A steel plant in Tete province costing about US$770 million will help boost the economic development of that region of Mozambique, announced Tuesday in Tete provincial governor Paulo Auade, quoted by Mozambican news agency AIM.
The plant, with an annual production capacity of 500,000 tons of steel rods, will be built in the Revuboé Industrial Free Zone, recently created by the government and production is scheduled to begin in January 2020.
Located on the border between the districts of Moatize and Chiúta, the plant will occupy an area of about 4,484 hectares, and will make use of iron ore deposits discovered in the province totalling around 759 million tonnes.
This project, called “Tete Iron & Steel Project” involves Baobab Resources, with a 13% stake, in partnership with the International Finance Corporation, of the World Bank group.
Baobab Resources commissioned a number of companies, such as the Metallurgical Corporation of China and ABB, to conduct a feasibility study for an operation to produce 500,000 tonnes of long steel products, which should be completed by the end of the month.
Paul Auade, speaking at the Fourth Ordinary Session of the Provincial Assembly (PA), a three-day event taking place in the town of Moatize, stressed that construction of the steel plant will allow the emergence of other industrial units and will either process the materials produced there or other accessory products. (macauhub/CN/MZ)