admin
A team of engineers from Essar Africa Holdings will move into Zisco Steel (now New Zim Steel) today to begin preparatory work for resuming operations, Parliament heard yesterday. Indian steel giant Essar Holdings acquired a 54 percent stake in Zisco Steel in 2011 but delays in transferring mineral rights to the company have stalled resumption of operations.
Industry and Commerce permanent secretary Ms Abigail Shonhiwa said the team would also include experts from the former Zisco Steel. “As we speak ,today we are expecting the initial team from Essar to be on the ground in Redcliff tomorrow. We agreed that there is need to discuss with the workers and creditors on how operations can start,” she said.
“So in that regard, we have been advised by the investor that they got board approval to be on the ground to discuss among other things employee salaries and working capital for the plant rehabilitation.”
Ms Shonhiwa was presenting oral evidence before the Parliamentary Portfolio Committee on Industry and Commerce.
She said Essar resident director for Middle East, Africa and Turkey, Mr Firdhose Coovadia had already arrived in the country to supervise the work which was about to commence.
All outstanding issues stalling implementation of the deal were being sorted out, she said, adding the ministry was aware of the difficulties workers in Redcliff were going through hence movement to expedite resumption of operations.
“The critical thing is that we will be on the ground at Zisco and operations will start.
“We expect that with this development, problems affecting workers will be taken care of,” she said.
Earlier on Portfolio Committee chairman Buhera North Legislator Mr William Mtomba had expressed concern at the slow pace at which the deal was being implemented. “We are very much concerned and we really do not know what is taking place,” he said.
Essar through New Zim Minerals owns 80 percent of iron ore claims at Buchwa Mine, Ripple Creek and Mwanesi Ranch, while the government owns 20 percent.
Once implemented, the investment is expected to turn around the fortunes of Redcliff town and also improve the welfare of over 3 500 workers left jobless after operations ceased.
Zisco Steel, once the biggest integrated steel works in Africa, north of the Limpopo stopped operations in 2008, choking under a $340 million debt and other viability problems. — New Ziana
Online Reporter