ArcelorMittal South Africa confirmed that it had not submitted a fresh bid for Zisco the Zimbabwean state owned iron and steel group but said this should not be seen as a sign South Africa's neighbor was not on its radar.

ArcelorMittal SA was named in Zimbabwe this month as being among five bidders for Zisco after the canning of an earlier bidding round in which the South African steel maker was rejected reportedly on grounds that it was too big along with India's Jindal Steel and Power.

ArcelorMittal SA declined to comment when the reports surfaced this month, but yesterday company spokesman Themba Hlengani said no second bid had been submitted. Adding Zisco to its assets would bolster ArcelorMittal SA's integrated assets amid a protracted dispute with Kumba Iron Ore. Hlengani said that Zimbabwe remained within the company's broader southern African aspirations. "It's just that we didn't submit a bid this time."

Meanwhile, there appears to be an attempt to derail the bidding process for Zisco just as Zimbabwean Industry and Commerce Minister Welshman Ncube is about to recommend a preferred bidder to President Robert Mugabe. Some reports name the preferred bidder as Mauritian group Essar Energy Holdings.

According to RadioVop Zimbabwe's website, Mugabe's nephew, Philip Chiyangwa, wrote to his uncle this week seeking support for his Native Investments Group consortium to be awarded the tender for Zisco.

Ncube reportedly said he hoped common sense would prevail as NIG had not applied to bid. Chiyangwa's company, Zeco Holdings, was awarded exclusive rights to sell Fifa's World Cup hospitality packages.

It's perhaps just as well that ArcelorMittal SA isn't too involved in Zimbabwe, given that it appears to be in a mess of its own amid questions over its black economic empowerment deal with the owners of a company that snatched mineral rights from under its nose.

(Sourced from www.busrep.co.za)