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The deal will see Essar Africa securing about 54 percent of Zisco and injecting at least US$355 million in fresh capital.

This will be through purchase of roughly twothirds of Government’s 90 percent shareholding in the troubled company, which ceased production in 2008 due to financial constraints and a huge debt overhang.

The Herald can reveal that Essar will pay off Zisco’s US$240 million debt to KFW of Germany, pay US$55 million for Government’s stake and invest US$65 million in refurbishing blast furnaces 3 and 4.

The company will also invest in renewal of the coke oven battery and human skills development among other areas to rejuvenate the steel giant, which employed more than 4 000 workers at its peak.

Industry and Commerce Deputy Minister Mike Bimha said President Mugabe, Prime Minister Morgan Tsvangirai and Deputy PM Arthur Mutambara had approved Essar’s bid for the dormant steel firm.-The Herald