"The initial phase of the project will involve the revival of NewZim Steel to a production capacity of 500,000 metric tonnes of liquid steel within 24 months," Industry and Commerce Minister Mike Bimha said at a press conference in the capital Harare.
"We are now going to see the implementation of the project."
Essar Africa Holdings said it will inject an initial $650 million to resuscitating production with funds going to buy new plant equipment and construction of a 600 megawatt thermal power station.
NewZim Steel is a joint venture company between Essar and the Zimbabwe government formed in 2009, rebranding the old Zimbabwe Iron and Steel Company (ZISCO).
Operations were delayed following disagreements over mineral rights.
The Indian firm controls a 54 percent stake in the joint venture project while the government controls the rest.
Firdhose Coovadia, director of Essar Africa, Middle East and Turkey said NewZim Steel will settle over $400 million in debt which was taken from ZISCO.
Zimbabwe's economy has been on a downturn for over a decade worsened by low foreign investment blamed on government policies including the controversial law which forces foreign businesses to cede a majority of shares to local partners.
Source: AFP
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
