Published: 21 October 2013

Government is making progress to ensure that the New Zim Steel (formerly Ziscosteel) is operational by end of year, Industry and Commerce Minister Mike Bimha said yesterday.

Minister Bimha was responding to a question in the Senate on what the Government was doing towards addressing the long standing crisis at the Redcliff based former steel giant.

New Zim Steel has failed to commence operations after the takeover by Indian giant, Essar Africa Holdings in early 2011 following the signing of a $750 million deal with Government.

The minister said an implementation committee, made up of officials from his ministry that of Mines and Mining Development and Essar was making progress towards recommencing operations at the company.

"They will be meeting next week to see the implementation (of the revival plan) through. We are trying to ensure that it comes into fruition by year end," he said.

He added that officials from the two Ministries had met on several occasions to address some of the issues stalling the deal.

Allocation of mining claims, presumably sold to Essar Holdings when the initial deal was penned, is one of the major sticking points which have slowed down implementation of the revival deal.

The Mines Ministry objected to Essar acquiring all the claims which  were previously owned by Ziscosteel.

- New Ziana

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