Zisco revival timelimes set

Mukudzei Chingwere in Redcliff

The road to full capitalisation and revival of Kwekwe-based integrated steel behemoth, Zisco, is well on course and management has now set timelines which will see segments of the business coming back on stream by end of next month.

Zisco board chair Engineer Martin Manuhwa said the other segments would come into operation next year and the rest in 2025.

Eng Manuhwa said this when he spoke to The Herald after a tour of the company by Vice President Dr Constantino Chiwenga yesterday where he got an appreciation of yet another milestone delivery of the Second Republic.

Zisco recently got a new lease of life when Cabinet roped in diversified resources group, Kuvimba Mining House (KMH), as a strategic investment partner for the steel maker.

Government’s determination to finally revive the concern after previous failed attempts in the First Republic, comes as the Second Republic gives fresh impetus to the iron and steel industry which is seen as key catalyst for economic revival.

Steel is important for major economic sectors like mining, agriculture and construction.

Eng Manuhwa said the envisaged recovery, which will ultimately see Zisco turning into a US$1,1 billion business at the end of a five-year business cycle, was however a complex operation which needed due diligence and the best globally available technical input.

To this end, Zisco, thanks to Kuvimba, had enlisted the services of service providers of international repute to make sure that the revival was not bungled.

Once back on stream, Zisco will join Dinson Iron and Steel Company (Disco) in Manhize, to form the backbone of the country’s iron and steel industry.

“What we have done is to make a projection, a plan and a strategy of the revival. You remember when Cabinet authorised the resuscitation, we had to do a strategic plan on where are we coming from, where are we going, how much does it cost,” said Eng Manuhwa.

“The cost issue is very important and what came out was that we need about US$30 million to resuscitate the iron ore mining business. We needed roughly about US$2 million to restart the limestone mining business and these are the low hanging fruits.

“We then need US$300 million to restart the steel plant. We hope to complete the steel plant resuscitation by end of 2025 while for the limestone, we are targeting to be producing 20 000 tonnes next month and we will escalate that to 80 000 tonnes per month.

“In mining we have commenced studies which should be complete in three months and we hope to start production at Ripple Creek in the first quota of next year and for this a budget has already been secured by KMH for Zisco Steel’s use. So far Kuvimba has committed US$30 million up to January for the resuscitation of the mining business and then US$1 million for the limestone.

“The total amount required for the total resuscitation eventually is US$300 million which will then be used to create a value of about US$1,1 billion over a period of five years,” he said.

Zisco’s operations are integrated and comprise iron ore mining and the steel making business.

The steel making business is the most complex and is the one that Government is primarily concerned with to cut the country’s estimated import bill of up to US$1 billion worth of steel products per annum.

Recently, the country has undertaken major construction projects including Kariba expansion and Hwange Unit 7 and 8 which had a huge steel uptake and Zisco is looking at these as lost business opportunities.

In brief remarks after the tour, VP Chiwenga said Zisco is important to the country’s development trajectory and implored parties to the revival to make sure they expedited the process at the same time adhering to the best possible quality on the job.

“We have come to hear what plans the board and management of Zisco have now put in place with their investor Kuvimba,” said VP Chiwenga.

“We have discussed what we want to see happening, the students I see here want that employment. I am happy to hear that Zisco now has a plan.

“Our job, which we will do on behalf of His Excellency the President, is to see the implementation of that plan,” said VP Chiwenga.