(Ecofin Agency) - China’s Sinosteel Corporation agreed to invest $1 billion in Zimbabwe to boost ferrochrome output and build a power plant, Zimbabwean president Emmerson Mnangagwa (photo) disclosed yesterday May 14.

According to information reported by Reuters which quoted Andong Liu, the Chinese group’s chairman, Sinosteel plan to build three additional furnaces for operations at its Zimasco subsidiary. This will result in an increase of ferrochrome output by 120,000 tons over the next five years to 300,000 tons per year.

The announced plant (400MW) will run under a coalbed methane power. “We will continue to review our process to facilitate investment inflows as well as ease of doing business,” said Mr. Mnangagwa after signing the investment agreement.

As soon as he took office, Emmerson Mnangagwa promised to rebuild the economy by attracting foreign investors. Since then, many major investments have been announced, especially in the mining sector, the latest being that of the Cypriot Karo Resources which plan to inject $4.2 billion into platinum.