Essar, New ZiscoSteel project still on — Bimha

INDUSTRY and Commerce minister Mike Bimha yesterday told Parliament that the executive vice-chairman of Essar Steel, Firdose Vandrevala, was expected in Harare this week to reassure the nation that the Indian firm was still committed to the New ZiscoSteel project.

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This was after Kambuzuma MP Willias Madzimure (MDC-T) asked if the agreement between ZiscoSteel and Essar was still valid.

“Government is committed to operationalising ZiscoSteel and sometime this week the Essar vice-chairman will be visiting Zimbabwe to reassure the nation that Essar is still committed to see the realisation of this project,” Bimha said.

“The second reason for his visit is to witness the closure of the transaction, because once the transaction is closed, work commences.”

Bimha, however, denied allegations that the iron and steel company had remained dormant because the funds deposited by Essar to resuscitate its operations had been abused.
“It is not true. The agreement states that the investor, who is Essar, will take over the external creditors in Germany and China and that the government of Zimbabwe was going to fund local creditors.

“It is also part of the agreement that Essar as investors will put money into rehabilitation of Zisco and start operations. Therefore, there is no money required prior to closure of transaction. It is only after closure of transaction that Essar will start putting money,” he said.

“Two factors stalled the project last year and the first one was the state of affairs with regard to equipment at New ZiscoSteel where there will be construction of new plants alongside what we have. It is no longer an issue of rehabilitation, but more of constructing new plants. That entails a lot of work in terms of planning and making orders of the new equipment and machinery.”

He said the investors were pushing to conclude the agreement within the next three weeks.
Bimha also said management at ZiscoSteel was working to resuscitate the company’s subsidiary, Lancashire Steel.

13 Comments

  1. Another yarn..when is the good Minister going to get tired of this.?.First it was operations would resume in January now this.

  2. hapana hapana

  3. ziscosteel employee

    When elephants fight, it is the grass that suffers….honourable minister, are you aware that vashandi tava ne 2 years no pay because of this deal which doesn’t come to conclusion? Ko mukambotipawo mari shona zvayo imi muchitora zvenyu nguva yenyu nemaChina enyu

  4. ziscosteel employee

    Ko masalary edu veduwe…2 years here vakomana

  5. They are going to be seen running around very emphatically towards 2018. Its their strategy to do things half way, then appear very committed to finish it towards every election period. These people are so heartless, they will play Russian roulette with peoples lives. To them, people are objects of manipulation and pleasure. Just watch.

    1. inga munozviziva waniko.

    2. saka modii nazvo , coz mdc yacho ……..handina tariro nayo!

  6. 8 months aftr the resounding victory,economic meltdown continues.Zimbabweans lets wake up.New Zimsteel may never operate

  7. Zanu pF YOU ARE WASTING OUR TIME CANT YOU TELL US SOMETHING

  8. I tell you this guy never ceases to amaze me… haunete here iwe Bimha nekunyepera vanhu? January came and passed, we are already almost through the 1st quarter of the year, 7 months after the “resounding victory” of the Zanu PF party, yet companies that are “sleeping”, as many were made to believe, are rather appearing dead… It’s a pity… those that are/were running are/have folded since election time… all the little remaining hope has been lost… ndiro bhora mugedhe here irori? Then you hear this other clueless minister in charge of the nation’s treasury saying the current economy must die first for a new one to come up… it ain’t no bloody maize seed, you clueless goons!!!

  9. where is my comment newsday?

  10. Newsday, where are my comments???

  11. Bimha zisco workers’ kids don’t qualify to be your kids’ hse girls/g/boys yu killed a generation,here yu talk of external debts what of internal debts,if they ar to be paid by yu as gvnt how far hv yu gone in sourcing the funds,Mp madzimure ask him how is he going & from where is he going to get funds to pay (1)workers (2) zesa (3) kwekwe city council (4)nrz (5)redcliff municipality (6)pensioners (7)tax(paye) etc

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