US$3.6 billion energy industrial park set to transform Beitbridge

A groundbreaking US$3.6 billion energy industrial park is set to transform Beitbridge following a collaboration between the Government of Zimbabwe, Chinese mining firm Palm River Energy, and the Metallurgical Special Economic Zone. The park, located 20 km west of Beitbridge town, aims to bolster Zimbabwe’s mining and energy sectors through the production of stainless steel, along with significant infrastructure and employment opportunities.

In its first year, the project has already employed 400 local workers, with plans to expand to 2,000 employees once fully operational. Covering 5,100 hectares within a designated Special Economic Zone (SEZ), the initiative represents a strategic move to develop Beitbridge into an integrated mining and energy hub.

The launch of the industrial park follows discussions between Palm River Energy chairman Mr. Xong Xi Dong and President Emmerson Mnangagwa, who greenlit the project as part of his administration’s “Zimbabwe is open for business” policy.

The park’s first phase, a joint venture between the Government, Xintai Resources, and Tuli Coal, includes the establishment of a coking plant capable of producing one million tonnes of coke annually, a ferro-chrome smelting plant to generate 100,000 tonnes of high-carbon ferro-chrome, and a 1,200 MW coal-fired thermal power plant. Excess power produced by the facility will be fed into the national grid.

The ferro-chrome plant will contribute to the production of special and stainless steel, positioning Zimbabwe as a major player in global steel production. Coal for the park will be sourced from Tuli Coal Mine, with plans to export coal products to international markets, boosting foreign currency earnings.

Mines and Mining Development Minister Winston Chitando, following a recent tour of the project, praised President Mnangagwa for securing the necessary capital and monitoring progress closely. “This project exemplifies the success of the Second Republic’s ‘Zimbabwe is open for business’ mantra,” said Minister Chitando. He noted that the first phase of thermal power production is well underway, with the initial 50 MW expected to be followed by an additional 50 MW.

Minister Chitando also highlighted the value addition programme, where coking coal from Tuli Coal Mine and Hwange will support coke production. He commended the investors for adopting environmentally responsible technologies, such as closed arc furnaces, which minimize emissions and use byproduct gases for electricity generation.

“This innovation illustrates a responsible approach to production that should be emulated by other high-carbon ferro-chrome producers,” he said, urging other producers to contribute to the country’s electricity generation efforts.

The park’s impact on Beitbridge and Matabeleland South Province is expected to be transformative. Minister of State for Matabeleland South Provincial Affairs and Devolution Dr. Evelyn Ndlovu emphasized the project’s long-term benefits. “This project will transform Beitbridge District and the entire province. It involves mining, energy production, and value addition, and will significantly boost the provincial GDP,” said Dr. Ndlovu.

In addition to industrial development, a skills training programme in collaboration with the Harare Institute of Technology will be introduced to equip locals with relevant expertise. Dr. Ndlovu also revealed that the project will give rise to a new township, featuring low, medium, and high-density suburbs to accommodate workers and their families.

The establishment of the Beitbridge Special Economic Zone in 2018 is part of President Mnangagwa’s broader vision to attract foreign direct investment and foster economic growth in strategic areas. The energy industrial park is a major milestone in that journey, contributing to Zimbabwe’s industrialisation goals and the Government’s Vision 2030 to build a modern, prosperous nation.