Deputy Mines Minister Gift Chimanikire said Zimbabwe is in talks with Essar Africa to claw back rights to iron ore reserves granted to the new strategic partner under the US$750 million deal.
Fri, Oct21, 2011
Zimbabwean Deputy Mines Minister Gift Chimanikire says the government wants to reopen negotiations on a deal it made with Essar Africa Holdings of India to relaunch the Zimbabwe Iron and Steel Company, now called New Zimbabwe Steel Limited.
Chimanikire said Zimbabwe is in talks with Essar to claw back rights to iron ore reserves granted to Essar under the US$750 million deal. The mineral rights are held by New Zimbabwe Minerals, a subsidiary of the relaunched national steel company.
The deputy minister said Essar is extracting iron ore and preparations to refurbish the Redcliff steel plant are at an advanced stage. Neither Industry Minister Welshman Ncube, who negotiated the deal, nor Essar management, could be reached for comment.
Chimanikire said he hopes the new talks won’t derail the revival of the long-moribund steel maker. “Our concern is that Ncube did not consult the Ministry of Mines when they parceled out huge iron ore deposits to Essar,” Chimanikire said.
Economic commentator Bekithemba Mhlanga said the government should not have signed the agreement with Essar without carefully scrutinizing its terms.
(sourced voanews.com)
Showing posts with label Essar Africa. Show all posts
Showing posts with label Essar Africa. Show all posts
Friday, October 21, 2011
Saturday, August 6, 2011
Essar Group to invest up to $4 billion in iron ore project in Zimbabwe
Zimbabwean Industry Minister Welshman Ncube has announced that India-based conglomerate Essar Group plans to invest $2-4 billion to build an iron ore dressing plant in Mwenezi in the south of Zimbabwe.
Minister Ncube said Essar's investment would be the biggest witnessed in the local mining industry in the past 10 years.
Last month Essar acquired local Zimbabwean iron ore and steel company Parastatal Ziscosteel. This company was one of the largest iron ore producers in Africa before going bankrupt three years ago. It reopened on August 3 with its new name New Zimbabwe Steel, and its annual steel output is expected to reach 2.5 million mt.
(sourced steeloribs)
Thursday, March 10, 2011
Essar in pact to revive Zimbabwe Iron and Steel Company
March 10, 2011 By NetIndian News Network
Mumbai: Essar Africa Holdings Limited (EAHL), a part of the Essar Group, today said it had signed an agreement with the Government of Zimbabwe (GoZ) for the revival of the operational assets of Zimbabwe Iron and Steel Company (ZISCO).
A press release from the company said the agreement marked an important milestone in the process which started with the public tender for a majority of the Zimbabwean government's shareholding in ZISCO and begins a new chapter for the economic growth of that country.
The release said EAHL and GoZ would set up two joint venture (JV) companies that shall acquire all the steel and mining related assets and liabilities of ZISCO and its subsidiaries.
Further, EAHL will release GoZ from its guaranteed obligations under the ZISCO debt, the release said.
It said the steel JV would be owned 60/40 and the minerals JV owned 80/20 by Essar and GoZ, respectively.
The transaction will close in due course upon facilitation of various approvals, including approvals from the enabling ministries and an acceptable settlement of the GoZ guaranteed debt obligations of ZISCO.
Upon closing, EAHL and GoZ will also finalize and settle liabilities such as unpaid wages and salaries and amounts due to various local creditors and so on, the release said.
"We believe that this transaction will serve as a catalyst for significant future foreign direct investment into Zimbabwe," he said.
ZISCO is an integrated steel company with a rated capacity of one million tonnes for the manufacture of long products. It has been non-operational for the last few years due to shortage of funds for working capital and maintenance of plant and equipment, irregular supply of power and other critical raw materials and infrastructure. ZISCO also owns iron ore and limestone mining rights and other claims, which require significant investment in exploration and development.
Firdhose Coovadia, Resident Director, Essar (Middle East & Africa) and Director, EAHL said: "We believe that the new ventures will be well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the forecasted growth in sub Saharan Africa. We also recognize ZISCO as a vital and strategic asset for the Zimbabwean economy and Essar looks forward to making a meaningful contribution to the future development of Zimbabwe and its people.The revival of ZISCO represents a challenging task that will require the co-operation of various parties, and entail significant capital expenditure."
He said the Essar Group had a track record of successfully commissioning and operating greenfield and brownfield steel plants in different parts of the world including India, Canada, UK and Indonesia.
Mr Coovadia said the Group would bring in investments and expertise in steelmaking, beneficiation, project management, construction, power generation and logistics.
"We believe that the Essar Group is a good partner for the revival of ZISCO’s assets. With the entry of EAHL as a partner, the various stakeholders of ZISCO, especially the employees will stand to benefit significantly," Mr Nyasha Makuvise, Chairman of the Board of ZISCO, said.
Mr V. Ashok, Indian Ambassador in Zimbabwe commented: "This is an important milestone in the long-standing and fruitful relationship between India and Zimbabwe which dates back to the independence movement in Zimbabwe, and we believe that this partnership will further bring the people of India and Zimbabwe closer."
Essar Group’s current operations in Africa include oil and gas assets in Nigeria, Kenya and Madagascar, telecom assets in East Africa, BPO operations in South Africa and coal concessions in Mozambique.
Tags : iron ore and limestone mining rights, exploration and development, steel mills, raw material, coal, Zimbabwe Iron and Steel Company, ZISCO, steel joint venture, FDI
A press release from the company said the agreement marked an important milestone in the process which started with the public tender for a majority of the Zimbabwean government's shareholding in ZISCO and begins a new chapter for the economic growth of that country.
The release said EAHL and GoZ would set up two joint venture (JV) companies that shall acquire all the steel and mining related assets and liabilities of ZISCO and its subsidiaries.
Further, EAHL will release GoZ from its guaranteed obligations under the ZISCO debt, the release said.
It said the steel JV would be owned 60/40 and the minerals JV owned 80/20 by Essar and GoZ, respectively.
The transaction will close in due course upon facilitation of various approvals, including approvals from the enabling ministries and an acceptable settlement of the GoZ guaranteed debt obligations of ZISCO.
Upon closing, EAHL and GoZ will also finalize and settle liabilities such as unpaid wages and salaries and amounts due to various local creditors and so on, the release said.
"We believe that this transaction will serve as a catalyst for significant future foreign direct investment into Zimbabwe," he said.
ZISCO is an integrated steel company with a rated capacity of one million tonnes for the manufacture of long products. It has been non-operational for the last few years due to shortage of funds for working capital and maintenance of plant and equipment, irregular supply of power and other critical raw materials and infrastructure. ZISCO also owns iron ore and limestone mining rights and other claims, which require significant investment in exploration and development.
Firdhose Coovadia, Resident Director, Essar (Middle East & Africa) and Director, EAHL said: "We believe that the new ventures will be well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the forecasted growth in sub Saharan Africa. We also recognize ZISCO as a vital and strategic asset for the Zimbabwean economy and Essar looks forward to making a meaningful contribution to the future development of Zimbabwe and its people.The revival of ZISCO represents a challenging task that will require the co-operation of various parties, and entail significant capital expenditure."
He said the Essar Group had a track record of successfully commissioning and operating greenfield and brownfield steel plants in different parts of the world including India, Canada, UK and Indonesia.
Mr Coovadia said the Group would bring in investments and expertise in steelmaking, beneficiation, project management, construction, power generation and logistics.
"We believe that the Essar Group is a good partner for the revival of ZISCO’s assets. With the entry of EAHL as a partner, the various stakeholders of ZISCO, especially the employees will stand to benefit significantly," Mr Nyasha Makuvise, Chairman of the Board of ZISCO, said.
Mr V. Ashok, Indian Ambassador in Zimbabwe commented: "This is an important milestone in the long-standing and fruitful relationship between India and Zimbabwe which dates back to the independence movement in Zimbabwe, and we believe that this partnership will further bring the people of India and Zimbabwe closer."
Essar Group’s current operations in Africa include oil and gas assets in Nigeria, Kenya and Madagascar, telecom assets in East Africa, BPO operations in South Africa and coal concessions in Mozambique.
Tags : iron ore and limestone mining rights, exploration and development, steel mills, raw material, coal, Zimbabwe Iron and Steel Company, ZISCO, steel joint venture, FDI
Monday, February 7, 2011
Essar Africa inks deal to take control of ZISCO Steel
Monday, 07 Feb 2011
It is reported that Zimbabwe has inked a USD 28 million deal which saw the Mauritian firm, Essar Africa, assume control of the Zimbabwe Iron and Steel Company.
Essar Africa acquired 54% shareholding in the company from the Zimbabwe government.
After the signing ceremony, Industry and Commerce Minister Mr Welshman Ncube said “The work begins now to restore Zisco Steel to the giant that it was before it was bled to the ground by corruption and mismanagement. We believe we have signed the best deal for the company, and the country.”
The deal at one time hit a snag when Dutch bank, ING, demanded that the USD 28 million Essar was due to pay to the government be used to settle a USD 28 million debt the bank was owed by the state run fixed telephone line company, TelOne.
At its peak Ziscosteel used to produce close to a million tonnes of steel a year, but operations have virtually ground to a halt and most of its 4,000 strong workforce retrenched.(sourced:Newzimbabwe.com)
It is reported that Zimbabwe has inked a USD 28 million deal which saw the Mauritian firm, Essar Africa, assume control of the Zimbabwe Iron and Steel Company.
Essar Africa acquired 54% shareholding in the company from the Zimbabwe government.
After the signing ceremony, Industry and Commerce Minister Mr Welshman Ncube said “The work begins now to restore Zisco Steel to the giant that it was before it was bled to the ground by corruption and mismanagement. We believe we have signed the best deal for the company, and the country.”
The deal at one time hit a snag when Dutch bank, ING, demanded that the USD 28 million Essar was due to pay to the government be used to settle a USD 28 million debt the bank was owed by the state run fixed telephone line company, TelOne.
At its peak Ziscosteel used to produce close to a million tonnes of steel a year, but operations have virtually ground to a halt and most of its 4,000 strong workforce retrenched.(sourced:Newzimbabwe.com)
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