(AGI) - Maputo, 21 set. - Australian Baobab Resources, will build in Mozambique, in the central province of Tete, a steel mill valued at USD770 million, the provincial governor, Paulo Auade, announced Tuesday. The plant, with an annual production capacity of 500,000 tons of steel rebar, will be installed in the Free Industrial Zone of Revuboe', recently created by the Government. This will be the first steel plant since this Southern African nation of 23 million people became independent from Portugal in 1975. An announcement posted on the company's website indicates that the plant should be operational in January 2020 and will produce direct reduced iron (DRI). To this end, the Baobab Resources has created a subsidiary, Capitol Iron & Steel Ltd, which is participated by International Finance Corporation ( 'IFC'), which holds 13% participatory interest. Other partner in the project is China's Metallurgical Corporation of China ( 'MCC'). Baobab Resources plc is an Australia-based company engaged in the investigation and analysis of geological opportunities in Mozambique. The Company has five 100% owned Subsidiaries que include Maputo Minerals Limited, Mocambique Resources Limited, Capitol Resources Ltd. Baobab Mining Services Pty Ltd and Mayfair Mineral Exploration Lda. Estimates Indicate que there 300 million tons of iron ore. (AGI) .