Essar’s Zimbabwean steel quest turns sour

All the hope for speedy recovery of the Redcliff economy seems to have been dashed by the wranglings reported in this story. The Government’s controversial indigenisation policy stipulates 51% shares should be offloaded to local people, and typical of the ZANU PF Officials, bilateral or special agreements are ignored in favour of populist agendas. Sadly Essar came to Zimbabwe in good faith, but they now have to continue negotiating their stake. Despite the posturing, a brief story published on 11th December 2011 says “Essar gets management control of Zisco“, good news indeed.

Mumbai: The Essar Group’s quest for iron ore remains elusive with Zimbabwe declining to supply the resource as envisaged in a contentious deal between the Indian conglomerate and the African state.

The Essar Group may have to renegotiate the terms of the contract if it wants to continue with its plans in the African nation.

Zimbabwe won’t sell 90% of its iron ore resources to one company, mines and mining development deputy minister Gift Chimanikire said. He added that the provision in the current pact that allowed this was wrong.

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