NewZim revival raises hope

economic transformation among the firm’s workers and the community around Redcliff.
It is early days yet, but workers and residents are confident the vicious storm that sent NewZim Steel on its knees has cleared and the sun is rising.

They contend the rebirth of NewZim will catalyse economic growth, job creation and development of critical infrastructure such as roads, schools and hospitals in a city that had lost its lustre when Zisco went down.
This is particularly the feeling considering NewZim Steel was probably the biggest firm in the Midlands Province, let alone Redcliff and Kwekwe.
Other notable firms in these towns are Steel Makers Zimbabwe and Sable Chemicals, which to an extent depended on NewZim Steel, which supplied them with steel products (Steel Makers) or oxygen (Sable).

Mr Thomas Mpofu, a resident of Torwood in Redcliff, blamed the demise of health facilities in the dormitory town on the collapse of Zisco.
“If the company returns to its old glory this would help us a great deal in terms of infrastructure in our community, for instance the hospital facilities.
“These facilities will become functional once again. Currently, our nearest hospital is no longer functional and is now a habitat for owls,” he said.
Women resident in Redcliff said that the revival of NewZim would provide decent employment to their husbands and children and uplift their lives.

Mrs Loveness Chimuka, whose husband was employed by Zisco, said he had resorted to the risky and illegal gold panning to sustain the family.
“Otherwise how else could we feed our five children, send them to school, buy food and clothes for them let alone pay rentals,” said Mrs Chimuka.
Most such families had to live in small and squalid houses, as they could not afford cleaner and spacious housing when Zisco started ailing. For the few who were lucky to get employment elsewhere, dependants increased.

Unconfirmed reports also pointed that the resuscitation of the steelmaker would enable the revival of Kwekwe-based steel fabrication giant, Lancashire Steel.
NewZim workers have yet to receive a dime from the new paymasters, but remain unreservedly committed to the inevitable renaissance of the steel giant.
Over 1 500 workers kept reporting for duty although at times they went for months without salaries, but remained hopeful things would get better.
Although NewZim Steel is yet to recall any of the former workers who either crossed borders to seek greener pastures or simply disengaged after losing hope, the current workers believe the worst is now behind them.

New shareholders in NewZim Steel, Essar Africa Holdings – a subsidiary of Essar Global – pledged to clear the US$22,5 million in salary-related arrears, which the Government owed to former and current workers of the firm.

Commenting on condition of anonymity most workers said while they have to meet financial needs at a time their salaries have not started coming they strongly believe management will soon honour their promises.
“These guys have only been here for a short while. So we cannot say they have failed anything. We are hopeful things will fall in place soon,” said a representative of workers who is a boilermaker at the firm.

During a visit to Redcliff management would not discuss the plan of action, but admitted the NewZim Steel blueprint had been completed.
NewZim Steel chief executive Mr Alex Gowo said that while he was aware that a blueprint had been completed he was yet to study it.
“Until I have seen the plan and read what it says I cannot say what sort of impact this will have on the company and surrounding communities. If I comment on that it would be merely speculative,” he said.

Admittedly, the blueprint for the revival of NewZim Steel would most likely be different from the old model and systems that were used at Ziscosteel.
But the visit to Redcliff revealed workers had every reason to believe the good times were about to roll. Already, work is underway to determine sections of the plant that can be rehabilitated and returned to life.

In that regard, engineers are working on salvaging blast furnace number three and four and the coke ovens while various other housekeeping work has also started across the entire complex that houses the former steel giant.

And for NewZim Steel’s foremost associate NewZim Minerals (formerly Buchwa Iron Mining Company) is ready hit top gear. The firm has already started mining of limestone, a key component in steel making.

However, certain workers who, while their belief for a better future was self-evident, feel employers have taken a bit too long to address their monetary needs, as they have to buy food, pay rentals, rates and schools fees.

And nothing is further from the truth that the revival of NewZim Steel will boost the Redcliff economy through better spending power of workers and their dependants while new and existing firms will also benefit.

Essar emerged as the eventual winner of Government’s stake in Zisco (NewZim) after meeting the conditions prescribed for the preferred suitor.
Indian investors agreed to take over Government’s US$340 million debt in a record investment worth about US$750 million including fresh capital injection.

They have also pledged to assist in rehabilitation of the country’s rail infrastructure, construction of power plants and development of new iron ore beneficiation plant in what could cost an estimated US$4 billion.

Essar’s investment is expected to retain over 3 500 jobs at NewZim Steel and NewZim Minerals and create another 3 500 at iron ore value adding plant that the Indian firm plans to build in Chivhu in the near future.