Kuvimba to use iron stockpiles to help fund Zisco revival

KUVIMBA Mining House, in which the Government owns a 21 percent stake, plans to use US$300 million worth of iron fines stockpiled at its Buchwa Mine to assist in funding resuscitation of the Zimbabwe Iron and Steel Company (ZiscoSteel).

In a cabinet brief, Industry and Commerce Minister Dr Sekai Nzenza said Kuvimba has engaged Strategen Company (SMS) of Germany as the lead consultancy to drive the resuscitation of the moribund giant steel works based in Redcliff, Kwekwe, the Midlands province.

Ziscosteel

The minister said following the approval of Kuvimba Mining House as a strategic partner in March last year and signing of the Memorandum of Understanding the following August, the mining house started by dividing the resuscitation programme into two segments, namely the Mining Project and the Steel Project.

“Under the Mining Project, Kuvimba Mining House will initially invest US$1 million into the steelmaking plant,” she said.

“The process will commence with the sale of five million tons of the iron ore fines stockpiles at Buchwa Mine in Mberengwa district of Midlands province. Kuvimba will work in partnership with the National Railways of Zimbabwe (NRZ) 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.”

National Railways of Zimbabwe train

“Preliminary works include feasibility and market studies, and engineering and process designs. The technical appraisal of the steelworks plant will be conducted by SMS Group, a German-based steel equipment manufacturer, while the market studies, engineering/process designs will culminate in a bankable feasibility study and business plan.”

Zisco stopped operations in January 2008 following three successive power outages from the national grid coupled with cool water challenges, leading to the cooling down of coke oven batteries and subsequently the cooling down of the blast furnace. -New Ziana