Zimbabwe is set to be home to Africa’s largest steel mill, but controversy over the project continues even as it ramps up production.
Over the past few months, villagers have accused Dinson Iron and Steel Company, or DISCO, a subsidiary of a Chinese steel mill, of taking over their land without compensation, damaging the environment and failing to help them resettle.
There are also fears that the project, along with the impact of the climate crisis, will affect food security for villagers who live in areas adjacent to the plant.
Chokutaura Chananda, 81, head of Mushenjere village in central Zimbabwe, told VOA that the villagers are asking for help from all stakeholders. They are also calling on the Chinese steel company to honor its promises of compensation and resettlement.
“We call on all parties involved to intervene, come together and support our cause,” Chananda said. “As the rightful owners of the land, we deserve fair treatment from DISCO. We seek development, not destruction.”
DISCO, a subsidiary of China’s Tsingshan Holding Group, one of the world’s largest stainless steel producers, denies any wrongdoing.
In June, some local villagers staged a protest and tried to block DISCO trucks from entering the factory. Villagers accused the company of forcing residents off their land without compensation, causing food shortages and heavy dust pollution.
Chananda told VOA that while the company welcomes investment and business development, residents felt the company’s behavior was disrespectful and insensitive.
The steel and mining giant is building a fence around farmland and pastures in the area, further isolating the families of Mushenjere village from their traditional sources of livelihood. Until 2021, when the steel mine came to Manhize, the people of the region relied mainly on subsistence agriculture for their livelihood.
The factory has displaced more than 100 families, leaving them in poverty and food insecurity, according to villagers.
A September report released by the Center for Natural Resources Management concluded that Chinese mining operations in Zimbabwe are not necessarily mutually beneficial.
“Evidence on the ground shows a deepening rift between Chinese nationals and their Zimbabwean co-workers and host communities. Ordinary Zimbabweans increasingly accuse China of exhibiting colonial traits,” the report said.
Villages near the DISCO ‘plant’ by the Chinese company were clearly left out of the engagement platform,” the report said. The report adds that “this lack of meaningful engagement and consultation has led to feelings of disenfranchisement and marginalization among affected communities”.
Promises of economic benefits
The $1.5 billion plant began production in July and is expected to create 10,000 new jobs when it reaches the final stages of production. It is currently operating at 60% of its capacity and aims to reach 75% early next year.
Expected to be an economic boon for Zimbabwe, the country hopes to reap financial benefits from the project when steel is exported from the plant in the future.
The steel industry could contribute about $5 billion to the national economy, Zimbabwe’s Mines and Mining Development Minister Winston Chitando said after a tour of the plant in June.
Dinson Group project director Wilfred Motsi says the development is a huge milestone in Zimbabwe’s manufacturing industry.
“We are going back to our glory days when Zimbabwe was known as one of the industrial centers of southern Africa because of the opening of the steel industry,” Dinson Group project director Wilfred Motsi told China’s state-run Xinhua news agency in June. .
Food insecurity and the environment
Despite promises of infrastructure development, including roads and housing, residents said there has been no progress. There are fears that the displacement will exacerbate the already fragile existence of the villagers. In August, the UN described food insecurity levels in Zimbabwe as “rapidly worsening following historic droughts”.
The chairman of the three affected villages, Chenjerai Mushore, echoed these concerns, highlighting the ongoing environmental challenges and the slow process of compensation.
Mushor claimed that the mine’s road repair project had led to dust pollution. He emphasized the urgent need to complete the road project to mitigate these risks.
Respond to concerns
DISCO spokesman Joseph Choco denied any wrongdoing and told VOA the company is committed to environmental compliance and is investing in modern sewage ponds and chimneys.
Since the villagers’ lands are now within the perimeter of the steel plant, Shoko said DISCO is also supporting 22 elderly people who are considered heads of households with US$200 a month for food until they are relocated. .
Shoko told VOA that six heads of households are also expected to be supported. Shoko added that young residents are given the opportunity to work instead of financial aid. Additionally, the company prioritizes these residents for employment as they await relocation, he said.
According to Mushor and Shoko, the mine is building new houses in the resettlement area to accommodate the displaced community.
Shoko further explained that compensation assessments involving government ministries are currently underway.
“The amount of the final compensation will be decided by these ministries after a thorough assessment,” Shoko concluded.
Chitando, Zimbabwe’s mines minister, did not respond to VOA’s request for comment.
Zimbabwe-Sino relations
Zimbabwe and China have maintained a strong alliance over the years. Relations deepened significantly when Western countries imposed economic sanctions on Zimbabwe during Robert Mugabe’s presidency. After international funding and investment declined, China emerged as a major supporter.
Under President Emmerson Mnangagwa, Zimbabwe and China raised their partnership to a strategic level in 2018. The move helped boost Chinese investment, particularly in extractive industries. However, the DISCO steel plant has been criticized by environmentalists and human rights activists for its potential negative impact on the environment.
Zimbabwe’s environmental standards agency, the Environmental Management Authority, or EMA, is working with the steel mine to address issues raised by activists and villagers, said the agency’s Environmental Education and Publicity Manager Amkela Sidang. He said the EMA is closely monitoring the implementation of the mitigation measures outlined in the previous environmental audit.
In response to VOA’s request for comment, the EMA said there are currently no environmental violations at the Dinson-Manhees plant. However, several months ago, a “monitoring of the progress of the implementation of the mitigation measures recommended by the Agency in the previous Environmental Audit of the environmental compliance at the same plant” was carried out.
The EMA said the steel company is addressing issues identified during the audit, including upgrading the access road from Dinson to Mavis and turning it into a concrete road to further reduce dust.
The company is applying for the necessary environmental licences, including for waste water disposal and air emissions, the EMA said, adding that it would continue to monitor the plant “to ensure that these are completed within the specified time frames and to ensure that the development of the project is carried out in the right way.” . that does not harm the environment or public health”.