A unit of Redcliff-based steel manufacturer, Steelmakers is seeking a $155 million loan to increase its sponge iron output to 300 000 tonnes from the current 30 000, a company official has said.
Steelmakers general manager Alexander Johnson said the fresh capital would increase output at its Masvingo iron plant subsidiary Simbi Steelmakers.
He said the expansion project is set to commence early next year and will be financed through long-term borrowings and equity partnerships.
“The project is expected to cost about $155 million and is aimed at completing the unfinished three phases of Masvingo’s initial plan,” Johnson said.
“If implemented Simbi will now produce ten times more than the current output.”
Steelmakers resumed production at its Masvingo plant in 2012 which had been closed following a breakdown of plant equipment.-The Source