INDUSTRY minister Mangaliso Ndlovu says government is yet to conclude negotiations with Chinese investor R and F for the resuscitation of Ziscosteel (Zisco), two years after the deal was consummated.
The deal, which is estimated to be worth over $2 billion, follows a series of similar efforts to restart the Redcliff based steel maker which ceased operations 11 years ago, including a botched deal with Indian giant Essar.
“There is an agreement with R and F, a Chinese company and there are a few housekeeping issues that are being tidied up to that effect. We will be meeting them in the next two weeks as there are issues that as government we feel need to be agreed to,” Ndlovu told journalists yesterday.
“We are hoping that we will finally reach an agreement with our potential investor,” he said.
Last year government gazetted the Zisco Debt Assumption Bill, effectively taking over the steel giant’s debt, clearing the way for the takeover by the Chinese firm.
According to the bill, Zisco’s debt stood at US$494 million as at December 2016, with US$211,9 million of that being external loans owed to KFW (Germany), Sinosure (China) and Sumitumo (Japan) who are owed a total of US$6 million.
Domestic loans amount to US$56 million while domestic suppliers, utilities and statutory obligations are at US$219 million.
Ndlovu said ZimCoke is expected to commence operations at the defunct Zisco plant in February next year.
The company has taken over the coke oven battery at the
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