Farirai Machivenyika — The Manhize steelworks will be able to move steel products by rail, as the National Railways of Zimbabwe is satisfied with ongoing efforts to secure at least US$431 million required to upgrade its rail line to the steelworks, NRZ general manager, Ms Respina Zinyanduko, told Parliament yesterday.
She also said the funds will help NRZ procure locomotives and wagons.
Ms Zinyanduko appeared before a joint sitting of the Foreign Affairs and International Trade Portfolio Committee and that of Transport and Infrastructural Development.
"For Manhize, we have done our costing and we have approached quite a number of financial institutions, which are willing to assist us in terms of sourcing capital to buy the requirements for Manhize", she said.
For Manhize alone, the incoming and outgoing local traffic will be about 2 million tonnes a year and for export traffic, it will start with around 600 000 tonnes.
"We are looking at the requirement of about 21 locomotives and 2 650 wagons, together with upgrade of the stretch from Mvuma to Dabuka, that is about 78km. It is 30kg rail and we have to upgrade it to 45kg in line with the load for the other stretches.
"So, we will require about US$431 million for that. So, we have engaged the Chinese; they are on the ground, and the Afreximbank and we are progressing quite well. We are happy with the progress in terms of our engagements. This time, we have decided not to make too much noise until we are done with the processes, but we are making good progress," said Ms Zinyanduko.
The plant is expected to be one of Africa's biggest integrated steelworks.
It is owned by Dinson Iron and Steel Company, one of the three local subsidiaries of China's stainless steel producer, Tsingshan Holdings Group Limited. Disco carried out a test run last month with the commissioning of the plant expected soon.
Ms Zinyanduko also briefed the committees on the turnaround programme for the railways that would be done in three phases and requires at least US$1,2 billion.
"We have Phase One, Phase Two and Phase Three. All in all, we need about US$1,2 million to fully capitalise but it will be in phases. Phase One is to stabilise the organisation, Phase Two is for growth and Phase Three is for expansion, she said.
Ms Zinyanduko also briefed the committees on the status of properties NRZ owned abroad, including mineral claims in South Africa.
She said NRZ was failing to exploit the claims as there were outstanding issues that need to be resolved with the South African government.
The claims were donated to the railway companies of the then Northern Rhodesia (Zambia) and Southern Rhodesia (Zimbabwe) by Cecil John Rhodes.
South Africa was later incorporated into the ownership structure following the formation of a company called Pan-African Minerals Development Company.
However, Ms Zinyanduko said there were issues that have to be resolved between Zimbabwe and South Africa to enable the exploitation of the claims.
"What now remains in South Africa are mining rights that are linked to Cecil John Rhodes that are jointly owned by the NRZ, Zambia Railways and South Africa's State mining entity called Africa Exploration Mining and Finance Corporation. Each shareholder owns 33,3 percent apiece and the mining rights cover about 1,7 million hectares and it has vast mineral deposits that include manganese, limestone, platinum, copper, iron ore, lead, uranium and diamonds, among others.
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"These are being managed under a company called Pan-African Mineral Development Company. This company has been facing some challenges and we have been trying to engage South Africa and the South Africans are not forthcoming.
"The last time we had a meeting of ministers, the South Africans were represented by their Minister Cde Gwede Mantashe (Minister of Mineral Resources and Energy) and he was of the considered view that these minerals were a donation to Zimbabwe and Zambia and the feeling was we were unduly benefiting and after realising that we were not getting any joy from South Africa, we escalated the matter to Government so that the issue maybe resolved at State level.
"The issue was escalated through the Ministry of Transport and Infrastructural Development and we await a response," she said.
