HWANGE-BASED Dinson Colliery has started constructing a second manufacturing plant, which will see production of coke increasing from 150 000 tonnes to 180 000 tonnes per year, generating more than US$50 million.
Dinson Colliery Limited is 100 percent owned by Dinson Holdings Group, which is also owned by the Chinese Tsingshan Group
It is one of the biggest iron and steel makers in the world and recently opened a steel plant in Manhize, Mvuma, which is set to be the biggest in Africa.
Following Phase 1 construction, which started in 2019, the company has to date invested close to US$30 million.
Phase 2 construction is now 50 percent complete and the company says additional US$20 million will be invested to further boost annual production capacity.
Initially, Dinson aimed to supply Afrochine Smelting, a sister company but due to excess coke, it supplies various local markets and exports to South Africa and Zambia, with plans to expand to DRC.
Minister of State for Presidential Affairs and Monitoring Implementation of Government Programmes Dr Joram Gumbo visited the plant recently to assess progress made under its Phase 2.
He applauded the company for the project, which he said would enhance production of steel and reduce the huge import bill which is as a result of the closure of Zisco Steel.
“I’m pleased that Phase 2 of the project is progressing well and indications are that operations will commence by December this year,” said Dr Gumbo.
On completion Phase 2 the company will increase annual output to 180 000 tonnes and will generate a revenue of approximately US$54 million.
Phase 3 of the project is will further increase output to enable the company to supply the Mvuma plant.
Production of steel in Manhize will depend on coke produced at the Dinson plant as 60 percent of the coke will be used locally and 40 percent exported to Sadc countries. The Mvuma plant is projected to produce 1,2 million tonnes of iron and steel per year.
Demand for iron and steel products has increased recently due to the general boom in the construction sector and the focus on infrastructure development and rehabilitation since the advent of the Second Republic.
“The magnitude of your investment in the country is an indication that you have responded positively to the ‘Zimbabwe is Open for Business’ call by President Mnangagwa,” said Minister Gumbo.
Dr Joram Gumbo
He said Government welcomed the implementation of the project.
“We also encourage you to continue to foster mutually beneficial relationships with communities,” said Minister Gumbo
Dinson officials said they were facing shortage of land for expansion while some of their skilled personnel from China were facing immigration paperwork challenges.
Dinson has created about 500 jobs for locals and the company said it enjoys preferential tax policies by virtue of being in a Special Economic Zone. — @ncubeleon
