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This was after Mines and Mining Development Minister Obert Mpofu had called for the review of the agreement, saying it was not in tandem with the country’s indigenisation regulations.
“We are now working on the implementation matrix of the deal with Essar Holdings. We have communicated with the company’s board, which is expected to hold a meeting on 20 October to finalise the issue. We are waiting for that,” said Prof Ncube.
“We have done the implementation requirements on our part and we are waiting for their board to meet so that we present the report to them. It is more than a year since this deal was signed and we are to blame for the delays as the Government because we have been changing goal posts over the issue.
“Essar people were reluctant to go ahead with the deal because of the dispute of iron ore concessions. The issue was debated in Cabinet and a resolution was made that we should stick to the original agreement if the deal was to succeed. Now they have recommitted themselves to the deal.”
The deal was first signed in August 2011 giving Essar 60 percent control of the new company New Zimsteel, while the Government had 40 percent.
As part of the deal, Essar was also awarded 80 percent stake ownership of NewZim Minerals, formerly Buchwa Iron Mining Company, with Government holding the remaining 20 percent.
Essar suspended workers’ salaries in May to press the Government to finalise the agreement.
The deadlock broke after Essar’s representatives met President Mugabe over the issue.
The Redcliff-based company owes its workers about $12 million, a debt it assumed from the defunct Ziscosteel.
Once operational, New Zimsteel is set to breathe life back into the surrounding communities of Redcliff, Kwekwe and Gweru.
The new company was expected to create more than 5 000 jobs in direct employment at both Redcliff and Chivhu projects.
Essar Holdings committed itself to retaining the defunct Zisco’s 3 500 workers.
Online Reporter