions.
In addition to job creation, the project will provide technical training to Zimbabwean workers, enhancing their skills and fostering technology transfer. In 2018, President Mnangagwa designated Beitbridge a SEZ as part of the Second Republic's strategy to attract investment under the "Zimbabwe is open for business" initiative. The adoption of the SEZ model aims to enhance FDI, boost local business viability, and drive employment and economic growth in targeted areas.
Source - The Herald
