Feb. 21 (Bloomberg) -- Contractors are adding a sinter plant and slag gravity separation unit at Sinosteel Corp.’s Zimasco smelter in Zimbabwe, increasing Chinese investment in the country’s largest ferrochrome producer.
The plants are being built by Jilin Houyan and Gold Horizon, Clara Sadomba, Zimasco’s general manager for marketing, said in an e-mailed statement today. The estimated cost of the work is $25 million, not the $250 million reported earlier in the country’s Herald newspaper.
The contractors have brought in and installed the plants at their own cost, and Zimasco doesn’t know the exact investment, Sadomba said. “However, based on our own assessment of the equipment and type of plants installed, our estimate of the capital for both the plants would be approximately $25 million.”
The plants will process sintered ore and ferrochrome fines for Zimasco’s Kwekwe refinery under contract, Sadomba said. She didn’t specify how much Zimasco will pay for each ton of processed ferrochrome. A sinter plant is used to solidify powdery and fine ore.
Zimasco mines the country’s Great Dyke mountain range and smelts its chrome in the Midlands Province city of Kwekwe. The country has the largest deposits of the mineral after South Africa.
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