Kuvimba hopes to resuscitate Ziscosteel 

by | Feb 23, 2022 | Business | 0 comments

Kuvimba hopes to resuscitate Ziscosteel

Nevanji Munyaradzi Chiondegwa

Government has approved Kuvimba Mining House as the special vehicle tasked with the revival of Redcliff based iron and steel manufacturer Ziscosteel.

This was revealed in yesterday`s post-cabinet media read by Dr Joram Gumbo, the Minister of State for Presidential Affairs and Monitoring Implementation of Government Programmes who was standing in for Minister Monica Mutsvangwa.

“Cabinet received an update on the resuscitation of ZISCO-Steel as presented by the Minister of Industry and Commerce, Honourable Dr Sekai Nzenza,” said Dr Gumbo.

He said the mining house, which paid dividends to Government from their mines which include Freda Rebecca.

“Cabinet is informing the nation that due process was undertaken for the identification of an investor to partner Government in the operationalisation of ZISCO Steel. The standard process to find an investor/partner for ZISCO-Steel was undertaken under guidance from the Zimbabwe Investment Development Agency (ZIDA) and incorporated inputs from the State Enterprises Restructuring Agency (SERA),” Dr Gumbo said.

The initial number of prospective investors who expressed interest in ZISCOSTEEL were nine.

A thorough review by the Executive Management team led to the listing of four bidders who were shortlisted.

They were reduced to three following further, due diligence.

Dr Gumbo said; “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.”

Kuvimba Mining House is a reputable player in the mining and metals sector, and has previously been involved in the other Mining resuscitation.

Cases in point are the recent resuscitation of Jena Gold Mine in Midlands Province and Shamva Gold Mines in Mashonaland Central Province, a process which has resulted in the remittance of dividend to Treasury.

The resuscitation of ZISCOSTEEL has been in the cards for some time with Indian steel giant Essar at one time putting up a bid but it failed to materialise.

ZISCOSTEEL was at one point Zimbabwe’s largest iron and steel company and brought life to the tow of Redcliff and Kwekwe.

Several industries including Agriculture, mining, construction and fabrication were affected by the closure of the giant steelmaker.