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transfer mineral rights to the firm for it to start operations.
Essar Middle East and Africa resident director, Mr Firdhose Coovadia, said the Ministry of Mines and Mining Development was still studying the agreement that gives effect to the transfer of mineral rights from Buchwa Iron Mining Company to Zim Minerals.
He said Essar Africa was ready to commence operations at the giant steel firm once the outstanding issues were resolved and expressed optimism that production will start soon.
Mr Coovadia was speaking to journalists soon after he gave evidence before a Parliamentary Portfolio Committee on Industry and Commerce.
The committee chaired by Buhera North MP, Cde William Mutomba (Zanu-PF), wanted to know what was stalling resumption of operations after the signing of an agreement between the Government and the new investor early this year.
“We are still waiting for final communication from (the) Ministry of Mines in terms of formal communication, to date we have no formal communication, so we are waiting for communication on what their
feelings are regarding to transfer of BIMCO and the claims it owns,” said Mr Coovadia.
The committee allowed him to give his evidence in camera at his request after he said some of the issues he might raise were confidential.
Cde Mutomba latter told journalists that the committee was concerned at the non activity at the Redcliff mine.
Briefing the media, Mr Coovadia said he will not speculate on the delay by the Ministry of Mines and Mining Development, but said he had been assured that there was nothing that would stall the deal.
“On the positive side, all other ministries we have been dealing with have assured us that there is nothing major to worry about, the deal is continuing, it’s the paperwork they are working on, some of the claims are old and to get all the papers in order is very cumbersome,” he said.
“I take their word, they have missed (the) deadline and clearly we are anxious.”
There have been media reports that the Ministry of Mines and Mining Development was concerned that the Ministry of Industry and Commerce had unilaterally surrendered 80 percent of iron ore reserves to Essar Africa.
In his response, Mr Coovadia said what was critical was that all the improvements and assets in the country will continue to be owned and in the custody of the Government.
“There is nothing like a perfect deal. As long as the national objectives of the country are not compromised,” he said.
Mr Coovadia said his firm intends to invest massively and refurbish infrastructure to the tune of more than US$436 million.
He said they would refurbish Munyati Power Station to ensure consistent and reliable electricity while they will also work on Sebakwe Dam to ensure uninterrupted water supplies.
There will also be discussions with the Government on how to refurbish the railway line, he said.
Mr Coovadia said there will be a beneficiation plant in the country to ensure value addition of the iron to be extracted.
Online Reporter