admin
Michael Magoronga Midlands Correspondent
ZimCoke (Pvt) Limited, a company which took over a coke making plant at Ziscosteel, is set to invest about $75 million into Hwange Colliery’s coke division. ZimCoke is in the last stages of taking over a coking plant at the former steelmaking giant, Ziscosteel, with renovations set to kick-start at the coking plant.
ZimCoke took over a coke oven battery plant segment within Ziscosteel in a $133 million deal. At full capacity, the project is expected to produce 500 000 tonnes of coke annually, for both local usage and the export markets. The company also undertook to take over a $225 million debt owed by Ziscosteel to a German bank, KFW.
In an interview, ZimCoke consultant Mr Eddie Cross, said the company seeks to enhance coke production in the country hence the investment into Hwange Colliery. “We intend to invest $75 million into Hwange Colliery coke division so that we bring them into production. We also will invest about $12 million into ZimChem to enable the company to process all the product from coke to operations,” said Mr Cross. He said the company was in the final stages of taking over the KFW debt before moving on site for renovations.
“We are in the final stages of taking over the debt with KFW. Thereafter our technicians will move on site maybe in March to commence refurbishment of the new coking company,” said Mr Cross.
ZimCoke (Pvt) Ltd and Ziscosteel signed an agreement of sale in 2017, whereby ZimCoke acquired the coke-making assets of Ziscosteel, consisting of the plant and machinery, land and buildings and associated infrastructure of coal handling and rail wagons.
ZimCoke chief executive officer Bill Moore, during the ground breaking ceremony last year, said the resuscitation of the plant will begin with the operationalization of the Coke Oven Battery Number 3. The revived coke oven plant is expected to employ 500 people, while the full resuscitation of ZiscoSteel is expected to create 3 000 jobs.
Online Reporter