Operations at New Zim Steel are expected to resume next month after Cabinet guaranteed the investor that the initial deal signed between the Government and Essar Group stands.
This brings relief to over 3 000 workers who have gone for almost a year without salaries after the investor suspended payments in March this year.The investor,who is apparently impressed by the latest arrangement,reportedly agreed to pay the workers before Christmas.
Industry and Commerce Minister Welshman Ncube said the Essar Group had requested a Cabinet guarantee that there would be no changes to the original deal signed between the Government and Essar last year.Mr Ncube said that"This was sparked by statements that were attributed to(Gift)Chimanikire(Deputy Minister of Mines and Mining Development)in the media recently that they were not going to give New Zim Minerals iron ore claims at Mwanesi."
According to the original deal,Essar Group would take 53%of New Zim Steel(former Ziscosteel-manufacturing arm)and 80%of New Zim Minerals(former Buchwa Iron Mining Company mining arm)while the Government takes the remaining shares in both firms.
Minister Chimanikire recently told The Herald that his ministry was not going to give away mining claims at Mwanesi Ranch that have rich ore deposits.He said there was a need to avoid a monopoly by giving other players an opportunity to mine iron ore at Mwanesi in Chivhu.
Mr Ncube further said that"The investor then requested that the Office of the President writes to them telling them the correct position.Their problem was that Government was speaking in so many contrary voices.The Office of the President and Cabinet then wrote to Essar Group last week Tuesday telling them that the Cabinet decision of September 10 this year confirming the agreement of March last year was going to stand."
Mr Ncube further said that"The Essar people then responded to us this morning expressing their happiness with the Chief Secretary's letter(Dr Misheck Sibanda).What we have now agreed is that we will have ameeting between Essar,ourselves and our colleagues in the Ministry of Mines and Mining Development to finalise all the issues to do with joint exploration and the transfer of mining rights to New Zim Minerals.We are hoping to have that meeting before the end of this month."