Chronicle Editor
Oliver Kazunga, Senior Business Reporter
THE revival of Zimbabwe’s once largest steel plant, Zisco, has started with the company now searching for consultancy services to develop its water and power master plans.
The latest development follows the recent approval by the Cabinet to have Kuvimba Mining House as the investment partner for the resuscitation of the Redcliff-based steel plant.
Kuvimba Mining House, which has both private and State shareholding, has been resuscitating closed gold mines and a case in point is the recent revival of Jena and Shamva operations.
The selection of Kuvimba as the winning bidder for Zisco was made after intense due diligence and meticulous screening of eight other prospective partners.
“Zisco has, therefore, embarked on a programme to resuscitate its iron and steel-making operations and is looking for companies, individuals, and consultants to carry out water reticulation master plan, and Zisco power plan for future operations,” said Zisco in a statement yesterday.
On the water reticulation master plan, prospective consultants should be able to come up with an integrated water master plan for Zisco and Buchwa Iron Mining Company (Bimco) to cover both domestic and industrial water supply.
Bimco is a mining entity with rights to iron ore claims for feedstock into Zisco operations. As part of work on the water master plan, an analysis of existing water usage at Zisco should also be carried out including analysing reliability or sustainability of water supply from Kwekwe Municipality as well as examining the current water sources to Zisco and Bimco and advising on adequacy, sustainability and reliability.
The terms of reference for the water reticulation master plan also covers aspects on assessment of other possible water sources and related infrastructure to bring water to Zisco and Bimco.
Recommendations should also be made on the way forward regarding water supply to Zisco and Bimco.
On the power master plan, the scope of work involves designing the electricity plan for Zisco and Bimco, and analysing the reliability of electricity supply from Zesa.
The scope of work also covers the analysis of existing power usage at Zisco and Bimco as well as critically examining the role of the power station as an emergency power supplier and exploring other possible electricity sources.
As part of Zisco’s power master plan, the way forward regarding electricity supply to Zisco and Bimco should also be established.
Once the largest integrated iron and steel plant north of Limpopo, Zisco ceased operations in 2008.
It is believed that the resuscitation of Zisco will go a long way in promoting economic turnaround as this will impact positively across the engineering, iron and steel value chain.
Due to Zisco closure, Zimbabwe is spending at least US$1 billion annually on steel imports. Over the years, because the defunct steel producer is a remarkable asset, it has attracted much investor interest from across the globe.
In 2011, Essar Africa Holdings, a unit of India’s Essar Group showed interest to invest US$750 million into Zisco but the deal collapsed for years later due to political bickering in the Government of National Unity that was formed by Zimbabwe’s three main political parties.
Three years ago, R & F of China tabled a US$1 billion bid but the deal failed to sail through. At its peak in the late 1990s, Zisco produced up to one million tonnes of steel annually and the entity was among Zimbabwe’s major employers employing more than 5 000 people while also contributing to the fiscus through foreign currency from steel exports. — @KazungaOliver
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