Prof Ncube to work closely with Mines Minister - Cabinet

Cabinet has directed Industry and Com­merce Minister Professor Welshman Ncube to work closely with his Mines and Mining Develop­ment counterpart Dr Obert Mpofu on the multi-million-dollar iron extraction deal between the Zimbabwe Iron and Steel Company (New Zimbabwe Steel) and Indian steel giant Essar Africa Holdings so as to ensure that Zimbabwe's interests are protected.

According to the state controlled media, while Cabinet agreed on the full implementation of the initial Share and Purchase Agreement on a 54 percent/46 percent basis and the transfer of ore deposits at Buchwa and Ripple Creek to Essar, it also implored Prof Ncube to uphold transparency and abide by the law in the national interest.

Cabinet resolved that the signed full agreement with details on New Zimbabwe Steel and New Zimbabwe Minerals should be availed to the Minister of Mines and Mining Development and the rest of Cabinet.

Apparently Minister Ncube was also told to work closely with the relevant ministers to ensure the agreement is implemented accordingly.

Cabinet also resolved that the implementation of initial share and purchase agreement on New Zim Minerals should be based on a shareholding structure of 80 percent to 20 percent.

"This should be based on the in situ value of the mineral deposits and subject to conditions as provided in the Mines and Minerals Act," the Sunday Mail reported.

It was also agreed that Essar should be granted the rights to jointly explore for iron ore with the Ministry of Mines and Mining Development in the undisputed section of the Reserve Notice Area at Manhize Range.