Local Mining Giant Awarded Zisco Steel Project
22 February 2022
Spread the love

By A Correspondent| Government is moving forward with plans to resuscitate ZISCO Steel after identifying a local mining giant Kuvimba Mining House to operationalize the multi-million-dollar Redcliff plant which has been lying idle for years now.

Presenting the Post cabinet decision matrix in Harare Tuesday, Minister of State for Presidential Affairs and Monitoring Implementation of Government Programmes Jorum Gumbo said nine prospective investors had shown interest with the cabinet settling for Kuvimba Mining House.

“Initially, nine prospective investors expressed interest, and after a review by the Executive Management team, four bidders were shortlisted.

“Following further, due diligence, the bidders were reduced to three. Out of the three, Kuvimba Mining House was recommended. Accordingly, Cabinet approved that Kuvimba Mining House be engaged as the Investment partner for the resuscitation of ZISCO Steel,” said Gumbo.

Government is the largest shareholder in Kuvimba with 65 percent stake while private investors have 35 percent.

A 2006 parliamentary inquiry established that the Redcliff plant was brought to its knees by grand looting by government ministers and other senior officials.

Previous efforts to revive the massive steel manufacturer, which at its peak employed more than 5 000 people, have yielded no fruit, mainly on account of bureaucratic wrangling and allegations of corruption.

In 2020, a US$1 billion deal with Chinese company Guangzhou R&FA to resuscitate Zisco collapsed after the government changed its shareholding offer to the company’s president, Zhang Li.

The Chinese billionaire, a real estate mogul, had been willing to start work on the collapsed steel giant and progress had already been made in procuring some equipment.

In January 2018, President Emmerson Mnangagwa promised that Ziscosteel and Shabani Mashaba Mines would begin operations within his first 100 days.