Business / Companies
Essar injects $16 million into ZiscoSteel rehabilitation
12 Jun 2013 at 04:04hrs | Views
Essar has injected $16 million into ZiscoSteel exploration and rehabilitation in a bid to resuscitate the Midlands province iron and steel mining company.
Permanent secretary in the ministry of Industry and Commerce, Abigail Shonhiwa told a Parliamentary Committee this morning, a five member team from India is expected to partner with the existing Zisco management in the next 24 hours, to spearhead the rehabilitation process.
"As we speak, we are expecting a five member team to go down to Redcliff tomorrow and spearhead the rehabilitation process. There was an understanding between government and Essar that work needs to start on the ground, and that will include talking to workers, including funding of employees as well as capitalisation and rehabilitation of Ziscosteel.
It is government's interest and desire to see this plant to start, though it is entirely up to the experts. Its progress all the way", said Shoniwa.
At the same time government and Essar are said to have started a joint exploration of Mwanesi ranch in Chivhu to ascertain the exact amount of iron ore deposits in the area under efforts by the Ministry of Mines to plug loopholes in the $750 million deal.
Shoniwa said the rehabilitation exercise will see New Zimsteel in partnership with Essar taking over Zisco's debts, both local and external, with Essar undertaking the external debt and New Zimsteel undertaking all local creditors including Zesa, Zinwa and Redcliff Town council, as well as workers.
The group has to deal with $361 million in liabilities. Breaking down the liabilities, $270 million is in long and medium-term loans divided between Zisco at $231 million and $39 million for Bimco.
Shoniwa said government is going to be closely monitoring the operations at Zisco steel as well as interacting with the workers until the plant is re-started.
Essar estimates a capital expenditure of $388.042 million to revive operations of the Zisco-integrated steel plant, in a programme that will be conducted over two phases over a period of four years.
Permanent secretary in the ministry of Industry and Commerce, Abigail Shonhiwa told a Parliamentary Committee this morning, a five member team from India is expected to partner with the existing Zisco management in the next 24 hours, to spearhead the rehabilitation process.
"As we speak, we are expecting a five member team to go down to Redcliff tomorrow and spearhead the rehabilitation process. There was an understanding between government and Essar that work needs to start on the ground, and that will include talking to workers, including funding of employees as well as capitalisation and rehabilitation of Ziscosteel.
It is government's interest and desire to see this plant to start, though it is entirely up to the experts. Its progress all the way", said Shoniwa.
At the same time government and Essar are said to have started a joint exploration of Mwanesi ranch in Chivhu to ascertain the exact amount of iron ore deposits in the area under efforts by the Ministry of Mines to plug loopholes in the $750 million deal.
Shoniwa said the rehabilitation exercise will see New Zimsteel in partnership with Essar taking over Zisco's debts, both local and external, with Essar undertaking the external debt and New Zimsteel undertaking all local creditors including Zesa, Zinwa and Redcliff Town council, as well as workers.
The group has to deal with $361 million in liabilities. Breaking down the liabilities, $270 million is in long and medium-term loans divided between Zisco at $231 million and $39 million for Bimco.
Shoniwa said government is going to be closely monitoring the operations at Zisco steel as well as interacting with the workers until the plant is re-started.
Essar estimates a capital expenditure of $388.042 million to revive operations of the Zisco-integrated steel plant, in a programme that will be conducted over two phases over a period of four years.
Source - financial express
