Published: 11 April 2014

The Government should make a pronouncement on progress made at NewZim Steel (formerly ZiscoSteel) in the next "two weeks," an official has said.

Industry and Commerce Minister Mike Bimha said the long delay in the resurrection of the steelmaker had been caused by some of the plants which required complete reconstruction.

"Some of the plants, three of them, need more of new construction, you can't even repair them and that requires a lot of planning and orders of equipment. But I would like to advise that we are almost there," said Minister Bimha.

"As a ministry we are very happy with the developments so far. You should be hearing something along those lines in the next week or two." A source within NewZim Steel told BH24 that the company has made "significant progress" in respect of revamping plant and equipment.

The source said the plant could become operational by June.

In March 2011, the Government agreed sell 54 percent of its shareholding in ZiscoSteel to Essar Africa to enable revival of the firm.

But industry still awaits the new entity to be operational.

During its peak, ZiscoSteel had the capacity to produce more than one million tonnes of steel per annum and employed up to 4 000 workers before its financial plight rapidly deteriorated leading to its closure in 2008.

Minister Bimha said NewZim Steel, along with Sable Chemicals and the National Railways of Zimbabwe were key economic enablers for the country, and that efforts are in progress for their revival.

With respect to Sable Chemicals, Minister Bimha said it was engaging strategic partners as they seek to change the fertiliser manufacturer's plant from an electrolysis one to either gas or coalbed methane.

Industrial Development Corporation (IDC) chief executive Mike Ndudzo is on record saying overhauling the Sable plant will cost around $750 million.

Sable Chemicals is an associate company of Chemplex Corporation, which is a subsidiary of the IDC.

- BH24