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Lloyd Gumbo and Munyaradzi Musiiwa Herald Reporters
THE long-awaited revival of Zisco Steel (now New Zim Steel) is Government’s number one priority and the steel giant is expected to resume operations following the arrival of engineers from the parent company, Industry and Commerce Minister Mike Bimha has said.The revival of the steel giant will guarantee about 7 000 jobs.
Speaking during a dinner hosted by the Confederation of Zimbabwean Industries in Gweru over the weekend, Cde Bimha said

Government was now working on the implementation strategies to make New Zim Steel operational.
“Government is working on the operationalisation of New Zim Steel. This is our quick win as the responsible ministry. We are leaving no stone unturned to ensure the operationalisation of New Zim Steel. This is not a mickey mouse project but a huge investment which involves a lot of money and therefore its implementation was not smooth sailing,” he said.

Earlier on, New Zim Steel workers had criticised Minister Bimha for failing to address the problems bedeviling the former giant steel company.

The problems, they said, have resulted in them going for almost three years without salaries. The workers said they feel neglected as their problems continue to mount.

They say they have not been paid full salaries since 2011 except a brief intervention by the investor before the firm suspended paying salaries in May last year citing lack of production.

“It looks like Government is not concerned with our plight although it is public knowledge that we have gone for three years without salaries,” Ziscosteel Joint Unions Committee chairman Mr Benedict Moyo told The Herald on Thursday.

Cde Bimha said there were disagreements on the New Zim Steel deal due to the existing policies.
He however, said Essar Holdings and Government overcame the hurdles and managed to reach a compromise.

“In the past, the was a disagreement in the New Zim Steel deal in terms of policy but I can assure you it is now in the past. That is all behind us. The revival of New Zim Steel is no longer an issue of policy but it is now a matter of implementation. What we are concerned of at the moment is that implementation takes place,” he said.

Cde Bimha said the revival of New Zim Steel was going to be gradual.
“New Zim Steel cannot start operating on full throttle overnight. There has been a lot of refurbishment of the plant among other renovations that are going to take place. Essar Holdings engineers arrived on Wednesday while some are expected next week. This demonstrates that the re-opening of New Zim Steel is imminent,” he said.

Government and Essar Africa Holdings entered into a deal in 2011 under which the India-based firm acquired a 60 percent controlling stake in New Zim Steel (Pvt) Ltd, leaving the Government with 40 percent.

Under the same deal, Government also has a 20 percent stake in New Zim Minerals (Pvt) while Essar Holdings controls 80 percent.
The deal failed to take off after Government insisted on re-negotiating the shares in New Zim Minerals (Pvt) Ltd citing some anomalies in the initial agreement.

Despite Government and Essar Africa Holdings signing a US$750 million agreement in 2011 for the takeover of the company, disagreements over the control of iron ore reserves in Mwanesi have hampered the full implementation of the deal.

Government raised concerns that Essar was getting the iron ore deposits worth US$30 billion when the company only paid US$750 million.

Essar is now the majority shareholder in New Zim Steel after Government sold its 54 percent stake in the company.
Following the impasse, management at Essar Africa Holdings have withheld further funding to New Zim Steel in a bid to press Government to finalise the takeover deal.

Zisco Management Union secretary general, Mr Gabriel Sibanda accused Minister Bimha of inaction.
“If you look at other ministers like Dzikamai Mavhaire (Energy and Power Development) they have been throughout the country at a short space of time yet our own minister who knows the problems here has not
been here.

“All he does is to talk to the press from Harare claiming that we will be paid yet we have not. It seems nobody understands our situation. We feel abandoned,” he said.

He said they were sometimes given an eighth of their salaries when the company sells scrap metal and slag.
Minister Bimha distanced himself from the plight of workers saying their welfare was under the ambit of the management.

“They have to approach management at ZiscoSteel. My job is not to help them get money in their pockets. There is management that is supposed to address their problems.

“My role is to get an investor who can ensure operations resume. They must go to management and if management fails to address their problems it has to go to the board,” said Minister Bimha.