adminThe Redcliff-based steel producer suspended paying its workers in March this year following statements attributed to Mines and Mining Development Deputy Minister Gift Chimanikire that his ministry was not going to give NewZim Minerals iron ore claims at Mwanesi in Chivhu.
He said there was need to avoid a monopoly by giving other players an opportunity to mine iron ore at Mwanesi.
Under the original deal, Essar Group who are the new investors would take 53 percent of the NewZim Steel (former Ziscosteel’s manufacturing arm) and 80 percent of NewZim Minerals (former Buchwa Iron Mining Company mining arm) while the Government acquires the remaining shares in both firms.
In separate interviews, some of the workers who preferred not to be named said they started receiving the salaries last week.
They said their company had not indicated when the full salaries would be paid.
“We have been paid 25 percent of our full salaries and we are not sure when the balance will be paid in full. The money was not deposited into our bank accounts; we received it directly at the company’s pay point,” said one of the workers.
Another worker also said the salaries had been staggered.
“Some of the grades are yet to receive their salaries but we are told they will be paid before the end of the month. And like everyone else, they will receive 25 percent of their salaries and this has seen some earning as little as $50.”
NewZim Steel acting chief executive officer Mr Alphas Mahachi refused to comment saying he was not allowed to talk to the Press.
Operations at NewZim Steel are expected to resume next month after Cabinet guaranteed the investor that the initial deal signed between Government and Essar Group stands.
The move brings relief to more than 3 000 workers who have gone for several months without pay after the suspension of salaries.
The Government signed a $750 million deal with the global steel conglomerate ceding part of its stake to the Indian firm.
Under the agreement, Essar was expected to pay off Zisco’s debts that had ballooned to over $300 million before the firm became NewZim Steel.
Online Reporter