Sunday Mail Reporter
Cabinet has directed Industry and Com­merce Minister Professor Welshman Ncube to work closely with his Mines and Mining Develop­ment counterpart Dr Obert Mpofu on the multi-million-dollar iron extraction deal between the Zimbabwe Iron and Steel Com­pany (New Zimbabwe Steel) and Indian steel giant Essar Africa Holdings so as to ensure that Zimbabwe’s interests are protected. 

Sources last week said while Cabinet agreed on the full implementation of the ini­tial Share and Purchase Agreement on a 54 per­cent/46 percent basis and the transfer of ore deposits at Buchwa and Rip­ple Creek to Essar, it also implored Prof Ncube to uphold trans­parency and abide by the law in the national interest.

“Cabinet resolved that the signed full agree­ment with details on New Zimbabwe Steel and New Zimbabwe Minerals should be availed to the Minister of Mines and Mining Develop­ment and the rest of Cabinet,” said a source.

“Minister Ncube was also told to work closely with the relevant ministers to ensure the agreement is implemented accordingly.”
The source said Cabinet also resolved that the implementation of initial share and pur­chase agreement on New Zim Minerals should be based on a shareholding structure of 80 per­cent to 20 percent. “This should be based on the in situ value of the mineral deposits and subject to condi­tions as provided in the Mines and Minerals Act,” said the source.

“It was also agreed that Essar should be granted the rights to jointly explore for iron ore with the Ministry of Mines and Mining Devel­opment in the undisputed section of the Reserve Notice Area at Manhize Range.”

Press reports last week gave the false impres­sion that Prof Ncube had been given carte blanche to proceed with the deal. The official position is that he must ensure the national interest is upheld.