China's recent close cooperation with Zimbabwe may be part of the country's larger strategic plans in Southern Africa. The giant industrial park being built in the southern Zimbabwean town of Beitbridge is a large-scale investment in mining, power generation, coke production and steelmaking.
The project, called the Palm River Energy Metallurgical Industrial Park, is being led by China's Xinganglian (Shanxi) Holding Group and is expected to cost around USD 3.6 billion. The company aims to turn Zimbabwe into a major steel production center by utilizing the coal, iron ore and chromium reserves in the region. The project will be completed in five phases over 12 years and will cover a 5,163-hectare special economic zone.
Recent investments by Chinese companies in mining and industry in Zimbabwe are seen as part of a plan to turn the country into a center for steel and chrome production. While this sector is in decline, especially in Southern Africa, China's turn to Zimbabwe is attracting the attention of experts. Lauren Johnston, a China-Africa expert from the Center for China Studies at the University of Sydney, stated that she thinks it makes sense for China to choose Zimbabwe because the country has rich natural resources and a skilled workforce.
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