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Minister Bimha

Commencement of operations at New Zim Steel, formerly Ziscosteel, will take more time than the public anticipates, a cabinet minister has said.The Redcliff-based steel company was rechristened New Zim Steel in 2011 after Government signed a US$750 million takeover deal with India’s Essar Africa Holdings.

Essar now owns 54 percent of the redundant steel producer, whose re-opening since closure over five years ago has been a matter of false starts in the past two years.

Disagreements on mineral claims, which had presumably been handed over to Essar when it acquired the stake, is one of the major issues stalling operationalisation of the deal.

Expectations remain high that the new Government will put the deal to rest shortly. But Industry and Commerce Minister Mike Bimha told New Ziana discussions to resolve issues stalling resumption were on-going. He said a Joint Implementation Committee was recently established to look at ways of facilitating resumption of operations.

“The committee is made up of Essar officials and Zisco management and looks at the day to day issues when it comes to Zisco,” Bimha said.

“They have been holding meetings, I cannot remember how many now but they have been holding meetings. Officials from the ministry (of Industry and Commerce) have also been attending those meetings so that they have a feel of the issues.”

However, Minister Bimha was unsure of when the company, which at its peak employed over 3 000 workers, would resume operations.
The workers are reportedly struggling to make ends meet due to non-payment of salaries although there have been initiatives by the company to at least assist them with payment of school fees, among other needs.

“There is a lot that has to take place. There is new equipment to be bought and ordering them needs time and those issues take time.
“It is difficult to say how long it will take,” the minister said. — New Ziana.