ZimAlloys creditors approve $100m investment deal

Published: 12 December 2017

CREDITORS have approved a $100 million investment deal paving way for the revival of Gweru-based giant ferrochrome producer, Zimbabwe Alloys, an official said.

The firm has been on judicial management under Grant Thornton International and is expected to be back on its feet within the next 18 months after its creditors approved a $100 million investment deal with Indian investor, Balasore Alloys Group.

ZimAlloys judicial manager Mr Reggie Saruchera said the company had met its creditors and unveiled the new investor after, which the creditors approved the proposed deal, which will see the Indian company injecting $100 million into the chrome smelting company, half of which will go towards settling the company's debts.

Mr Saruchera said they were now working towards the operationalisation of ZimAlloys, which will see the rebuilding of blast furnaces and construction of other washing and smelting plants.

"We unveiled the new investor to our creditors last week and we are happy to announce that the deal has been approved. The investor is now moving in and will soon resume operations at ZimAlloys.

"However, the blast furnaces are expected to be refurbished to become fully operational within a period of up to 18 months. In the meantime the investor will also settle the company's debt while at the same time setting up other small smelting plants," he said.

Balasore has committed itself to settling ZimAlloys' $50 million debt.

It has also planned to revive the furnaces, refurbish smelters, construct mortal recovery plants and washing plants at the smelting firm.

"The company will re-engage its former employees and also employ more people as it grows and increase production," he said.

Balasore Alloys Group, formerly Ispat Alloys Limited, is part of the renowned Ispat Group of Companies, a major business house in India, promoted by the Mittals.

The group's companies are spread across six countries including Libya, Bosnia, Philippines, Azerbaijan and Uzbekistan. Other group companies in India include Ispat Industries Limited, Ispat Metallics India, Ispat Profiles India and Gontermann Peipers India.

ZimAlloys owns a total of 39 175 hectares of ore claims. The company, together with Zimasco, jointly controlled about 80 percent of Zimbabwe's chrome ore claims, mostly found along the Great Dyke.

The revival of one of the country's biggest ferrochrome producer ZimAlloys has rekindled hope for the sleepy city of Gweru.
- chronicle

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