It is learnt that Essar Group plans to start production at the Zimbabwe Iron and Steel Co's 1 million tonnes per annum steel plant in the next 12 months.

Mr Malay Mukherjee on the sidelines of SteelGuru and IPF Online’s Indian Steel Markets 2011 conference said that "There are certain pre conditions for production to begin in that plant. A team from Essar Steel is in Zimbabwe talking to the government.”

Mr Mukherjee said that Essar Steel would also conduct exploration for the iron ore mines in Zimbabwe over the next few months adding that the quantum of investment will be decided once the company gets a clearer picture of the assets in the country.

Essar Group subsidiary, Essar Africa Holdings Ltd and the Zimbabwean Government signed an agreement last week to set up two joint venture companies that will acquire all the steel and mining assets and liabilities of ZISCO. Essar will own 60% of the steel joint venture and 80% of the mining company.

ZISCO has been non-operational for the past few years due to a shortage of funds for working capital and the maintenance of plant and equipment, irregular supply of power and other critical raw materials.

(Soured from BL)