By Nomalanga Moyo
SW Radio Africa
07 January 2014
Zimbabwe’s steel maker New Zimbabwe Steel, formerly known as Ziscosteel, will reopen this month, according to the Daily News newspaper.
A weekend report in the daily newspaper quoted Mines Minister Mike Bimha as saying all was set for this month’s re-opening.
A dispute between the Mines and Indigenisation ministries over the transfer of mineral claims stalled Indian-owned Essar’s $750 million takeover of Ziscosteel.
But this has since been resolved, according to Bimha who told the Daily News that Essar will officially begin operations this month after the State, which owned a 70% stake in Ziscosteel, transferred the ownership of claims at Buchwa, Ripple Creek and other claims.
Lack of operating capital forced the Redcliffe-based steel manufacturing concern to shut down in 2008, throwing thousands of employees and their families into destitution.
Bimha also revealed to the newspaper that new NewZimSteel owners Essar Holdings had agreed to inherit an estimated $200 million debt from Ziscosteel.