adminZimsteel, expectations were for a new lease of life for the regional giant.
Politicians, industrialists and workers at large welcomed the multi-million dollar deal with joy and heightened optimism of a turnaround of the country’s economic fortunes. There is no doubt that all stakeholders were anxiously waiting for the new investors to move in and rehabilitate the steel giant whose operations are definitely going to change the lives of many people in this country.
It is disheartening that bureaucratic bungling appears to be scuttling what appears to be minor paperwork. This concerns details surrounding some iron ore reserves that the Ministry of Mines and Mining Development claims were not properly parceled out. There was also talk that at one time, the claims had been given to a former employee of Ziscosteel.
The reserves are believed to be the largest in the world and are held by Buchwa Iron Mining Company now called New Zimbabwe Minerals.
On its part, the Mines Ministry maintains that the Ministry of Industry and Commerce erred in handing over the vast iron ore reserves to the Indian conglomerate.
Essar on the other hand has maintained that it will not commence operations until the Government has transferred the mineral rights to the firm as part of the agreement they signed in August this year.
It would appear that the two ministries are playing the blame game and in so doing delaying in the resumption of operations. There is need for both parties to put their heads together in the national interest so that they map the way forward.
Clearly, there were some slip ups in the way the claims were given to an individual, but that has been resolved and what is required now is to look at the bigger picture and no effort should be spared to ensure that the steelworks are back in operation.
Resuming operations will no doubt make New Zimsteel the fulcrum of the manufacturing industry in Zimbabwe and this will have a multiplier effect in downstream industries resulting in job creation that this country so desperately requires.
There is heightened optimism, however, that the issues stalling the deal will be addressed at the earliest opportune time to ensure that the wheels are back on track.
Set deadlines have been missed, and the bureaucrats appear unmoved as they maintain that procedures have to be followed; well and good but this should not take forever. The thrust of the whole initiative has been to revive the fortunes of what was one of the leading steelmakers in the region, and we should never loose sight of that.
It is heartening to note that even the Essar executives have admitted that there is nothing like a perfect deal, but it should never compromise the national objectives.
Concerns have been raised regarding iron ore exports extracted from Zimbabwe, and once again Essar has maintained that it would build a beneficiation plant in this country to add value to the product. The iron ore will not be exported in its raw form and would be beneficiated by between 500 and 600 percent and this would obviously be excess to our requirements.
The country has to look objectively at the Essar deal and the sooner we realise that we need investors more than they need us the better for us all.
There is a tendency that we at times subconsciously frustrate investors in the belief that we are carrying out due diligence, and before we know it they would have moved elsewhere.
The fact that Essar has committed to invest more than US$436 million for infrastructure, power generation and refurbishing our railways, is an indication that they share a vision for a better Zimbabwe.
As we anxiously await the awakening of the steel giant, we do so with added interest and what this means to the turn around efforts for this economy.
There are serious considerations for the value chain as an entire community in the Midlands was almost at a standstill when Ziscosteel ceased operations in 2008.
Online Reporter