According to Mr Gift Chimanikire Mines and Mining Development Deputy Minister of Zimbabwe, the government will not surrender 90% of the iron ore reserves it had parceled out to Essar Africa Holdings as that provision of the agreement was wrong.
He said that the government wants to reopen negotiations on a deal it made with Essar Africa Holdings of India to relaunch the Zimbabwe Iron and Steel Company, now called New Zimbabwe Steel Limited.
He said the Industry and Commerce Ministry, superintended by Professor Welshman Ncube, erred in handing over the vast iron ore reserves to the Indian conglomerate. He said "The decision made by the Ministry of Industry and Commerce was wrong. You do not just give 90% of your resources to a private company.
He added that the government would reverse its earlier decision to transfer full mineral rights to Essar. Mr Gift Chimanikire said "We have said to them. Do not expect us to hand over these resources. As Government, we cannot just do that."
He said negotiations for the mineral rights transfer were taking long, scuppering plans by Essar to start work at the defunct steel plant. He added that the two sister ministries were now working together to resolve the sticky matters.”
Mr Chimanikire said "Obviously, it has repercussions on the operator. But we are not in a hurry. We need to consult with the Ministry of Industry, adding that all minerals belonged to the State. He said the Government was keenly following Essar's plan to construct an iron ore pipeline stretching from Redcliff to the port of Beira.”
He added that "Essar says the plan is still in its infancy, despite the Environmental Management Agency (EMA) already running a feasibility study on the ambitious project."
He asked "We want to know the movement of our iron ore. Why is EMA doing an environmental assessment study on the project - if there is nothing going on?"
The Indian conglomerate has said it would invest over USD 4 billion in fresh capital over the next four years to revitalise the idle steel plant.
Protracted negotiations with the government over mineral rights, tax concessions as well as water and power guarantees have stalled work at the plant.
(Sourced from allafrica.com)
