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KUVIMBA Mining House which was recently chosen by Cabinet as the investment partner for the resuscitation of the defunct Redcliff-based Ziscosteel, has hit the ground running.

The company which has both private and State shareholding, has since established a select project team for Ziscosteel led by a special projects manager.

The team is undertaking a due diligence exercise before the negotiations and signing of a memorandum of understanding (MoU) soon.

Kuvimba Mining House has made an undertaking to release US$300 million as provisional capital for the resuscitation of the giant steel producer.

Zisco board chairman Engineer Martin Manuhwa said the company intends to use new technology to blend with what it already has as it works towards resuming production. He said subsidiaries and mining activities are expected to play a role in raising some of the capital going forward.

“We will build towards about US$1 billion that we will raise through subsidiaries and mining activities among other strategies,” said Eng Manuhwa.

He said Kuvimba Mining House was not taking equity in Ziscosteel as what was being demanded by other potential investors. Zisco group chief executive Dr Farai Karonga said they expect to resume production in the next 12 months.

Industry and Commerce Minister Dr Sekai Nzenza said the resuscitation of Ziscosteel was not only crucial for Kwekwe but the entire Zimbabwean industry.

The revival of Ziscosteel has been on the cards for a long time and industries that used to rely on it for raw materials had lost hope. The company stopped production in 2008 due to a myriad of challenges blamed mostly on mismanagement.

When the Second Republic came into office, there were loud calls to prioritise the revival of Zisco which could save the country billions of dollars it is spending on importing steel and steel products annually.

Several global steel giants including Essar Holdings, Jindal Steel and Power and Global Steel Holdings all from India and R and F from Hong Kong have shown interest in investing in Ziscosteel but have been reluctant to commit funds.

Now that a local company is leading the resuscitation process, it might entice these global steel giants to commit funds. The country is spending about US$1,1 billion annually to import steel and steel products, a confirmation that Zisco’s products have a ready market locally.

The company has a potential to also export steel worth US$1 billion annually. This, we want to believe, is what should push a serious investor to commit funds in the revival of Ziscosteel.

The giant steel manufacturing company used to be Africa’s biggest integrated steel manufacturer and its resuscitation will boost other firms such as Hwange Colliery Company, National Railways of Zimbabwe (NRZ) and many other downstream industries.

Kuvimba Mining House which has committed US$300 million as provisional capital for the resuscitation of Ziscosteel, has already demonstrated that it means business by what it is doing on the ground. Government on its part should ensure that this time around no spanners are thrown in the works.