ZimAlloys courts Indian investor

Munyaradzi Musiiwa Midlands Correspondent
Gweru-based ferrochrome producer Zimbabwe Alloys is on the verge of sealing a deal with an Indian company, which will see it scaling up production and switching on its blast furnaces.In an interview over the weekend, Midlands Minister of State for Provincial Affairs Jason Machaya said the two parties were discussing modalities of taking over the chrome smelting company and would soon scale up production once a deal was concluded.

Minister Machaya said the Indian company would take over operations at ZimAlloys, which has been limping since Government imposed a ban on the exportation of chrome ore.

Falling prices of chrome also affected operations.
“As a province, we are concerned about the state of industry and as Government we are creating a conducive environment to attract investment,” said Minister Machaya.

“I am happy to announce that as we speak, ZimAlloys is in negotiations with an Indian company, which I cannot name at the moment for confidentiality reasons, with a view of resuming production at the company.”

Minister Machaya said the company was expected to inject funds into ZimAlloys. He said the revival of Zim- Alloys would contribute significantly towards employment creation and help meet the $3 billion mineral export target.

ZimAlloys judicial manager Mr Reggie Saruchera confirmed that the firm had courted a new investor who will soon take over. He said a deal could be concluded within three months.

“While I am not at liberty to identify the new investor in fear of jeopardising the deal, we are in negotiations with these investors and we are expecting to conclude the deal within the next two to three months,” said Mr Saruchera.

“ZimAlloys is my priority at the moment because I have revived the Zimbabwe Mining and Smelting Company (ZIMASCO) and my focus is now on this deal. We are definitely going to resuscitate ZimAlloys.”

Benscore acquired ZimAlloys from Anglo-American company in 2005. It downscaled production and switched off its blast furnaces and started processing dumps.