admintakeover of the ailing steel giant.
The Mauritius-based company took over Government’s shareholding in Ziscosteel in a deal worth over US$750 million.
Industry and Commerce Deputy Minister Mike Bimha said this in the House of Assembly while responding to questions on when the company would resume normal operations.
“Essar as a company is a serious investor not just coming for the short-term but for the long haul.
“The decision to invest in Zimbabwe was done with due regard to what was in store like taking over the debt,” he said.
Deputy Minister Bimha said there were a lot of issues to be addressed before normal operations resume.
“There was also need for engagement for certain institutions and agencies for certain guarantees that once they start they will not stop.
“At the moment I can say we are happy with the negotiations and the responses we are getting,” he said.
Essar wanted to get guarantees of uninterrupted supply of water, electricity and coal before they resume operations.
Deputy Minister Bimha said there was also issues to do with whether the company would source iron ore from Buchwa or in Chikomba.
“There are a lot of issues that have to be addressed but we are happy with what has been done so far, let us not forget where Zisco was before,” he said.
Essar pledged to take over Government’s US$250 million debt and invest in the rehabilitation of blast furnaces and other infrastructure.
Meanwhile, National Housing and Social Amenities Minister Giles Mutsekwa said Government was handing over houses built under Operation Garikai/Hlalani Kuhle to local authorities for the completion of water and sewerage works.
“The houses and building where constructed without ensuring that there was infrastructure first. I want to inform members that Government is taking corrective measures to ensure there is return to normalcy.
“Houses will be handed over to local authorities to ensure that the inhabitants live in houses that go along with what is expected of any urban accommodation,” he said.
Online Reporter