The Herald newspaper says Chinese companies will build new coal mines and three thermal power stations in the Zambezi valley on the Zambian border.
In exchange, Zimbabwe will provide China with chrome. Zimbabwe's Vice President, Joyce Mujuru, attended the signing ceremony in Beijing.
Zimbabwean industry suffers from hours of power cuts every day.....
President Robert Mugabe, who has been shunned by Western countries in recent years, embarked last year on a policy of strengthening ties with China.
Chinese companies are also to rebuild Zimbabwe's rail network and provide trains and buses
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