China’s partnership with Zimbabwe includes a substantial US$3.6 billion project to develop the Palm River Energy Metallurgical Industrial Park, designed to exploit the country’s rich mineral resources and enhance its steel production capabilities. This initiative signifies Zimbabwe’s growing importance as a resource hub amid industrial declines in neighboring regions.
In Beitbridge, Zimbabwe, a significant industrial park is in progress, focusing on electricity generation, chromium-based materials, and steel production. This initiative, named the Palm River Energy Metallurgical Industrial Park, involves an investment of US$3.6 billion by the Chinese firm Xinganglian (Shanxi) Holding Group. The project aims to capitalize on Zimbabwe’s plentiful reserves of coal, iron ore, and chrome, ultimately establishing the country as a leading steel producer.
The ambitious venture will span 5,163 hectares (12,758 acres) within a designated special economic zone. It encompasses mining, power generation, coke production, and steel manufacturing, with plans to develop it in five phases over a duration of 12 years. This investment highlights Zimbabwe’s emergence as a crucial resource hub for China amid declining industrial activity in neighboring South Africa.
According to Lauren Johnston, a specialist in China-Africa relations and an associate professor at the University of Sydney’s China Studies Centre, China’s investments in Zimbabwe underscore its strategy to establish an industrialization zone for steel and chrome production in Africa. Johnston remarks, “This makes sense. Zimbabwe has a rich human capital and natural resource endowment.”
In summary, China’s escalating alliance with Zimbabwe, exemplified by the Palm River Energy Metallurgical Industrial Park, underscores strategic investments aimed at harnessing the country’s abundant natural resources. The project not only positions Zimbabwe as a crucial player in steel production but also reflects China’s broader ambitions in southern Africa, focusing on economic expansion and resource management.
Original Source: www.zawya.com
