Plans to re-open sponge iron plant at advanced stage
PLANS to re-open the multi-million dollar sponge iron plant run by Steelmakers in the Masvingo industrial area have reached advanced stage, with the firm expected to resume full production by the end of next month.
The sponge iron plant, trading under the name SIMBI, closed in 2014 owing to depressed prices of the product, together with market shrinkage.
SIMBI operates a multi-million dollar sponge iron plant in the Masvingo industrial area together with an iron ore mine at Glenlivet Hills, about 30 kilometres east of Masvingo city.
The firm’s general manager in Masvingo Mr Rao Anand last week confirmed the re-opening of the plant.
He said recruitment of employees had already started, with staff complement at the Masvingo plant expected to reach 100, while the iron ore mine will employ a further 50.
“We are preparing to start mining at Glenlivet and we hope to start iron ore shipments to Masvingo by next week after electricity has been reconnected at the iron ore mine to crush stones that have ore containing iron,’’ he said.
‘’The main plant in the Masvingo industrial area also needs to be refurbished and we have since paid for the required spare parts in India which we expect in the country in the near future. All in all, we need about 20 to 30 days to be up and running again.’’
Mr Anand said SIMBI had been recruiting skilled employees such as engineers and electrician.
“We are happy that we have already secured some of coal requirements for our plant from Botswana,” he said. “Some of the coal will also come from our mine in Chiredzi.’’
Steelmakers operate a coal mine in Gudo communal lands in Chiredzi East.
Mr Anand revealed that his company had secured markets for its sponge iron in neighbouring South Africa and other countries in East Africa, among other potentially lucrative destinations for the firm’s products.
He said at full throttle, the Masvingo plant will produce 100 tonnes of sponge iron daily.
About 30 tonnes of the product would be shipped to the Steelmakers plant in Redcliff daily.
Steelmakers opened amid high expectations several years ago after it became the biggest company in the Masvingo industrial area in terms of assets and size of labour force.
Masvingo city council has already expressed optimism that the impending re-opening of the sponge iron plant will stimulate economic activity in the country’s oldest town.
Several investors have been stampeding to start or re-open their businesses in Zimbabwe in the wake of the new political dispensation ushered by the ascension of President Emmerson Mnangagwa to the country’s presidency.