|Essar directed to cede 51pc|
|Tuesday, 10 July 2012 17:44|
This is in accordance with the country’s indigenisation laws. Cabinet approved the decision recently.
Documents in The Herald’s possession show that the Ministry of Mines and Mining Development has apprised the Ministry of Industry and Commerce on the development in a letter dated July 2.
“Cabinet has directed that Essar Holdings Limited comply with the Indigenisation and Economic Empowerment Act on a 49/51 (percent) basis with the Zimbabwe Mining Development Corporation.“The Zimbabwe Mining Development Corporation is by copy of this letter requested to engage with Essar Africa Holdings and draw up the necessary joint venture agreements,” reads a letter from Mines and Mining Development secretary Mr Prince Mupazviriho to Mrs Abigail Shonhiwa, the Secretary for Industry and Commerce. In the letter, Government indicated that it was ready to transfer mining rights in Redcliff and Buchwa in line with a Cabinet resolution on the matter to NewZim Steel.
“The requisite transfer fees and duty shall be for the transfereer’s accounts. The Ministry of Mines and Mining Development also wishes to advise that: the claims that are under legal dispute will be dealt with upon a favourable outcome by the Supreme Court of Zimbabwe whereupon issues and conditions of their transfer will be discussed,” Mr Mupazviriho said.
He invited Essar for further discussions.
The change of ownership at NewZim Steel comes after Mines and Mining Development Minister Obert Mpofu last month said the Essar deal should be revisited.
Essar only for actual value, as part of the conditions he wanted observed on the deal.