Mozambique, Essar agree on export pipeline

coal from Zimbabwe to the port of Beira.
The Indian conglomerate, which bought a controlling stake in Ziscosteel in March, intends to export excess iron ore from Zimbabwe, apart from revitalising the defunct steelmaker.
Ziscosteel runs Ripple Creek Mine, which has abundant iron ore, deposits, and is also exploring newly discovered reserves around Chivhu.
According to the Steel Business Briefing, Essar Africa Holdings intends to export excess iron from Zimbabwe via Mozambique.
“Essar intends to mine raw materials to supply
Zisco’s steelworks, but may eventually export surplus
ore via Beira port in neighbouring Mozambique,” it
said.
“A spokesman at Essar confirms with SBB that the firm has signed tentative agreements with Mozambican port authorities to develop a 20 million tonne per year iron ore terminal,” said SBB.
Essar, SBB said, would also similarly relay 20
million tonnes of coal annually from Zimbabwe to Mozambique.
It said the company was also negotiating
with Zimbabwe over possible use of rail transport for export.
Essar, which has not yet started working at the Ziscosteel plant, is asking Government for guarantees of consistent power and water supplies, in addition to tax concessions.
Plans by the company to take over mining group RioZim, which holds significant coal reserves near Zisco Steel, hit a snag as the deal violated the country’s indigenisation laws.
Under the Ziscosteel takeover deal, Essar pledged to inject US$750 million in fresh capital to revitalise the company.
The company will also settle Ziscosteel’s debts estimated at US$40 million.
Before its collapse in 2000, Ziscosteel was the largest integrated steel works in Africa, with capacity to produce one million tonnes of the product annually.
It was also a major employer, particularly in the Midlands province, and sustained many downstream industries throughout the country.
Essar Africa Holdings is a subsidiary of the multinational conglomerate Essar Group of India, which is a major player in the steel, oil, gas, power, communications, mining, shipping and logistics industries.
The recapitalisation of Ziscosteel is expected to create jobs and boost the country’s export earnings. – New Ziana.