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NewZim Steel (formerly Ziscosteel) is set to lose equipment worth millions of dollars at an auction to cover a debt accrued in a coal supply deal with Hwange Colliery Company.
The auction will take place after the High Court ordered the equipment to be attached to clear a debt of more than US$1,4 million.
The equipment to be auctioned on Saturday March 29 in Kwekwe includes iron ore wagons, 10 soaking pits which comprise of door carriage and motors on them, an Ingot Buggy with an electric motor that used to carry at least five tonnes of iron ore and three overhead cranes.
It also includes ingoing and outgoing roller tables, a cogging mill with 5 000 horsepower motors and a locomotive which is capable of towing 320 tonnes.
According to a source, potential buyers are viewing the equipment that is in Kwekwe.
Industry and Commerce Minister Mike Bimha said he was not aware of the development. “I do not know anything about that and I am in India where I am just coming out from a meeting,” he said. “The New ZimSteel deal is on and I cannot divulge more information surrounding that.”
Minister Bimha recently said Government fulfilled outstanding obligations that had been stalling the revival of Zisco and awaited new majority shareholder Essar Africa to meet its end of the bargain.
Government agreed in March 2011 to sell 54 percent of its shareholding in Zisco to Essar to enable revival of the firm, but a number of sticking issues have stalled the plans.
During its peak, Zisco had the capacity to produce more than one million tonnes of steel per annum and employed up to 4 000 workers before its financial plight rapidly deteriorated leading to its closure in 2008.
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