Published: 12 February 2014

Government has dismissed claims that Essar Africa Holdings is delaying works to reopen Ziscosteel which has been renamed New Zimbabwe Steel because of power shortages currently being experienced in the country.

Confederation of Zimbabwe Industries' (CZI) estimates that idle time can be 5 hours per machine per day in the country.

In an question and answer segment at the CZI Zim Asset workshop held recently, industrialists attending the workshop alleged that the company was dragging feet on reopening.

Secretary for Industry and Commerce Abigail Shonhiwa dismissed the allegation and told attending industrialists that the company was licensed to generate power

"The company is licensed to produce power, there will power their operation and possibly power nearby houses and companies.

"We expects New Zimbabwe Steel subsidiary, Lancashire Steel to operationalise in the next six months.

"Civil works have begun at Lancashire Steel, and we are expecting to finalise a roadmap for the operationalization of the company and its subsidiaries," she said.

"Before end of this month we should be able to set up a roadmap for the operationalisation of Ziscosteel," she said.

The African unit of India's Essar Group in November, 2011 agreed to buy 54% in the Zimbabwe Iron and Steel Company (Ziscosteel) in a deal worth $750 million, with the government keeping 36% and 10% to be owned by minority investors.

The deal gives Essar 54% control of New Zimbabwe Steel and also an 80% ownership of NewZim Minerals with the government holding the remaining 20%.
- zimmail

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