India-based Essar Group's subsidiary Essar Africa Holdings Limited has announced that it has received official notification from the government of Zimbabwe for its selection as the preferred bidder for revival of Zimbabwe Iron and Steel Company (ZISCO) by way of purchase of the government's 60 percent equity interest and has been invited to finalize the terms and conditions to complete the transaction.
ZISCO is an integrated steel company with an annual capacity of one million mt engaged in manufacture of long products with operations in Redcliff and distribution centers in Bulawayo, Kwekwe and Harare. ZISCO derives raw material security through its subsidiary Buchwa Iron Mining Company (BIMCO) which owns and operates several iron ore mines and limestone quarries.
ZISCO has been operating at low capacity levels for the last several years due to shortage of working capital and of funds for maintenance/modernization of plant and equipment. As part of its proposal, Essar will invest in the revival and expansion of ZISCO.
Firdhose Coovadia, resident director, Essar (Middle East & Africa), said "We believe ZISCO is well positioned to be a low-cost steel producer that can meet the growing demands of the regional steel market and capitalize on the robust forecasted growth in sub-Saharan Africa."