Zisco hunts for new partner

Harare (New Ziana) –The Zimbabwe Iron and Steel Company (Zisco) has invited bids for the resuscitation of the defunct giant steelmaker, the latest such effort in the company’s hunt for a strategic partner.

ZiscoSteel, once the biggest integrated steelworks in Africa, folded operations in 2008 after experiencing serious viability problems, has had two resuscitation attempts fail in the recent past.

Initially, it was sold to Indian firm Essar Africa Holdings in 2011, in a deal worth an estimated $750 million, but this fell through after lengthy squabbles over mineral rights and other technicalities.

In 2017, after the Essar deal collapsed, a Chinese conglomerate, R&F agreed to inject up to $2 billion to revive Zisco.

But, again, the deal with R&F, a multi-billion dollar company with interests in real estate, tourism, mining, and construction, collapsed.

When the new administration under the second Republic took over, it listed the resuscitation of Zisco as a top priority given its strategic importance to the national economy.

Calling for expressions of interest in the resuscitation of Zisco, acting board chair Engineer Martin Manuhwa said the 89 percent government-owned iron and steel making company was primed for revival.

Interested investors, were expected to hand-deliver their expressions of interest by 30th April 2021.

“It (Zisco) is seeking investors who would be interested in availing funds [equity/debt] to resuscitate this former iron and steel producing company,” he said.

“An evaluation of the lodged Expression of Interest will be carried out and if successful you will be invited to participate in the bidding process for the funding.”

As at January 31, 2021, Manuhwa said Zisco had an indicated iron resource of 18 292 853mt.

“Zisco consists of Buchwa Iron Mining Company (Bimco), a 100 percent wholly-owned subsidiary supplying manganiferous iron ore with an installed capacity of 180 000mt/month,” he said.

He said Zisco also boasted of a sizeable quantity of limestone deposits, a key raw material in the steel-making process.

“One of the competitive advantages of Zisco is the nearness of the two feedstock iron ore and limestone (16km and 100m respectively). Coking coal is 570km by rail from the operation. The physical infrastructure (well-built settlements, power -88kV connection, water and communication network) is still available, although the rail and industrial water network might need some upgrading,” he said.

“The rail system is linked up to coastal ports i.e. Beira, Maputo, and Durban.”

Manuhwa said Zisco also owned a 100 percent downstream company called Lancashire Steel, for value-adding of steel billets to wire and wire products with an installed capacity of 4 000mt per month and a 95 percent yield.
New Ziana