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 Zimbabwe Iron and Steel Company. Show all posts
Showing posts with label Zimbabwe Iron and Steel Company. Show all posts
Friday, October 21, 2011
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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