Global steel giant Accelormittal is now importing 45 000 tonnes of coke worth US$10 million monthly from Zimbabwe, a culmination of the Zimbabwe is open for business policy by the Second Republic.
President Mnangagwa held talks with the firm’s chief executive officer and director, Mr Kobus Verster,last year and shared plans to build coke oven batteries as part of the beneficiation and value-addition process that will create thousands of jobs for Zimbabwe.
Each coke oven battery is valued at US$15 million and coke batteries are planned for Hwange and Binga areas. A battery of such value produces about 10 000 tonnes of coke a month.
ArcelorMittal South Africa is also venturing into a public private partnership with National Railways of Zimbabwe to buy new wagons and revamp the country’s railway network, to facilitate the smooth movement of goods in the region, especially that of its coke and tar.
Under the Second Republic, Zimbabwe is attracting international firms, with one of the world’s largest steel producers, ArcelorMittal, being the biggest buyer of coke produced in the Hwange.
The country is also exporting 2 000 tonnes of crude tar across the Limpopo per month, earning more foreign currency.
The firm, which manufactures steel for Toyota vehicles, had temporarily halted import from its Hwange suppliers but is now buying again.
Fruitful deliberations were conducted between ArcelorMittal South Africa and local suppliers, resuming coke purchases from the Hwange region.
The firm’s representative in Zimbabwe, Dr Dudley Jura, in a statement yesterday said the firm remains committed to doing business in Zimbabwe hence they will continue to find each other with their suppliers.
Dr Jura said the engagements were aimed at ensuring that quality management practices were put in place in the coke-making process so that the product remained competitive. Supply arrangements also had to be commercially viable.
“Given this development, a record 45 000 tonnes, in value about US$9,6 million a month, of coke will be exported by the Hwange-based coke producers to this customer in March 2024, raking in millions of foreign currency to thecountry.Monthly shipments of the same quantity are expected to continue. ArcelorMittal South Africa has been attracted by the ease with which business can now be conducted in the Second Republic,” said Dr Jura.
ArcelorMittal SA was actively involved in the market for coking coal and several coal mines in Zimbabwe were discussing supply arrangements.
“Some tests continue to be done on the coking coal reserves in Binga and Hwange areas.
“The steel producer is also engaging others in Zimbabwe’s steel industry for potential techno-commercial partnerships that are vital in the industrialisation of Africa at large,” he said.
Monthly volumes of 2 000 tonnes of crude tar are being exported for further processing at ArcelorMittal’s high-tech facilities in SA. Coal tar is a raw material used in the production of pitch, an ingredient in producing electrode paste, oils, chemicals, wood preservatives and other special by-products.
Recently A nine-member delegation from the Global Opportunities Committee of the Atlanta Black Chamber (ABC) was in the country to explore investment opportunities.
Zimbabwean ambassador to the United States, Tedious Chifamba said the ABC is planning to invest more than US$500 million in Zimbabwe.
The nine-member ABC delegation, led by Ricardo Berris, comprised individuals with vast experience in agriculture, real estate, manufacturing, mining and bio technology. Also last week a high level delegation was in Rwanda for a business summit with the intention to explore more investment opportunities for the twocountries.
Source Herald.com
