Business / Companies
Ziscosteel changes to New Zimbabwe Steel, resumes operations this week
02 Aug 2011 at 05:17hrs | Views
Ziscosteel will assume a new name, New Zimbabwe Steel, when it resumes operations this week, an official has said. Indian conglomerate, Essar Africa Holdings bought control of Ziscosteel from the Government earlier this year in a deal worth US$750 million.
However, work at the Ziscosteel plant has not started due to protracted negotiations between Government and Essar over power, water and tax concessions.
Industry and Commerce permanent secretary, Ms Abigail Shoniwa, told New Ziana that Essar and the Government had finally resolved all outstanding issues, which had delayed operations to commence at Ziscosteel.
Ms Shoniwa said the plant would be re-opened this week, paving way for operations to start.
"The Ziscosteel plant will be formally known as New Zimbabwe Steel when it is inaugurated on Wednesday (tomorrow). "So that signals closure formally of negotiations (between Government and Essar). There are no more water issues to talk about," said Ms Shoniwa, noting that Ziscosteel would, in the short term, be utilising power from Munyati Thermal Power Station.
The coal fired station has potential to generate close to 120MW but requires an estimated US$2 million to be resuscitated.
Once the Ziscosteel plant is running at full throttle, Essar intends to ramp up production to 2,5 million tonnes of steel over the next three years.
Essar has already started a massive recruitment drive to attract skilled workers who left the local steel maker when it ground to a halt in 2000.
Before its collapse, Ziscosteel was the largest integrated steel works in Africa with capacity to produce one million tonnes of the commodity annually.
Ms Shoniwa said Essar was conducting an exploration exercise at the Buchwa iron ore mine to determine whether the plan to export the material was feasible. But local beneficiation of the iron ore was the top most priority, with any surplus earmarked for export, she said.
"At the moment, Essar is doing exploration to determine the full ore reserves. But the project is still a greenfield project. Reserves would first be beneficiated at the Ziscosteel plant," said Ms Shoniwa.
Essar is planning to build a slurry pipeline to transport iron ore and coal from Zimbabwe to the port of Beira in Mozambique.
The Indian steel maker, among other plans, also intends to build a 1 000MW power station in Zimbabwe.
Essar has also pledged to clear Ziscosteel huge debt estimated at US$40 million.
The Indian steel maker is a diversified concern with interests ranging from telecommunications to construction.
Revival of the local steel maker is expected to create jobs, particularly in the Midlands province as well as supporting down stream industries.
However, work at the Ziscosteel plant has not started due to protracted negotiations between Government and Essar over power, water and tax concessions.
Industry and Commerce permanent secretary, Ms Abigail Shoniwa, told New Ziana that Essar and the Government had finally resolved all outstanding issues, which had delayed operations to commence at Ziscosteel.
Ms Shoniwa said the plant would be re-opened this week, paving way for operations to start.
"The Ziscosteel plant will be formally known as New Zimbabwe Steel when it is inaugurated on Wednesday (tomorrow). "So that signals closure formally of negotiations (between Government and Essar). There are no more water issues to talk about," said Ms Shoniwa, noting that Ziscosteel would, in the short term, be utilising power from Munyati Thermal Power Station.
The coal fired station has potential to generate close to 120MW but requires an estimated US$2 million to be resuscitated.
Once the Ziscosteel plant is running at full throttle, Essar intends to ramp up production to 2,5 million tonnes of steel over the next three years.
Essar has already started a massive recruitment drive to attract skilled workers who left the local steel maker when it ground to a halt in 2000.
Before its collapse, Ziscosteel was the largest integrated steel works in Africa with capacity to produce one million tonnes of the commodity annually.
Ms Shoniwa said Essar was conducting an exploration exercise at the Buchwa iron ore mine to determine whether the plan to export the material was feasible. But local beneficiation of the iron ore was the top most priority, with any surplus earmarked for export, she said.
"At the moment, Essar is doing exploration to determine the full ore reserves. But the project is still a greenfield project. Reserves would first be beneficiated at the Ziscosteel plant," said Ms Shoniwa.
Essar is planning to build a slurry pipeline to transport iron ore and coal from Zimbabwe to the port of Beira in Mozambique.
The Indian steel maker, among other plans, also intends to build a 1 000MW power station in Zimbabwe.
Essar has also pledged to clear Ziscosteel huge debt estimated at US$40 million.
The Indian steel maker is a diversified concern with interests ranging from telecommunications to construction.
Revival of the local steel maker is expected to create jobs, particularly in the Midlands province as well as supporting down stream industries.
Source - New Ziana
