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Essar Holdings is reportedly reluctant to continue pumping more money into NewZim Steel, which is yet to iron out mining rights from the Government.
The development saw Dr Mpofu and Prof Ncube trading accusations over delays in the resumption of operations nearly a year after the signing of the deal.
This prompted the Industry and Commerce Parliamentary Portfolio Committee to summon the two ministers to appear before it on Monday next week to explain what was stopping Essar Holdings from commencing operations.
However, Dr Mpofu and Prof Ncube held a meeting yesterday. “Yes, we met and agreed that we will meet again soon and invite Essar Holdings management to a conversation on how we can ensure that the company operates smoothly,” said Prof Ncube in a telephone interview.
“The issue is we transfer mining claims owned by NewZim Steel. We did not set any dates because we first need to liaise with Essar Holdings. What I can say is that the matter is being treated with urgency, as you know that the workers have not been paid for nearly a year since the agreement was signed.
“As the Government, we are doing everything we can to try and bring this issue to finality.”
Dr Mpofu confirmed meeting Prof Ncube and concurred that urgent measures needed to be taken to bring NewZim Steel to its feet.
“The most important thing is that we are in consultation with the Ministry of Industry and Commerce over this issue. Cabinet has directed us to look at the outstanding issues with regards to the agreement with the view of reviewing the matter,” he said.
“Essar Holdings will have to engage us on the mineral title or special grants with a view of addressing some of the concerns that the Ministry of Mines raised. However, we are hopeful that we will have an amicable outcome.”
Last week, the chairperson of the Industry and Commerce Parliamentary Portfolio Committee, who is also Buhera North MP, Cde William Mutomba (Zanu-PF), expressed concern over delays in resuming operations at NewZim Steel saying the development was a betrayal to President Mugabe and the people of Zimbabwe.
Cde Mutomba said his committee was keen to understand why the issues stalling progress were not first addressed by relevant Government departments before the signing of the deal.
It is about 10 months since the commissioning of NewZim Steel and not much has been done in terms of preparations to resume production.
The Redcliff based company owes its workers about $12 million, a debt it assumed from the defunct Ziscosteel. The company is reported to have spent millions of dollars in wages since March last year without production.
President Mugabe commissioned the $750 million NewZim Steel (Pvt) Ltd and NewZim Steel Minerals (Pvt) Ltd deal last year in August.
The commissioning of the new steel making company rekindled hopes of the revival of the dormant giant steel plant which has been idle since 2008 when it stopped production.
Under the deal, Essar Holdings took over 60 percent controlling stake in NewZim Steel (Pvt) Ltd, leaving the Government with 40 percent.
The Government also has 20 percent stake in NewZim Minerals (Pvt) Ltd, formerly Buchwa Iron Mining Company (Bimco) while Essar Holdings owns 80 percent.
In his address during the commissioning ceremony, President Mugabe said once operational, NewZim Steel was going to breathe life back into the surrounding communities of Redcliff, Kwekwe and Gweru.
The new company was expected to create more than 5 000 direct employment at both Redcliff and Chivhu projects.
Essar Holdings committed itself to retaining the defunct Zisco’s 3 500 workers.
Online Reporter