Abramovich DID enquire about Hwange, Zisco

Abramovich DID enquire about Hwange, Zisco

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By Lebo Nkatazo

CHELSEA Football Club owner and Russian billionaire Roman Abramovich is keen to invest in Zimbabwe’s “minerals sector”, despite recent denials, according to Zimbabwe officials.

The Chelsea owner has spent two weeks in Zimbabwe, meeting officials from the country’s biggest coal mine, Hwange Colliery, and the country’s leading iron and steel manufacturer, Ziscosteel. Abramovich also made enquiries about investing in platinum mining, government sources confirmed.

Abramovich’s trip to Zimbabwe, explained as a “private visit” and “safari tour” by his spokesman, has already drawn sharp condemnation from British Labour MP and chair of the Chair of the All-Party Group on Zimbabwe, Kate Hoey, who charges the Chelsea owner is “putting in money to sustain a vile empire”.

President Robert Mugabe, in power for 28 years, is accused of human rights abuses and western governments have discouraged investment in Zimbabwe. Mugabe and over 100 of his officials are banned from travelling to Europe and are not allowed to own assets anywhere in the European Union.

Although reports indicated Abramovich might have left Zimbabwe on Thursday last week after flying into the resort town of Victoria Falls on his private jet, it emerged that he was still in Zimbabwe on Tuesday this week and had scheduled meetings with Reserve Bank governor Gideon Gono.

New Zimbabwe.com also understands from senior government officials that Abramovich was “welcomed by the system” -- a suggestion that top government officials, including President Mugabe, knew about his presence in the country.

An official in the Ministry of Mines revealed: “He is mainly interested in the minerals sector. Coal, platinum and iron and steel are some of the areas that he is enquiring about.

“His desire to invest is very significant and it sends a strong signal out there that where others are seeking to isolate Zimbabwe, others are sensing opportunity and willing to help revive Zimbabwe’s industries.”

Abramovich’s officials have denied that he is interested in investing in Zimbabwe.

But Fred Moyo, the managing director of Hwange Colliery told the Sun newspaper in England: “He was basically looking at general investment. He was asking what sort of capital we were looking for if someone had money to invest. He was expressing an interest in financing the mine.

“He said he had a market for coal – China and India. He was also interested in meeting people producing steel.”

Moyo also revealed that the regional police chief in Matabeleland North province was aware of Abramovich’s presence. Abramovich, travelling with 15 minders, would have sought police clearance for his security team’s weapons.

Vauxhall MP Hoey blasted: “I find this appalling. As a businessman he can do what he wants. But it’s come to something when you find the owner of Chelsea willing to back one of the most corrupt and brutal regimes in the world.

“If he invests, he will be putting in money to sustain a vile empire.”
The Zimbabwe government owns 40% of Hwange Colliery Company (formerly Wankie Colliery Company), but is seeking to sell its interest. Hwange provides most of Zimbabwe’s energy needs, with 72% of the coal mined from its coal fields going directly towards the generation of electricity.

Ziscosteel, meanwhile, depends on coal from Hwange to keep production going. The company is one of the biggest steel manufacturing firms in Africa but has suffered from poor capitalisation, a shortage of raw materials, and poor management practices. With contracts across Africa and Europe, the company, however, sits on a large debt. It recently plunged US$240 million into the rehabilitation of its steel plant, which included rebuilding the steel furnace.

Abramovich is considered the 15th richest man in the world with a personal fortune of about US$23,5 billion (£11,75 billion).
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