lcy to supply steel for rail upgrade, page-7

Another reason why LCY will continue to grow....

India's Essar Steel has its foot on as much as 45 billion tonnes of iron ore in Africa after agreeing to pay $US750 million for a majority stake in state-owned Zimbabwe Iron & Steel Co, which has been renamed NewZim Steel (NZS).

Under a deal signed in Zimbabwe earlier this month, Mumbai-based Essar Steel, part of the diversified Essar Group run by the billionaire brothers Shashi and Ravi Ruia, will spend up to $4 billion over the next few years on the steel plant, iron ore mines, a possible ore beneficiation plant, and associated power plants and other infrastructure.

Essar and the Zimbabwe government expect to hold 60 per cent and 40 per cent respectively of NZS after discussions with existing minority shareholders who have a 10 per cent stake.

Essar?s first task will be to rehabilitate Zimbabwe?s ageing steel plant at Redcliff, 260 km southwest of Harare, and restore it over the next three years to its former 1.2 million tonne per annum capacity. The deal also gives it 80 per cent of the mining venture NewZim Minerals - the former Buchwa Iron Mining Co (Bimco) - and the prospect of access to 45 billion tonnes of low-grade iron ore reserves the company holds.