Chinese firm denies ZISCO deal
By Violet Gonda
28 November 2006

Is the much talked about ZISCO agreement between Zimbabwe and China a damp squid? According to a Reuters report, the state-owned China Metallurgical Group Corporation (MCC) has not made a bid for the struggling state-owned steel firm in Zimbabwe.
The state mouthpiece The Herald had on Monday quoted Zimbabwe's Ambassador to China, Christopher Mutsvangwa, saying the MCC had put in a US$3 billion offer for a 60 percent stake in the Zimbabwe Iron and Steel Company.

But Reuters news agency said officials in MCC's planning and overseas investment departments said; “There's no such thing. We haven't bid for it at all."
Although MCC officials confirm - on their website – of a meeting with several Zimbabwe Ministers in late October actual details of the meeting are not available.

Economist Eric Bloch warned on Monday that; “Until there are actually signed agreements and implementation we can’t take it for granted. There has been too many cases where there has been a lot of big talk, trumpet blowing and when it comes to the small print the parties don’t reach an agreement.”
ZISCO used to be the country’s main foreign currency earner until gross mismanagement and corruption resulted in it running at 30% capacity. Senior government officials, including Vice President Joyce Mujuru, have been implicated in a confidential report complied by the National Economic Conduct Inspectorate (NECI).