New Industry and Commerce Minister Mike Bimha, has said the Government remains committed to implementing the Essar deal as well as taking care of the welfare of Ziscosteel workers during the transition.
In an interview last Friday, Bimha said the initial deal that came about after India Steel conglomerate, Essar Holdings bought Government’s controlling shares in Ziscosteel remained binding.
“Government remains committed to the Zisco/Essar deal. We are being guided by Cabinet on the Essar deal. I want to reaffirm Government’s commitment to fulfilling this deal. There are no negotiations on this pact. The deal still stands,” he said.
In August this year Industry and Commerce minister Welshman Ncube blamed Zanu PF ministers for throwing spanners in the Ziscosteel-Essar project signed in August 2011, but which is yet to fully kick off.
The deal gave India-based Essar 54% ownership and a further 80% control of New Zim Minerals, while government held the remaining 20%.
The Indian company has, however, failed to commence operations after the Zanu PF side of the coalition government moved to reverse its decision on the grounds that the value of its iron ore claims should be verified first.
Zisco has the capacity to produce one million tonnes of steel per year and is currently reeling under debts, working capital and ageing equipment constraints.
