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Zimbabwe Steel (Pvt) Ltd  (formally Ziscosteel) and New Zimbabwe Minerals (Pvt) Ltd (BIMCO).

The colourful crowd, led by President Mugabe, witnessed the rebirth of the steel giant that ceased operations two years ago owing to operational challenges.

Illegal economic sanctions imposed on Zimbabwe by Britain, the USA and their allies in protest against the land reform programme were also a factor.
The deal was financed at a cost of US$750 million. 
Described as the “renaissance” of the former dominant steel making plant, the largest in sub-Saharan Africa before its collapse, the official launch brought relief and hope, not only to the more than 3 500 former Ziscosteel workers, but also to people from the Midlands Province and Zimbabwe.

Also present were Prime Minister Morgan Tsvangirai and his deputies, Professor Arthur Mutambara and Ms Thokozani Khupe, Cabinet ministers, service chiefs, legislators, traditional and religious leaders.

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New Zimbabwe Steel and New Zimbabwe Mineral (Pvt) Ltd are the products of a joint venture between Essar Global and the Government.
Essar Global, with 54 percent stake in the venture, has undertaken to massively recapitalise the steel giant.
Addressing the gathering, President Mugabe, said the rejuvenation of the giant steel company demonstrated the confidence that investors have in Zimbabwe.

He said Zimbabwe has vast resources and urged investors to come and invest in the country while providing the necessary technical expertise to help the country benefit from its resources.
He criticised the former management at Ziscosteel for failing to maintain the steel plant.

He said the Essar deal was in line with Government policy on private-public partnerships.
“We have today a demonstration of confidence in Zimbabwe by a major international company of repute. On behalf of Government and the people of Zimbabwe, I wish to express my gratitude to Essar Holdings for coming to partner with us in this strategic sector of our economy.

“This investment bodes well for both the iron and steel industry and the generality of industry at the local and regional levels,” he said.
He said the rebirth of the “sleeping giant” would breathe life into the surrounding communities of Redcliff, Kwekwe and the Midlands Province.
President Mugabe said the investment will also usher in economic development that would transform areas such as Chivhu and its surroundings through mining and beneficiation activities.

“Others had already raised concern that the minerals would be exported and shipped out of the country. No, it is going to be beneficiated there. This is a start of a completely new plant, mining, which would have an industrial aspect to it to beneficiate it, process the steel and indeed involve the people of that area and others who would come as experts,” he said.

He said Zimbabwe was proud of its vast resources, including minerals that were yet to be fully exploited for the benefit of the nation, but yearning for investment partners with technology and financial capacity.

“We do not seek exploiters in the sense, not just in the sense of using their power and strength, that’s exploiting also. This second meaning of exploitation . . . of doing that at the expense of our people, which has happened throughout history. Companies coming here, calling themselves by various names . . . scooping all our land. We were taught and indoctrinated to please these companies,” he said.

President Mugabe said the people would not benefit from anything when the companies exported all their earnings out of the country.
He said investors should come as partners for the benefit of Zimbabweans.
The reopening of the former steel giant, President Mugabe said, will bring Zimbabwe back on the world map of industrialisation.
“We are here to witness this great event, the reopening of Zisco, the rebuilding of Zisco, the rebuilding of our steel industry, to give steel to our country, to make us men and women of steel . . . And Zisco should make us that.”

President Mugabe said the partnership will bring direct employment retention, while generating over 5 000 jobs in Redcliff and Chivhu and many others downstream.
Prior to October 2008, he said Ziscosteel had become a key integrated steelmaker in the region producing up to a million tonnes of long and round steel products per annum and employing at most 4 500 people.

“It has been more than two years now since the closure of operations here and with that closure, the communities around here experienced many hardships. We were concerned as Government and have wanted to find a partner sooner.

“I agree it took us perhaps too long to find a suitor, but we are confident that after the long search, we will have a long lasting relationship with Essar Holdings as an investment partner not only in the iron and steel sector, but also in many other areas where we are seeking genuine investment and the broad empowerment of our people,” he said.

President Mugabe, however, bemoaned lack of maintenance of the plant when it was closed.
“Life had sagged. No employment, no real business and certainly an environment of despondence. But now we say the spring has come.

“What disappoints us, dismays us in the leadership, is the attitude of our people with whom we entrust the fate of our enterprises.
“Those we put in command, in charge of our companies, our plants and even our businesses sometimes disappoint not just us but the nation as a whole.
“There was no reason at all why those in charge should have allowed this plant to get into this situation. Dai simbi dzaiora tingadai tichinhuwirwa pano. (If steel would rot, it would be stinking right now).”

He said the management at Ziscosteel could have just tried to save the plant.
“We may fail because of lack of inputs to transfer those resources but what we must never do is destroy them. Never, ever!”
President Mugabe paid tribute to Industry and Commerce Minister Welshman Ncube for negotiating the deal.

He also hailed Essar Group through its vice chairman Mr Ravi Ruia for investing in Zimbabwe.
Essar Holdings, in May this year extended a loan, on compassionate grounds, to Ziscosteel for employees to pay school fees and medical bills.
He said Zimbabwe would thrive to fully exploit its natural endowments and combine them with reliable and credible technical partners so that the country would never be a net importer of steel again.

President Mugabe said the partnership would send “undeniable signals” to the whole world that Zimbabwe would not look back on its quest for self-reliance and be a proud competitive global player in industry and trade.

“Government therefore fully endorses and supports this project and will continue to render all necessary facilitation for the successful implementation of this great partnership.”
He urged investors to come to Zimbabwe, while calling on Zimbabweans to maintain peace across the country.

“This is not the time for fighting. We might be going for elections but we should maintain peace for the country to attract investors, while keeping partners like Essar to remain in the country,” he said.
President Mugabe said the project would target to grow to the production of 2, 5 million tonnes of various types of steel products per year within 27 months.
“I therefore urge the board and management of this partnership to become more resilient and innovative so as to be the most competitive steel producer in the world,” he said.