The winning bidder for embattled steel producer Evraz Highveld Steel and Vanadium would be announced on Wednesday, September 16, Economic Development Minister Ebrahim Patel reported on Monday.
Speaking in Johannesburg at the presentation of the Industrial Development Corporation’s (IDC’s) annual results, Patel said he had also been informed that the new equity partner had indicated a willingness to make material investments to modernise the Mpumalanga facility.
He said more than one serious bidder was identified following a bidding process, which closed on August 28, and that the business rescue practitioner would make an announcement on Wednesday.
The company had been in business rescue since April 13 and had also secured a R150-million facility from the IDC to enable it to address some of its immediate liquidity problems.
Mining and steelmaking operations had since been halted and a process had been initiated with organised labour at Highveld that could result in 1 089 of the group’s 2 240 employees being retrenched.
It was understood the bid was accompanied by a number of conditions, including several relating to Highveld’s environmental liabilities.