Bimha clears air on Essar deal

operations.
In a recent interview, Industry and Commerce Deputy Minister Mike Bimha, said reports claiming that the deal between the Government and Essar had collapsed were false.
The ministry, he said, had signed the deal on behalf of Government with the investor being fully aware that the finer details related to other ministries would be handled by the relevant departments.

“Our mandate was to look for a partner, but we could not encroach on other ministries’ mandates as that was left to those departments to enter into discussions with the investor,” said Deputy Minister Bimha.

“The agreement we signed recognised that once the broad parameters were agreed, there were issues that would be discussed further.”
Some of the issues include railway infrastructure, availability of water and mining claims, all of which fell under various ministries.

“So, the delay in resumption of operations has more to do with us and not the investor.
“These things take time to conclude,” said Deputy Minister Bimha.

On allegations that his ministry had surrendered 90 percent of iron ore reserves to Essar Africa Holdings, the deputy minister said people who did not understand the nature of the agreements between the two firms were making the claims.
“New Zimbabwe Steel is a partnership between Essar and the Zimbabwean Government,” he said.

“So how can one say we have surrendered iron ore reserves to Essar when there is a new firm constituted by two entities?”
Meanwhile, Mines and Mining Development Minister Obert Mpofu has said claims by Bulawayo South MP Mr Eddie Cross that Marange diamonds should be nationalised were misplaced.

Minister Mpofu said it was critical to note that the gems at Marange already belonged to the Government through the Zimbabwe Mining Development Corporation.
ZMDC has entered into joint ventures with foreign firms that have invested in the extraction of diamonds at Chiadzwa.

“Marange diamonds are Government-owned and you have one MP targeting those that are already Government owned for nationalisation, leaving those owned by foreigners who are not contributing meaningfully to the fiscus,” said Minister Mpofu.

On chrome exports, Minister Mpofu said the ban would remain in force until firms added value by building smelting plants.
The minister said he was surprised the Chinese were exporting chrome on claims that were allocated to locals.

This, said the minister, meant that the holders of the claims were contracting the Chinese to export the chrome.