Proudly sponsored by

Zimbabwe’s state-owned miner selected to revive steel firm

At its peak, the plant produced nearly 1 million tons of steel a year.
Image: Bloomberg Creative Photos

Zimbabwe has selected Kuvimba Mining House Ltd., a state-owned company, which has been shrouded in controversy, to revive one of the continent’s largest steel mills.

The miner, which already has vast interests in gold and nickel, has been picked as the “investment partner” to breath new life into the Zimbabwe Iron and Steel Company, which has been shut for 14 years. At its peak, the plant produced nearly 1 million tons of steel a year.

Kuvimba Mining has said it bought its assets from a company linked to Kudakwashe Tagwirei, a Zimbabwean tycoon who was sanctioned by the US Treasury in 2020 because of allegations he bribed government officials and used political influence to win lucrative state deals.

The government invited bids in April 2021 from investors in a bid to bring back Ziscosteel, which is located in the Midlands province, an area with vast deposits of chrome and platinum. Previous attempts to re-start the mill, including interest by India’s Essar Steel Ltd, stalled as prospective investors haggled over a $300 million debt burden and obsolete machinery at the plant.

Farai Koronga, the chief executive officer for Ziscosteel, said the company needs “$350 million to $400 million to revive the project,” in a phone interview from the mining town of Redcliff. “It all depends on the new investor on what they want to do.”

The Zimbabwe Investment Development Authority, a state-owned investment vehicle, recommended the choice of Kuvimba after carrying out due diligence, according to Joram Gumbo, the Minister of State for Presidential Affairs.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

SEARCH COMPANIES
Enter company name or share code:

ECONOMIC DATA  

  CPIThe Consumer Price Index (CPI) measures monthly changes in prices for a range of consumer products Apr 2022 5.90%
  CPI ex OERThe Consumer Price Index excluding Owners’ Equivalent Rent (CPI ex OER) measures monthly changes in prices for a range of consumer products excluding Owners’ equivalent rent that measures changes in the cost of owner-occupied housing Apr 2022 6.40%
  RepoThe rate at which the Reserve Bank lends money to the country’s commercial banks and set by the Reserve Bank’s Monetary Policy Committee. May 2022 4.25%
  Prime lendingThe Prime Lending Rate is the rate of interest that commercial banks will charge their clients when issuing a loan (home loan or vehicle finance) May 2022 7.75%

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: