Beitbridge is set to undergo a significant transformation as Chinese mining giant Shanxi Corporation commits $3.6 billion to a multi-faceted project aimed at revitalizing the town. The ambitious Palm River mining initiative received official approval from President Emmerson Mnangagwa in 2022, paving the way for construction to commence and signaling a strong commitment to economic development in the region.
Situated 20 kilometers west of Beitbridge, the company is now in the first phase of development, focusing on a sprawling 5,000-hectare area designated as a special economic zone. As machinery begins operations, the once-quiet town is experiencing the sounds of construction, which reflect a renewed hope for economic growth and job creation in a place that has faced challenges in recent years.
During a recent visit to the Palm River site, Mines and Mining Development Minister Winston Chitando emphasized the project’s integrated approach, which combines mining operations with energy production. “The direction for this project came from discussions between the President and the company’s chairman, who emphasized that it should function as an integrated mining and energy park,” Chitando explained, underscoring the importance of collaboration between government and industry stakeholders.
The Palm River project will encompass various operations, including mining, power generation, coke production, and steel manufacturing. Gases emitted from high-carbon ferrochrome production will be harnessed to generate an estimated 1,200 megawatts of electricity annually, representing a significant step towards energy self-sufficiency.
Additionally, the project plans to produce coke using coal sourced from the nearby Thuli and Hwange regions, with an expected output of 1 million tonnes per year. Chitando noted that the electricity generated at Palm River would alleviate some pressure on the national power grid, addressing ongoing energy supply concerns that have affected many sectors across the country.
“I want to express my gratitude to the company for being a responsible producer of high-carbon ferrochrome. This sector is one of the largest consumers of electricity in the country,” Chitando said. “In light of the current energy challenges, the company recognized the need to generate its own electricity, minimizing dependence on ZESA,” reinforcing the project’s critical role in ensuring a reliable energy supply.
Evelyn Ndlovu, the Minister of State for Matebeleland South, highlighted the potential economic benefits of the project, stating that it would enhance the province’s gross domestic product and create much-needed jobs. “This facility is crucial for our province, which currently has a low GDP contribution. The introduction of this plant will help improve our economic standing,” Ndlovu noted, emphasizing the transformative impact the project could have on the local economy.
She added, “We are also excited about the job opportunities it will provide for our residents, many of whom have been traveling to South Africa and Botswana for employment. This project presents a significant opportunity to employ our youth,” highlighting the project’s potential to address unemployment and encourage local development.
President Mnangagwa is expected to visit the Palm River site soon for a groundbreaking ceremony, signaling a new era of development for Beitbridge and the broader region. The ceremony will mark a pivotal moment in the project, celebrating the collaboration between the government and Shanxi Corporation while showcasing the potential for future growth and prosperity.
