NRZ to raise capital from scrap metal

Published: 13 February 2014

THE National Railways of Zimbabwe (NRZ) plans to sell more than 30,000 tonnes of scrap metal to raise working capital.

Speaking during a tour of NRZ facilities in Bulawayo organised by the Zimbabwe National Chamber of Commerce (ZNCC) yesterday, NRZ acting general manager Lewis Mukwada said the company had stockpiles of more than 30,000 tonnes of scrap metal.

"We have about 30,000 tonnes of scrap metal and we cannot export it because of our country's legislation. Last year we floated a tender so that we get a buyer and we are in the process of selecting the winner," he said.

Although he did not give the value of the scrap metal, on the international market, scrap metal can fetch more than $300 a tonne, meaning that the NRZ scrap could be worth $10 million.

Mukwada said they used to take the scrap metal to a local company which would recycle the metal to make wheels and other components needed by the railways.

"We used to take our scrap metals to a metal company which was here in Bulawayo before it closed, they would recycle the scrap to make wheels which will then use, but now the company was closed and we have nowhere to take our scrap that is why it is lying idle here," he said.

Mukwada said they have had problems in the past with companies winning scrap metal tenders when they did not have the ability to pay.

"We have had some problems with bidders who, when they are granted the tender to buy the scrap they fail to pay or pay very little for the metal and this has affected us heavily," he said.

He said as a company they had capacity to operate at full capacity but there was a need for investment and partnerships.

"We need partnerships and investment so that we can operate at full capacity and even go on to take up jobs with other railways in the region," he said.

ZNCC past president Obert Sibanda said as a lobby group they are going to help NRZ with legal matters of selling the scrap metal and floating tenders.

"We are going to work with NRZ and help them mainly with the legal matters for them to sell the scrap metal and raise money to revive the company," he said.

"As ZNCC we will try to see how we can deal with some of the challenges that they have been facing as a company."

The deputy Minister of Finance and Economic Development Samuel Udenge and different ambassadors of different embassies attended the tour.

The tour was held ahead of a ZNCC Trade and Investment Opportunities conference to be held in the city today.

The conference is in line with Government's objective to capitalise and refurbish local industry.

Bulawayo has been hard hit with de-industrialisation with a number of major companies closing down.
- chronicle

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