THE resuscitation of Kwekwe steel giant Zisco Steel is progressing well and is set to commence soon following the engagement of a consultant by the strategic investment partner to drive the project.
Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa yesterday told journalists at a post-Cabinet briefing that Strategen Company had been engaged by Kuvimba Mining House as the lead consultants to drive the resuscitation of Zisco Steel.
“The nation will recall that in March 2022, Cabinet approved Kuvimba Mining House as a strategic investment partner for the Zisco Steel plant in Redcliff, Kwekwe. A Memorandum of Understanding was subsequently signed between Kuvimba Mining House and Zisco Steel on 12 August, 2022.
“Kuvimba Mining House has divided the Zisco Steel resuscitation programme into two segments, namely: the Mining Project and the Steel Project,” she said.
Under the Mining Project, Kuvimba Mining House will initially invest US$1 million into the steelmaking plant. The process will commence with the sale of 5 million tonnes of iron ore fines stockpiles at Buchwa Mine in Mberengwa District of Midlands Province.
Kuvimba is expected to work in partnership with the National Railways of Zimbabwe in the refurbishment of the existing Buchwa-Maputo rail line.
“NRZ will earn revenue from the use of the line and provision of goods train services to Zisco.
“Preliminary works include feasibility and market studies, and engineering and process designs.
“The technical appraisal of the steelworks plant will be conducted by SMS Group, a German-based steel equipment manufacturer, while the market studies, engineering/process designs will culminate in a bankable feasibility study and business plan,” Minister Mutsvangwa said.
She said Kuvimba would raise US$300 million for Zisco Steel through local sales of iron ore.
Kuvimba is 65 percent owned by various State vehicles, while the remainder is owned by management. – The Herald
