Source: Chinese renew Zisco interest | The Sunday News July 21, 2019
Munyaradzi Musiiwa, Midlands Correspondent
THE Government has renewed talks with a Chinese Investor, R and F for the revival of Ziscosteel after the initial deal collapsed.
The now-defunct giant iron and steel manufacturer now requires about US$500 million for it to come back to life.
Speaking to the Parliamentary Portfolio Committee on Industry and Commerce led by Cde Joshua Sacco in Kwekwe last week, Ziscosteel chief executive officer Mr Alois Gowo said Government has rekindled hope for the revival of once Southern Africa’s giant steel producer after reengaging R and F. Mr Gowo said R and F officials said there were certain requirements that had to be met first for the deal to materialise and Government was working on the outstanding issues.
“We were informed by the Ministry of Industry and Commerce that Government has re-opened negotiations with R and F for the revival of Ziscosteel. We were informed that there are requirements that are supposed to be met first.
We are yet to get full details of what the requirements are,” he said.
Mr Gowo said Ziscosteel requires about US$500 million for it to resume operations and was pinning hope on the ongoing negotiations with the Chinese firm.
“What I can say is that basing on our own assessment and those of other investors we need in the region of US$350 million to US$ 500 million for us to kick start operations.
We had many deals collapsing including that of R and F and Essar.
Our parent Ministry is again engaging R and F and Government will make announcements,” he said.
The committee also visited Lancashire Steel a Ziscosteel subsidiary where they were appraised on how the steel manufacturing company seeks to resume operations following a US$2 million loan facility extended to it.
Chinese billionaire Mr Zhang Li expressed interests in the company and offered US$1 billion. However, the deal took long to materialise.