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Walter Mswazie Masvingo Correspondent
A $150 000 electricity debt to Zesa is scuttling plans to revive the mothballed Steelmakers’ sponge iron plant in Masvingo.

Provincial Administrator, Mr Fungai Mbetsa, yesterday said the company, which was closed three years ago, was battling to offset the huge Zesa power debt that has delayed its re-opening.

Steelmakers recently announced plans to revive its sponge iron plant in the Masvingo Inudstrial area, citing improved economic conditions under the new dispensation and a rebound of international steel prices.

“Efforts to resuscitate Steelmakers are being made, but the company has a challenge of electricity debt of about $150 000 that it owes the power utility, Zesa,” said Mr Mbetsa.

He said once settled, the company management had promised to start work in a month’s time.

“The company presents the province with a number of opportunities, chief among them, employment.

“At full capacity the company, which manufactures sponge iron, contributes $3 million in export receipts annually. Efforts are however, being made for electricity to be restored,” he said

The plant equipment, he said, needed one month of maintenance before normal operations could resume.

He said the company, which used to employ 150 workers, has a potential to hire at least 300 employees, once expansion efforts are made.

The Minister of State for Masvingo Provincial Affairs Senator Josaya Hungwe said the company was also appealing for an uninterrupted power supply from the power utility, so that its operations would not be affected by power cuts.

“The company says it wants at least 10 hours of uninterrupted power supply for their machinery used in the manufacturing of sponge iron to gain at least one degree Celsius in temperature.

“So it is against this background that they want a dedicated power line that they do not share with others. We are happy that there are efforts to address these challenges,” said Sen Hungwe.

Sen Hungwe said the firm’s reopening would stimulate economic growth in the province and create employment for youths.

The plant, commonly known as Sponge Iron and Mining Beneficiation Industries (SIMBI) Pvt Ltd, has been closed since 2015, due to the fall in prices on the international market.