|Mining giant suspends salaries, lack of production cited|
|Tuesday, 15 May 2012 00:00|
Takunda Maodza recently in REDCLIFF
It is understood that Essar is reluctant to continue pumping more money into NewZim Steel which is yet to get iron ore mining rights from the Government.
Essar is now the majority shareholder in NewZim Steel after Government sold its 54 percent stake in the company.
Sources at NewZim Steel said management announced the decision to suspend salaries last week.
“They were paying us salaries from January to March this year,” said one of the workers.
“Management announced last week that it was suspending payment of salaries citing a number of reasons.”
It is understood that Essar is awaiting finalisation of the deal with the Government before it fully invests in the company.
“A delegation of workers went to Harare last week and met Minister Ncube and Essar board chairman. They wanted to know the reasons for the suspension of salaries and the delay in the conclusion of the deal.”
“That has been the case for the last four to five weeks,” he said.
He hinted that the Essar deal will not materialise unless Mines and Mining Development Minister Obert Mpofu issued the new investors a certificate for mining rights.
“We are taking 14 months to sign a document which in a normal country should take a week,” he said.
Workers report for duty everyday, but there is no production taking place.