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Harare Bureau
THE new Zanu-PF Government is expeditiously working on the resuscitation of the ailing steel giant, NewZim Steel (Pvt) Ltd in Redcliff, formerly Ziscosteel, a Cabinet Minister said. In an interview, Mines and Mining Development Minister Cde Walter Chidhakwa said the Government will soon announce a position on the impasse with Essar Africa Holdings, NewZim Steel’s parent company, over mineral rights at NewZim Minerals (Pvt) Ltd, formerly Buchwa Iron Mining Company (Bimco).
NewZim Minerals (Pvt) Ltd owns iron ore reserves at Buchwa in Mberengwa and Mwanesi Ranch near Chivhu.
Cde Chidhakwa said negotiations between Government and Essar Africa Holdings on the mineral rights issue were going on well.
He, however, was non-committal on the exact time the Government expected to conclude its engagements with Essar Africa.
Cde Chidhakwa revealed that the two parties, however, had made a breakthrough on the mineral rights at Buchwa.
“We shall be announcing a position soon on the Bimco issue. Negotiations are going on well and once we conclude, we will announce the position.
“We have made significant progress on the Buchwa issue and we are working to find a way of dealing with the matter in a manner that ensures the company continues to operate,” he said.
Cde Chidhakwa reiterated Government’s commitment to ensuring that NewZim Steel resumes operations as the giant steel manufacturing firm was a major player in the country’s economic development.
“We have made a joint commitment with the Minister of Industry and Commerce, Cde Mike Bimha, to ensure that NewZim Steel resumes operations.
“At the moment I cannot give the exact timeframe we expect to conclude the negotiations because the matter is now under the parent ministry, Ministry of Industry and Commerce,” said Cde Chidhakwa.
Government and Essar Africa Holdings entered into a deal in 2011 under which the India-based firm acquired a 60 percent controlling stake in NewZim Steel (Pvt) Ltd, leaving the Government with 40 percent.
Under the same deal, Government also has a 20 percent stake in NewZim Minerals (Pvt) while Essar Holdings controls 80 percent.
The deal failed to take off after Government insisted on renegotiating the shares in NewZim Minerals (Pvt) Ltd citing some anomalies in the initial agreement.
Following the impasse, management at Essar Africa Holdings have withheld further funding to NewZim Steel in a bid to press Government to finalise the takeover deal.
Londile Moyo
Bongani Ndlovu