India, Zim firms tie up

By Tawanda Musarurwa
INDIAN firm Bharat Earth Movers Ltd (BEML) and the Zimbabwean firm of SGI Group of Companies have formed a joint venture company for the marketing and distribution of BEML’s mining and construction heavy equipment in Zimbabwe.
The US$40 million joint venture is expected to unlock funds and expand production.
BEML managing director Mr Vellalore Rangsway said the transaction between the firm with SGI facilitated job creation and development of the local mining and construction sectors.
“This transaction is crucial and we hope it will go a long way in easing some of our challenges,” he said.
Indian government representatives, BEML India executives, SGI executives, Indian Embassy representatives in Zimbabwe, Mines and Mining Development Minister Obert Mpofu and the Chamber of Mines president Mr Victor Gapare witnessed the signing ceremony.
BEML is India’s leading manufacturer of heavy mining and construction equipment and, through SGI’s subsidiary, the Dozer and Dumper Company, will supply equipment locally.
Mr Rangsway said BEML equipment will be readily available on the market and there are negotiations underway with local banks for the equipment to be available on credit, which will assist Zimbabwe’s growing mining industry.
SGI chairman Mr Phibion Makoni said the Indian company’s commitment was a reflection of investor confidence in the country.
“We hope this transaction will be crucial in our efforts to boost economic development,” he said.
The Zimbabwean market has been facing shortages of such equipment or, when available, delivery has been characterised by long delays.
Earlier last month, Zimplats Ltd engaged Swedish mining equipment supplier Atlas Copco for the supply of equipment worth US$26 million for its Ngezi Phase two expansion programme.
This joint venture partnership comes at a time when the country has seen a number of foreign business delegations, including those from China, Iran and Germany, expressing interest in investing int the country’s projects through both direct cash investment and by partnering with local companies.