Staff Reporter
Kuvimba Mining House is set to inject about US$1 million into the giant steel making plant ZISCO STEEL.
Speaking at a Post Cabinet Briefing, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa revealed that after the signing of a Memorandum of Understanding (MoU) between ZISCO STEEL and Kuvimba Mining House in 2022, the later decided to resuscitate iron and steel production in Kwekwe by injecting US$1 million into ZISCO STEEL.
"The nation recalls that in March 2022, Cabinet approved Kuvimba Mining House as a strategic investment partner for the ZISCO STEEL plant in Redcliff, Kwekwe. A Memorandum of Understanding was subsequently signed between Kuvimba Mining House and ZISCO STEEL on 12 August, 2022.
"Under the Mining Project, Kuvimba Mining House would initially invest US$1 million into the steelmaking plant," said Minister Mutsvangwa.
Minister Mutsvangwa added that the resuscitation project of ZISCO STEEL would be divided into two parts namely the Mining Project and the Steel Project as Kuvimba Mining House will also work in collaboration with the National Railways of Zimbabwe in the refurbishment of railway lines linking Kwekwe and other cities and towns.
"Kuvimba Mining House has divided the ZISCO STEEL resuscitation programme into two segments, namely the Mining Project and the Steel Project. Kuvimba will work in partnership with the National Railways of Zimbabwe in the refurbishment of the existing Buchwa-Maputo rail line. NRZ will earn revenue from the use of the line and provision of goods train services to ZISCO," said Minister Mutsvangwa.
Minister Mutsvangwa further mentioned that the technical appraisal would be conducted by a German based equipment manufacturer and on the other hand Kuvimba is expected to generate US$300 million through local sales of iron ore.
"The technical appraisal of the steelworks plant will be conducted by SMS Group, a German-based steel equipment manufacturer, while the market studies, engineering designs will culminate in a bankable feasibility study and business plan. Kuvimba Mining House will raise US$300 million for ZISCO STEEL through local sales of iron ore.
Meanwhile, the nation was informed that Strategen Company has been engaged by Kuvimba as the lead consultancy to drive the resuscitation of ZISCO STEEL. This would go a long in achieving the US$12 Billion Mining Economy by 2023.
