Business / Companies
New Zimbabwe Steel set to do exploration of Mwanesi iron deposits
04 Aug 2011 at 07:40hrs | Views
New Zimbabwe Steel is set to do exploration of Mwanesi iron deposits to be beneficiated and form part of the critical feedstock into the steel production of Zisco (New Zimbabwe Steel Limited).
The process from feasibility to plant establishment and operationalisation is projected to cost between US$2 billion and US$4 billion spread over a minimum of five years.
New Zimbabwe Minerals, formally BIMCO, holds rights to iron ore deposits in Ripple Creek, Mwanesi, Buchwa among other areas required as feedstock into the steel making process.
Zisco, with a capacity to produce one million tonnes of steel annually, will have a new design output of 2, 5 million tonnes in the next 27 months after fresh capital injection.
Prospects for return to production became even brighter yesterday amid revelations Essar has waived preconditions it had set before commencement of operations.
During negotiations, Essar signed a Memorandum of Understanding with Government for guarantees of key enablers, namely water, transport, energy tax and minerals.
Essar Group vice chairman, Mr Ravi Ruia, yesterday said his company would invest significantly in the key enablers to ensure the successful revival of Ziscosteel.
He said his company would also invest in state of the art technology to beneficiate iron ore from Mwanesi, which had not been commercially exploited anywhere in the world.
He said Government's Medium Term Plan focusing on entrepreneurship and resource mobilisation dove tailed into Essars investment and development programme.
Mr Ruia also said his company had set aside US$10 million to support youth and women's activities (US$5m) and small and medium enterprise development (US$5m).
After acquiring 54 percent in Zisco and 80 percent in BIMCO, Essar undertook to clear Government's US$340 million debt to KFW Bank of Germany and China's Sinosure.
The process from feasibility to plant establishment and operationalisation is projected to cost between US$2 billion and US$4 billion spread over a minimum of five years.
New Zimbabwe Minerals, formally BIMCO, holds rights to iron ore deposits in Ripple Creek, Mwanesi, Buchwa among other areas required as feedstock into the steel making process.
Zisco, with a capacity to produce one million tonnes of steel annually, will have a new design output of 2, 5 million tonnes in the next 27 months after fresh capital injection.
Prospects for return to production became even brighter yesterday amid revelations Essar has waived preconditions it had set before commencement of operations.
Essar Group vice chairman, Mr Ravi Ruia, yesterday said his company would invest significantly in the key enablers to ensure the successful revival of Ziscosteel.
He said his company would also invest in state of the art technology to beneficiate iron ore from Mwanesi, which had not been commercially exploited anywhere in the world.
He said Government's Medium Term Plan focusing on entrepreneurship and resource mobilisation dove tailed into Essars investment and development programme.
Mr Ruia also said his company had set aside US$10 million to support youth and women's activities (US$5m) and small and medium enterprise development (US$5m).
After acquiring 54 percent in Zisco and 80 percent in BIMCO, Essar undertook to clear Government's US$340 million debt to KFW Bank of Germany and China's Sinosure.
Source - Byo24News
