eBusiness Weekly
Michael Magoronga
The deal in which ZimCoke (Private) Limited, is set to revitalise a coke plant within Ziscosteel, now awaits Cabinet approval.
The company took over a coke oven within Ziscosteel in a $133 million deal viewed as the first steps of the revitalisation of the steel giant.
ZimCoke and Zisco signed an agreement of sale in 2017 where ZimCoke bought the coke-making assets of Zisco consisting of the plant and machinery, land and buildings, and associated infrastructure of coal handling and infrastructure.
Refurbishments are expected to begin soon after cabinet nod and production is expected to kick-start before the end of the year.
In an interview, ZimCoke Consultant, Mr Eddie Cross said the deal now hinged upon cabinet approval before refurbishment work can commence.
“We cannot do anything before cabinet Okays the deal. Once they are done, we are good to kick-start work on the site. Once the cabinet gives the go ahead, we are going to take between 6 to 8 months before we start exporting,” he said.
The company has since wrapped in the services of a Germany Engineering Consultancy Company, ThyssenKrupp Engineering for the refurbishment of the coke plant before it kick-starts operations.
The refurbishment of the plant, is the last hurdle before the company commences production which is expected before the end of the year.
The company is also in the last stages of honouring a $225million debt owed by Ziscosteel to Germany bank KFW, marking full ownership of the coking plant.
ZimCoke management together with ThyssenKrupp engineers, on Tuesday toured the plant to assess the impact and how much work is needed.
Mr Cross said the once the deal sails through cabinet as expected, refurbishment work will kick-start.
“These are technical consultancy and they are on site to carry out an assessment of how much work needs to be done as we waits the decision by government. Once that is done we are ready to start refurbishment and within 6 months, exports will begin,” he said.
ZimCoke recently announced plans to invest about $75 million into Hwange Colliery Company Limited’s coke division in a bid to capacitate the company and enhance increased production.
ZimCoke took over a coke oven battery plant segment within Ziscosteel under a $133 million deal.
At full capacity, the project is expected to produce 500 000 tonnes of coke annually, for both local usage and the export markets.
