Hwange Colliery ramps up production

Leonard Ncube in Hwange 

THE country’s giant coal miner, Hwange Colliery Company Limited has made significant improvement in its production levels from less than one million tonnes per year before being put under reconstruction in 2018, to over two million tonnes with a target of extracting more than six million tonnes per annum in 2025.

HCCL managing director Mr Blake Mhatiwa told members of the Political Actors Dialogue (Polad) that are touring industries countrywide that the company is on a recovery trajectory and set to reclaim its position as the big brother in the coal industry.

In 2016 the coal miner could not even pay its workers who were owed six months salaries which together with obsolete equipment made the company lose trust of investors and creditors.

Mr Mhatiwa said a scheme of arrangement that was put in place before 2018 couldn’t rescue the company and when Government put it under reconstruction in 2018, creditors started warming up and the company also obtained a loan that helped in recapitalisation. He said the HCCL success story is a result of deliberate Government policy to empower all pillars of the economy. Mr Mhatiwa said since being put under legal administration HCCL had significantly moved towards more efficient operations. The company has cleared six months workers’ salaries arrears and local debtors, and suplliers are jostling to partner the coal miner.

“We have managed to restore our status and we are once again vigorously pursing our objective. We were producing less than 1 million tonnes per year but now as of 2022 we are looking at producing over 4 million tonnes of coal per year. Now as we speak we have surpassed the 2 million mark in the first half,” said Mr Mhatiwa.

He said partnerships with some contractors had improved productivity at the company’s three pits. HCCL now employs close to 2 000 workers while private contractors employ a combined 4 000.  

“With the interventions we are putting in place, by the end of 2023 we will be producing more than 150 000 tonnes of coal per month from the current more than 50 000 tonnes. 

“The future looks bright considering where we are coming from and where we project to be, and we are looking at generating in excess of 6,5 million tonnes of coal per year by 2025,” said Mr Mhatiwa. 

Despite the challenges and coming in of more than half a dozen other coal miners HCCL is a key economic player as it supplies 60 percent of coal used to generate electricity at the Zimbabwe Power Company. 

HCCL used to owe local and international creditors about US$193 million and this has been reduced to about US$40 million after clearing all local debts.

Polad chairperson  Mr Trust Chikohora said political parties that participated in the 2018 elections were engaging industry towards making Zimbabwe a better country.

“We are here to assess what is happening in the economy focusing on the five pillars of the economy to help try and unlock value and to have a better industry. 

“We are very encouraged by what is happening and that HCCL in particular is on the mend as it is a critical resource for the country,” he said.

Mr Chikohora commended the Second Republic for its approach of embracing opposition parties for the good of the country. He said recommendations from the tour will be presented to responsible authorities including the executive.

“This is an eye opener for us and encouraging that we are going positive. Zimbabwe is for us all and it doesn’t matter which political party one supports. This shows that there is a new thinking in politics because first and foremost we are Zimbabweans hence we should differ constructively. It’s therefore incumbent upon all of us to work to make this country better. 

“As Polad we are a unique platform and with access to line Ministries and executive as we advise policy formulation, so these things will go up to that level,” said Mr Chikohora. — @ncubeleon

Article Source: The Chronicle