by Stephen Chandisareva.
Harare, Zimbabwe. (News of The South)
– (News of the South) – Government said they have finalised a deal with Chinese Firm which is going to see Zimbabwe Iron
and Steel (Ziscosteel) re-open and generate US $1billion in terms of
Ziscosteel was once Africa’s biggest integrated steel maker but folded
operations in 2008 due to gross mismanagement and a failure to keep
abreast with advancing technology.
The African unit of India’s Essar Group in November, 2011 agreed to buy 54 percent in the steel maker in a deal worth $750 million. But the deal collapsed in 2015 due to squabbles between the partners over ownership of mineral claims.
Speaking on the sidelines of Zimtrade annual exporters on Thursday in Harare, Industry and Commerce Minister Dr Mike Bimha said they have finalised and signed an agreement with an investor to revive Ziscosteel.
“And so we are in the process of finalising the implementation and we
have already signed an agreement and we believe that in a short while, we should be able to unveil the entire agreement with all the details.
“Our investor is not into steelmaking but they are the providers of capital and obviously they will engage in, other PPC contractors to do so.
Bimha said the deal will see Ziscosteel boost the export growth earnings in Zimbabwe.
“And more importantly once you get back Ziscosteel on line, the production exceeds our own demand therefore we will open above US $350million worth of products that we want and it will generate another US $1billion in terms of exports.
Bimha remains confident that Ziscosteel can still, the best export contributor in Zimbabwe.
“When Ziscosteel was still alive on stream, it was the most contributor in terms of exports and therefore it also stresses a point that we should ensure that we get Ziscosteel back on track.
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