Zimbabwe: Govt Still Struggling to Revive Zisco Steel
YEARS after promising the resuscitation of ZISCO Steel, the government is struggling to proffer a once-off solution to bring back the firm to its hey days.
ZISCO Steel was once a major steel producer in Zimbabwe, but it faced financial difficulties, mismanagement, and a lack of investment, leading to its closure in 2008.
Speaking in Parliament recently, Industry and Commerce Minister, Mangaliso Ndlovu struggled to point out any tangible progress made to revive the entity, tabling sketchy plans.
Ndlovu was being quizzed by Mbizo legislator, Corban Madziwanyika.
“The coming on board of Dinson Iron and Steel Company currently presents a unique opportunity to build synergies with the existing ZISCO Company plant and other downstream industries such as Lancashire, hence promoting the revival of the local iron and steel sector,” said Ndlovu.
He said currently, there are three key initiatives being undertaken by the government in resuscitating ZISCO and supporting Lancashire Steel. The first one, he said, is the reviving of the wire mill plant at Lancashire Steel which will see the manufacturing of wire rods, drawn wire, weld wire and brick force, barbed wire as well as galvanised wire.
The Industry Minister said the initiative is expected to create more than 20 jobs and provide wire-related products to both up and downstream industries and generate revenue for the company.
“The second one is the establishment of a limestone beneficiation plant at BIMCO. The plant will manufacture burnt lime, aggregate stones for construction and mill limestone into different products. As the House might be aware, we had Kuvimba which had a management contract that has since been terminated owing to non-performance by the contractor.
“This therefore means that the ZISCO board and management have regained urgency to manage and control its own affairs and we welcome this development at this critical juncture,” he said.
Ndlovu said the government is now closer to inking an MOU that ensures that companies in the steel sector do not compete in producing the same products but rather, complement each other.
“Dinson produces pig iron and steel billets for exports and will soon be producing the second stage of hot rolled wires and rolling bars. They have agreed in principle to leave certain types to be produced by ZISCO Steel and these are the shafts, the wire, the beams, the angles and the flat sections.
“The entire sector will leverage the emergence of Dinson Company, which has started production of pig irons and steel billets. I want to submit by concluding that for their part, ZISCO Steel is currently mobilising resources to revive one of their kins for limestone beneficiation into burnt lime or what we call quick lime, which is used to remove impurities in steel making and is also used in construction such as cement manufacturing,” added Ndlovu.
By New Zimbabwe.
