Harare — THE revival of the Zimbabwe Iron and Steel Company is now imminent amid revelations that the short-listed bids of South Africa's Arcelor Mittal and Jindal Steel of India are now in the President's Office.

Zisco, potentially the biggest steel manufacturer in Africa, has for close to a decade been teetering on the verge of collapse due to serious funding problems.

Impeccable sources told Herald Business yesterday the Ministry of Industry and Commerce and that of State Enterprises and Parastatals would soon hold discussions with the President on the eventual winner of Government's stake in Zisco Steel.

"We have made recommendations to the President's Office and we are awaiting discussions on the matter. Other issues as to how much will be invested in Zisco will be discussed with the eventual winner of the Zisco stake," said the source.

Government's efforts to revive the company in 2004 aborted after Global Steel Holdings of India pulled the plug on the US$400 million deal under unclear circumstances.

Zisco Steel had potential to produce between 700 000 tonnes and 1 million tonnes of steel annually, but all this potential has been wasting away over the years due to capitalisation problems and a debt overhang of more US$300 million.

Zisco, which provided employment to hundreds of Kwekwe residents, employed in excess of 4 000 people at its peak but but this slumped drastically to an average of 1000 workers when its problems started.

However, the revival of Zisco to its glory days of yesteryear might come sooner rather than later.

Arcelor Mittal and Jindal Steel's bids, which collaborated with local firm Steel Makers Zimbabwe in bidding for the Zisco stake, have also passed through an interministerial committee for thorough verification of their suitability.

Arcelor Mittal South Africa is the subsidiary of Arcelor Mittal Group -- the world's largest steel makers with a market capitalisation over of US$35 billion. Jindal Steel is one of the largest producers of Steel in India.

The race for a stake in Zisco initially pitted six bidders that included Murray and Roberts and Reclamation both from South Africa.

Industry and Commerce Minister Welshman Ncube recently said the eventual winner of Government's stake in Zisco would have to settle its debts.

Zisco owes Germany's KFW about 73.8 million euro, and two other foreign banks a combined US$47 million among other local and external creditors.

The company requires huge financial injection to take it out of the quagmire, which forced it to sell scrap accumulated over the last 40 years to survive.

The Government had been subsidising the company for 15 years until 2003, but there had been no meaningful positive returns from its investment.

This was largely blamed on lack of effective and competent management following revelations in 2002 the giant steel makers accounts were last audited in 2000.

Revival of the company to the peak of its yesteryear would be positive development for job seekers and the country at large as the company used to export as far afield as Germany and Italy earning the country millions in hard currency.