The steel foundry to be built in the province of Tete, central Mozambique, will have an annual production capacity of 1.5 million tonnes of steel, said Monday the Minister of Industry and Trade, Max Tonela.
Presenting the results Bapba Resources’ Feasibility Study for an Iron and Steel Industrial Project, in which there will be an investment of US$950 million, the minister said the project will create 2,580 jobs, 85% of which will be filled by Mozambican workers.
This Baobab Resources project includes, in addition to steel, a coal-fired power station with an installed capacity of 250 megawatts of electricity.
The project is being developed by Baobab Resources Limited, a company registered in the UK, in partnership with the International Finance Corporation (IFC) of the World Bank Group and has as the Metallurgical Corporation of China as a technological partner, said the minister.
Prosecutors, according to the Minister for Industry and Trade, have already invested more than US$50 million in research and studies for the project.
The minister recalled the government, after assessing the great potential of this project, had approved the creation of the Rovubué Industrial Free Zone, covering the districts of Chiúta and Moatize in Tete province, with an area of about 4,456 hectares.
The decision opens the way for installing other industries to complement Baobab’s steel plant in the same area. (macauhub)