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New buyer emerges after Pula Steel sale flops

Pioneering: Pula Steel closed its doors in 2017
Pioneering: Pula Steel closed its doors in 2017

Sherashiya Pty Ltd, a firm established by Indian mining investors, is finalising the purchase of Pula Steel and plans to resuscitate the Selebi Phikwe plant by next month, following the collapse of a previous takeover attempt by local iron ore producer, Vision Ridge.

The developments are the latest in an exhaustive bid to revive Pula Steel, the country’s pioneering steel producer. Pula Steel closed in 2017, just two years after it was built at a cost of P130 million, strained by financial and technical challenges, particularly the shortage of its raw material, scrap metal.

Last year, Vision Ridge Investments, the owner of the Ikongwe iron ore mine near Shoshong, sealed a P16 million with Pula Steel’s liquidators to take over the plant. Vision Ridge intended to produce final steel products for the first time in the country’s history by using scrap iron, sourced locally and externally, as well as iron ore sourced from Ikongwe.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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