Kuvimba Mining will lead the resuscitation of ZISCO-Steel, Cabinet announced on Tuesday.
Zisco ceased operations at the height of hyper-inflation in 2008 and since then, effort to revive the company have suffered false starts.
An estimated US$1billion is required to revive the worn-out factory.
“Cabinet is informing the nation that due process was undertaken for the identification of an investor to partner Government in the operationalisation of ZISCO Steel,” presented Minister of Industry and Commerce Sekai Nzenza in Cabinet on Tuesday.
“The standard process to find an investor/partner for ZISCO-Steel was undertaken under guidance from the Zimbabwe Investment Development Agency (ZIDA) and incorporated inputs from the State Enterprises Restructuring Agency (SERA).”
Initially, nine prospective investors expressed interest, and after a review by the Executive Management team, four bidders were shortlisted.
“Following further, due diligence, the bidders were reduced to three. Out of the three, Kuvimba Mining House was recommended,” Nzenza said.
Accordingly, Cabinet approved that Kuvimba Mining House be engaged as the Investment partner for the resuscitation of ZISCO Steel.
“Kuvimba Mining House is a reputable player in the mining and metals sector, and has previously been involved in the Cases in point are the recent resuscitation of Jena Gold Mine in Midlands Province and Shamva Gold Mines in Mashonaland Central Province, a process which has resulted in the remmittance of dividend to Treasury,” Information minister Monica Mutsvangwa told journalists during the post-Cabinet briefing.
