adminpossibly involve the appointment of at least two senior group executives from India to assist the current Essar Africa head, Mr Firdhose Coovadia, who manages the group’s steel and oil operations in the Middle East and Africa. The Economic Times of India quoted sources familiar with the development.
Essar bought 60 percent of the Government’s stake in Zisco, now NewZim Steel, and 80 percent iron ore reserves held by Buchwa Iron Mining.
But so far no progress has been made because the local authorities are yet to transfer the mining rights to Essar.
Essar spokesman said Mr Steven Din had been appointed to NewZim Steel management but did not elaborate on his exact role.
“Essar is still proceeding with the transaction closure,” said the spokesman. “We remain committed to our plan. Essar is strengthening the team at Zimbabwe.”
While this reshuffle may not lead to any change of guard, it indicates the seriousness of the Essar Group to resolve the delay in transferring control of the mine that holds more than 500 million tonnes of iron ore reserves, vital for its steelmaking operations in Zimbabwe and Canada.
The delays in Zimbabwe have been mostly due to differences of opinion about the valuation and mining operations of the company.
Last week, Industry and Commerce Minister Professor Welshman Ncube said although his ministry led the sale of Zisco, it had no power to transfer the mining rights
to the new company.
“It is not my ministry which is responsible for every aspect of the deal,” he said.
“In relation to tax holidays, there is an Memorandum of Understanding between Essar and the Finance Minister. In relations to electricity supply, they have an MoU with the Ministry and Energy and this should be the same with the Ministry of Mines.”
Finance Minister Tendai Biti told journalists last week that the delay in transferring the mining rights to Essar was “sending the wrong signal to investors”.
Essar has stopped paying the workers, arguing it was no longer sustainable to continue paying them as the plant remained closed. — Business Reporter/Economic Times.
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