adminrequirements at Ziscosteel.
The Asian steel giant this year bought a controlling stake in Ziscosteel, but work at the plant has not yet started as it is asking Government for guarantees of consistent power and water supplies, in addition to tax concessions.
For now, restoring Munyati station with capacity to generate 120 MW would be sufficient to kick start operations at Ziscosteel while significant power would still be required to jolt steel output.
About US$2 million would be required to restore the coal-fired station.
Industry and Commerce permanent secretary Ms Abigail Shoniwa said Essar and Government were still pursuing other power generation opportunities.
“They (Essar) are interested in reviving the Munyati power station owing to its proximity to the plant.
“Obviously power from Munyati would not be enough to run the plant at full throttle. So there are a number of other opportunities we are pursuing,” she added.
Under the Ziscosteel takeover deal, Essar, apart from pledging to sink US$750 million into the local steel maker, also said it would build a power station with capacity to generate over 1 000 MW.
The company will also settle Ziscosteel debts estimated at US$40 million.
Essar is also planning to build a slurry pipeline to transport iron ore and coal from Zimbabwe to the port of Beira in neighbouring Mozambique.
Essar is a diversified concern with interests ranging from telecommunications to construction.
When the Ziscosteel plant is revitalised, production is expected to shoot to 2,5 million tonnes over the next three years.
Before its collapse in 2000, Ziscosteel was the largest integrated steel works in Africa, with capacity to produce one million tonnes of the product annually.
Revival of the local steel maker is expected to create jobs, particularly in the Midlands province as well as supporting down stream industries. – New Ziana.
Online Reporter