Zimbabwe: Newzim Steel Likely to Become Shell Company

NEWZIM Steel, formerly Ziscosteel, is likely to become a shell company if the Essar takeover fails as the new owners are borrowing millions of dollars to pay 3 000 idle workers while coalition government partners continue to dither over finalisation of the US$750 million deal.

Essar has not started production at the giant steel making plant in Kwekwe as some cabinet ministers are demanding a review of the agreement which they argue strongly undervalued the Mwanesa iron ore claims.

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