The Dinson Iron and Steel Company (Disco) has fired up its limestone production unit, a critical step towards powering their massive US$1.5 billion steel plant in Manhize, Chivhu.
This marks a significant milestone for the country’s economic development and embodies the success of ongoing reforms.
Limestone plays a vital role in steel production. Iron ore often contains impurities like silicon dioxide (sand) that need to be removed during processing. Disco’s engineers explain that limestone decomposes under intense furnace heat, transforming into calcium oxide.
This calcium oxide then reacts with the sand impurities, forming a waste product called slag, effectively purifying the iron ore.
The successful launch of the limestone plant and the nearing completion of the 88kV power line from Sherwood block in Kwekwe signify tremendous progress on the Manhize steel project.
This plant, owned by Disco, a subsidiary of Tsingshan Holdings Group Limited (one of China’s leading stainless steel producers), is poised to become one of Africa’s biggest integrated steelworks.
The Manhize investment is a game-changer for Zimbabwe, propelling the nation towards becoming a global steel manufacturing hub.
With projections suggesting Zimbabwe’s potential as a future powerhouse in the steel and iron industry, the project extends far beyond the factory walls.
Plans for a university focused on science and the establishment of a smart city named Manhize Town paint a picture of a large-scale development with far-reaching impacts.
The project’s financial projections are equally impressive. Initial estimates predict net revenue of up to US$10 million in the first phase, with a staggering increase to US$4.25 billion by the fourth phase.
Disco’s giant steel plant is anticipated to produce 600,000 metric tonnes of products annually in its initial phase, growing to 1.2 million tonnes in the second phase.
Production is expected to climb further to 3.2 million tonnes in the third phase, ultimately reaching a capacity of 5 million tonnes per year by the final stage.
This surge in production will generate substantial foreign currency earnings for Zimbabwe.
Looking beyond raw materials, Disco’s future product range is extensive.
The company plans to manufacture pipes, various fasteners (bolts and nuts), different slag sizes, rolled tubes, fencing materials, shafts, wires, and bars – to name a few.
The Manhize steel project promises to be a transformative endeavour for Zimbabwe’s economy and its position in the global steel industry.